Amber Enterprises shares zoomed over 10 percent on Monday to hit a fresh 52-week high on hopes of the domestic manufacturer being the biggest beneficiary from the AC import ban. On October 16, the Directorate General of Foreign Trade (DGFT) came out with a notification to ban imports of ACs with refrigerants.

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The sentiment was also lifted after the company management told CNBC-TV18 that the move to ban imports of Acs with refrigerants will increase local manufacturing. It added that the demand for ACs is picking up and the business is back at 85-90 percent of pre-COVID levels.

However, the company expects a flattish performance in Q3 but good growth in Q4. It also noted that 30 percent of ACs worth Rs 4,000 crore were imported in India and of that 75 percent had refrigerants.

The stock rose as much as 10.4 percent to its 52-week high of Rs 2,406.60 on BSE.

Experts feel that this move by the government in line with the reducing import dependence in this segment. The majority of imports in this segment come from China and Thailand. Dolat Capital, in a recent report, said that this will impact the complete AC units, which is around 28-30 percent of AC import volumes.

It added that this move will increase opportunities for contract makers like Amber Enterprises, which can see higher assembly work.

The brokerage added that the company is expected to be a key beneficiary as the AC outsourcing mix is expected to improve from the current 38 percent to 50 percent on the back of a CAGR of 15-17 percent for the AC industry over the next 5 years.

"We expect it to grow faster than the industry over this period due to its large customer base (customers have a cumulative share of 75 percent of the AC market in India). We like the structural story and would recommend the stock should further price correction occur," it added.

(Edited by : Ajay Vaishnav)