Amber Enterp. (AMBER)

FairStock Score: 33/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Revenue growth of 30.67% and a 5-year revenue CAGR of 26.90% show strong topline momentum.
• ROCE of 14.49% indicates reasonable capital efficiency despite current earnings weakness.
• Piotroski F-Score of 8/9 suggests sound balance-sheet fundamentals and financial resilience.
• Altman Z-Score of 4.00 points to low near-term bankruptcy risk.
• Debt/Equity of 0.77 is moderate, and promoter holding of 38.19% aligns owner interests.

Concerns

• Latest quarter reported a net loss of ₹9 Cr on sales of ₹2,943 Cr; profit growth is down 28.04%.
• Free cash flow is negative at ₹242 Cr, and dividend yield is zero, so shareholders receive no cash return.
• Valuation is extreme: P/E 120.73, P/B 12.00, EV/EBITDA 142.17, and Graham Number ₹832.74 gives a margin of safety of -857.57%.
• ROE of only 6.99% is weak relative to the 12 times book value being asked.

AI Analysis

Looking at Amber Enterprises, I see a growing business but not a bargain at today's price. Revenue rose 30.67%, and the five-year CAGR of 26.90% shows a company that has been compounding at an impressive pace. ROCE at 14.49% is decent, and an Altman Z-Score of 4.00 suggests no near-term solvency worry. The Piotroski F-Score of 8/9 also points to a sound fundamental structure. But the latest quarter tells a different tale: sales of ₹2,943 Cr produced a net loss of ₹9 Cr, and for the year profit growth has fallen 28.04%. ROE is only 6.99%, and free cash flow is minus ₹242 Cr. In other words, growth is consuming cash, not rewarding shareholders; the dividend yield is zero. Promoter holding of 38.19% is reasonable, and debt-equity of 0.77 is manageable, but this is still a capital-intensive story with uncertain returns. Now the valuation: ₹7,791.15 per share means a market cap of ₹28,062 Cr, which is 120.73 times earnings, 12 times book value, and an astronomical EV/EBITDA of 142.17. Graham's number, the conservative value benchmark, is only ₹832.74. The margin of safety is -857.57%. Even with high growth, a PEG of 49.19 means I am paying 49 years of current growth for every percentage point of expansion. That is not margin-of-safety investing; that is paying for perfection. The company may become an excellent appliance franchise, but the arithmetic now offers no room for error. I will wait for a price that gives me the safety Graham insisted upon.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer