Shares of this small-cap stock involved in the business of providing household appliances jumped up to 4.50 percent in Wednesday’s trading session after the company incorporated a Joint Venture (JV) company for smart electronics products.
With a market capitalization of Rs 10,513.62 crores, the stocks of Amber Enterprises India Limited opened their trading session on Wednesday at Rs 3,084.95 and currently trade at Rs 3,120.35. The company’s scrip witnessed an intra-day high price of Rs 3,177.60 exhibiting a gain of approximately 4.50 percent compared to the previous close of Rs 3,040.75 apiece.
Such bullish stock price behavior was witnessed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE) dated 26th December 2023, announced the incorporation of “Stelltek Technologies Private Limited”, a JV between ‘IL JIN Electronics (India) Private Limited’, a material subsidiary of the company, and ‘Nexxbase Marketing Private Limited’.
Nexxbase Marketing Private Limited is a Gurgaon-based company engaged in the business of selling, distributing, marketing, and advertising electronic products including smart watches, earbuds, earphones, headphones, and many more under the leading brand i.e., “NOISE”.
The JV will have a shareholding in the ratio 50:50 and the same would carry out the business of manufacturing, assembling, and designing wearables and other smart electronics products.
During the recent financial quarters, the company has reported a dip in numbers as far as the basic indicators, viz, operating revenues and after-tax profits, are concerned.
The former reduced from Rs 1,701.99 crores during Q1FY23-24 to Rs 927.06 crores during Q2FY23-24, and, the latter, during the same period, transitioned from a profit of Rs 46.61 crores to a loss of Rs 5.65 crores.
Amber Enterprises India Limited is engaged in the business of manufacturing consumer durable products and other associated components. Deriving a majority of revenue from domestic operations within India, the company offers products such as air conditioners, microwave ovens, refrigerators, washing machines, and others.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
