New Delhi, Sept. 29 -- Indian equities may be struggling under global headwinds and stretched valuations, but one little-known consumer electronics stock is defying the odds. Amber Enterprises, a contract manufacturer for top AC and electronics brands, has surged 14% in a month and 75% in a year-leaving benchmark indices far behind.

What's driving the surge?

A mix of strong execution and smart strategy. Over the past year, the company has outpaced most of its peers in consumer durables and electronics, while moves such as backward integration and a potential demerger of its electronics arm have stoked investor optimism.

But the rally has also stretched valuations. The stock now trades at a price-to-earnings ratio (PE) of 104x-well abov...