Amber Enterprises plunges 17% after Q4 numbers. Here's what brokerages say

New Delhi: Shares of plunged as much as 17 per cent in early morning on Monday, following a poor set of numbers in the quarter ended March 2022.

Amber Enterprises India reported a 46.59 per cent decline in net profit to Rs 32.39 crore in the quarter as against Rs 60.64 crore during the previous quarter ended March 2021.

Following the earning updates, shares of Amber Enterprises tumbled 17 per cent to Rs 2,802.60 on Monday, before trading at Rs 2,832.85 at 9.40 am. The scrip had settled at Rs 3,376.45 on Friday.

The company clocked a 19.16 per cent increase in sale to Rs 1,556.55 crore in the fourth quarter of financial year 2021-22 as against Rs 1,306.29 crore during the corresponding period previous year.

For the full fiscal year, net profit of the company declined 6.7 per cent to Rs 48.10 crore as compared to Rs 51.56 crore during the previous year ended March 2021. However, the sales rose 36.7 per cent to Rs 3,137.60 crore in the FY22.

Shares of have tumbled about 21 per cent in the last one month, whereas the counter has remained flat in the last one year. The scrip has eroded about one third of its value from its 52-week low of Rs 4,023.65.

Commenting on the Q4 performance of the company, Brokerage firm Nirmal Bang Institutional equities has given a 'accumulate' rating on the counter with a target price of Rs 3,400 apiece.

"We expect Amber to register 81 per cent CAGR in earnings over FY22-FY24E on a low base," it added. "Strong cash flows, improving margin profile and return ratios will support Amber’s valuation."

Another domestic brokerage firm, has recommended to 'hold' the counter with a target price of Rs 3,376.

"We model Amber to report revenue and PAT CAGRs of 27.5 per cent and 51.1 per cent, respectively over FY22-FY24E and RoE to be at 11.7 per cent in FY24E," it added.