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Amber Enterprises shares rally 8% after Credit Suisse initiates coverage

Amber Enterprises shares rally 8% after Credit Suisse initiates coverage

Amber Enterprises shares rally 8% after Credit Suisse initiates coverage
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By Ankit Gohel  Dec 8, 2020 11:55:23 AM IST (Published)

The share price of Amber Enterprises India rallied over 8 percent in the early trade on Tuesday after global brokerage house Credit Suisse initiated its coverage on the stock.

The share price of Amber Enterprises India rallied over 8 percent in the early trade on Tuesday after global brokerage house Credit Suisse initiated its coverage on the stock.

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The stock price jumped as much as 8.3 percent to an intraday high of Rs 2,481.40 apiece on the BSE. The stock has gained over 67 percent in the last six months.
Credit Suisse initiated its coverage on Amber Enterprises with an 'Outperform' rating and a target price of Rs 3,000 per share based on its strong extant platform in terms of customers, manufacturing and track record.
Analysts are of the view that the company has huge opportunities from exports and the production-linked incentive (PLI) scheme launched by the government and experts see near-term growth visibility.
Credit Suisse believes that the stock valuation is reasonable for platform, growth outlook, return ratios, and cash flows.
Amber Enterprises is a prominent solution provider for the air conditioner OEM/ODM industry in India. The company has a dominant presence in RACs complete unit and deals in major RAC components with 10 manufacturing facilities across India focusing on different product segments.
The company manufactures about 25 percent of ACs sold in India, with 15 manufacturing facilities and has built/acquired capabilities for vertical integration.
Last month, the union government expanded the Rs 2 lakh crore worth of production-linked incentives to 10 more sectors to boost domestic manufacturing.
Information and Broadcasting Minister Prakash Javadekar had said production-linked incentives will be offered for sectors such as white goods manufacturing, pharmaceutical, specialised steel, auto, telecom, textile, food products, solar photovoltaic, and cell battery.
Analysts expect Amber Enterprises to be a major beneficiary of the scheme.
At 10:30 am, the shares of Amber Enterprises were trading 3.58 percent higher at Rs 2,373.00 apiece on the BSE as compared to a 0.59 percent gain on the benchmark Sensex.
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