This Stock Surged 13 Per Cent In One Day? What's The 'Vande Bharat' Connection?

Amber Enterprises India’s stock jumped by 13 per cent to Rs 6,881.10 on Monday, marking its sharpest intra-day rally in two months. The household appliance company’s stock had its biggest gain since October 23, when it rose by 20 per cent. Amber’s stock had also hit a record high of Rs 7,157.85 on October 24.

So far in 2024, Amber's stock has surged 116 per cent, significantly outperforming the BSE Sensex, which has risen by just 8.5 per cent in the same period. At 2:17 PM, the stock was trading 11 per cent higher at Rs 6,813.60, while the Sensex gained just 0.42 per cent. Trading volumes also spiked, with nearly 2.7 million shares changing hands on the NSE and BSE.

Amber Enterprises : Service in Vande Bharat

For Q2 FY25, Amber’s consolidated revenues rose by 82 per cent year-on-year (YoY) to Rs 1,685 crore, and its operating earnings (EBITDA) grew 85 per cent YoY to Rs 120 crore. However, the railways segment saw a dip due to delays in the Mumbai metro and Vande Bharat projects, as well as a shift by Indian Railways to non-AC coaches. Despite this, Amber remains optimistic about the railways segment, with no orders being canceled.

Amber Group: Diverse Business Segments

Amber operates in three key business areas: consumer durables, electronics (EMS), and railway subsystems & mobility. The consumer durables division focuses on room ACs, components, and other cooling solutions. Its EMS business provides solutions in telecom, automotive, smart meters, and more. Amber also supplies integrated solutions for the mobility sector, including HVAC, doors, and pantry systems for Indian Railways, metros, and buses.

Amber Group: Q2 FY25 Earnings

For Q2 FY25, Amber’s consolidated revenues rose by 82 per cent year-on-year (YoY) to Rs 1,685 crore, and its operating earnings (EBITDA) grew 85 per cent YoY to Rs 120 crore. However, the railways segment saw a dip due to delays in the Mumbai metro and Vande Bharat projects, as well as a shift by Indian Railways to non-AC coaches. Despite this, Amber remains optimistic about the railways segment, with no orders being canceled.

Amber Group: Long-Term Growth Outlook

Amber has signed a joint venture agreement with Korea Circuit to advance manufacturing of HDI, Flex, and Semiconductor Substrate PCBs. The company’s strong order book, along with new products in railways and defense, provides good growth prospects. 

Management also highlighted the growing opportunity in the bare board PCB market, which is expected to reach Rs 80,000 crore by FY 2030, growing at a CAGR of 11-12 per cent. With 85 per cent of the market currently imported, Amber is positioning itself to capture domestic demand.