Investec downgrades Amber Enterprises stock rating to Hold amid inventory concerns

Published 11/08/2025, 08:22
Investec downgrades Amber Enterprises stock rating to Hold amid inventory concerns

Investing.com - Investec (LON:INVP) has downgraded Amber Enterprises India (NSE:AMBE) Ltd (NS:AMBER) from Buy to Hold, while lowering its price target to INR8,180.00 from INR9,000.00.

The downgrade comes after concerning commentary from Voltas (NSE:VOLT) and PG regarding inventory levels carried by distribution channels and brands in the room air conditioner (RAC) market.

Investec has reduced its estimates for Amber Enterprises and lowered the target price-to-earnings ratio for the company’s Consumer Durable business from 40x to 35x.

The research firm maintains a cautious stance on the RAC sector, citing several challenges including increasing competition, weak brand loyalty, and multiple headwinds expected in the coming quarters.

Investec also noted that current valuations in the sector appear expensive given these market conditions.

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