Amber Enterprises India Ltd's shares are under tremendous pressure after the company said higher minimum wages in north India, rising prices of copper-clad laminate and gold, and currency movements are increasing cost pressure across divisions.
Shares of Amber Enterprises are down over 15% as of 11:50 am, trading at around Rs 7,159 apiece. The stock fell as much as 17.65% intraday.
Of 30 analysts tracking the stock, 23 have a 'buy' call, six have a 'hold' call, and only one has a 'sell' rating on Amber. The average target price is Rs 8,350.43, implaying an upside of 15.3%, as per Bloomberg data.
The company expects margin pressure of 50 basis points to 100 basis points in FY27 as higher wages, rising raw material costs and currency depreciation weigh on its consumer durables and electronics businesses despite a recovery in room air-conditioner demand.
Management also said price increases in the printed circuit board business take longer to pass through to customers compared with the RAC business. "We expect a margin pressure of 50, 100 bps at consolidated level, which is temporary in nature and expected to normalize as macro environment improves," Executive Chairman Jasbir Singh said during the company's post-earnings call.
The comments come even as Amber guided for stronger demand in the RAC industry during FY27. The company expects industry volume growth of 12%-13% for the full year and around 20% growth in the June quarter because of a weak base and rising temperatures from mid-April onward.
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