Amber Enterprises share price rallied over 3% in early trade on Friday, despite a broader weakness in the Indian stock market. Amber Enterprises shares gained as much as 3.70% to ₹8,249.95 apiece on the BSE.
The Indian stock market crashed, with the benchmark BSE Sensex trading over 700 points lower and the NSE Nifty 50 slipping 0.8% to below 24,000 level.
The gains in Amber Enterprises share price today came after the company announced a manufacturing collaboration with Oppo Mobiles India Private Limited. OPPO India is a licensed manufacturer of mobile phones for OPPO, OnePlus and Realme brands in India.
Under this collaboration, Amber Group will manufacture Mobile Phones for these brands, to enhance local value addition and local supply chain strengths.
The collaboration is expected to create opportunities for operational synergies and reinforce Amber’s position as a preferred entity for B2B manufacturing. Both companies will work closely to ensure a gradual smooth ramp-up and to explore additional opportunities for future collaboration, Amber Enterprises India said in a regulatory filing on June 18.
Ernst & Young (EY) acted as the exclusive financial advisor, while AZB & Partners and Aekom Legal acted as legal advisors.
Analysts at JM Financial believe that this announcement simply indicates the two entities entering into an MoU, with execution expected to ramp up meaningfully only from FY28E. While more clarity is awaited on the timelines, capex investments, structure of the agreement, potential volumes, etc., its back-of-the-envelope calculations indicate an optionality of ₹432 per share.
“This is based on our understanding that granular economics for this arrangement should be clearer within a quarter, testing likely to be in place by end-FY27, and mass manufacturing to commence by FY28,” said JM Financial.
Amber Enterprises Share Price Performance
Amber Enterprises share price has risen 13% in one month and 20% in three months. The stock has rallied 25% on a year-to-date (YTD) basis, while it has jumped 101% over the past two years. Amber Enterprises shares have delivered multibagger returns of 282% in three years and 195% in five years.
At 10:00 AM, Amber Enterprises share price was trading 0.87% higher at ₹8,024.00 apiece on the BSE.
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