Amber Enterprises delivered a strong performance in the second quarter, with a profit of Rs. 21 crore, a significant improvement from the loss in the same period last year, and exceeding the estimated profit of Rs. 9 crore.

Revenues increased by 82% compared to the previous year, driven by impressive growth in the Consumer Durables and Electronics segments, which saw growth rates of 94% and 95% respectively. Operating profits also rose significantly by 91%, attributed to the substantial revenue growth and a slight improvement in margins.

The growth in the Consumer Durables segment was mainly driven by channel filling, with the RAC segment growing by 104% and the Non-RAC vertical by 68%. Sharekhan maintains a Buy rating on the stock and has set a revised price target of Rs. 7,350, based on a valuation of 41 times the estimated earnings per share for FY2027. Currently, the stock trades at valuations of 81x, 49x, and 36x its estimated EPS for FY2025, FY2026, and FY2027 respectively.