A diversified B2B company having three business verticals; Consumer Durables, Electronics (EMS) and Railway Subsystems & Mobility have recently entered into an MoU (Memorandum of Understanding) following which its share prices moved up by nearly 2.81 percent to Rs. 3,871.8 on January 23.
With a market cap of Rs. 12,149.3 crore, shares of Amber Enterprises India Ltd opened at Rs. 3,739.85 on Tuesday from its previous close of Rs. 3,707.2. The company has delivered a positive return of more than 61.5 percent in the last six months, and more than 77.6 percent in the last one year. So far, it has given around 15.61 percent returns in 2024.
According to the recent filings on the stock exchanges, Amber Group signed a MoU to manufacture Flex, HDI, and Semiconductor substrates PCBs, with South Korea’s Korea Circuit, a YoungPoong group co., through its recent venture Ascent Circuits.
The MoU between Korea Circuit and Ascent Circuits is a significant step for Korea Circuit’s expansion into the Indian market and will allow Korea Circuit to meet the growing demand in India for electronics and offer its customers a genuine and efficient supply chain.
Korea Circuit is the pioneer of the Korean PCB (printed circuit board) industry and for the past 4 decades, it has seen the development of Korea’s electronics industry as an expert in the production of PCB.
While this association will help enhance the capability of Ascent Circuits, a subsidiary of Amber, to provide solutions to the Mobile & Semiconductor industry, it will also assist Korea Circuit in providing solutions to major customers in India giving it a competitive advantage in the Indian market and help to grow its business.
Earlier this month, Amber Group entered into a definitive agreement with Ascent Circuits Private Limited to acquire a majority stake of 60 percent in Ascent. This acquisition has been affected through ILJIN Electronics, an Amber group company.
In terms of financials, the revenue from operations of Amber Enterprises India Ltd grew by 65 percent from Rs. 4,206 crore in FY21-22 to Rs. 6,927 crore in FY22-23, accompanied by an increase in net profit from Rs. 111 crore in FY21-22 to Rs. 164 crore in FY22-23.
As of December 2023, FIIs hold 28.29 percent of the shares, whereas DIIs hold 14.67 percent of the shares in the company, aggregating to 42.96 percent of the institutional holdings.
With the recent acquisition of Ascent Circuits followed by this MoU with Korea Circuit places, Amber is in a remarkable spot and positions itself as a leading player in the Electronics (EMS) space opening a range of new business opportunities.
Written by Shivani Singh
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.
