Shares of air conditioner maker Blue Star rose 5% to a high of Rs 1,550 in intraday trade on Tuesday after the company said its board would consider a proposal to issue bonus shares on May 4, 2023, besides announcing Q4 and FY23 company performance.

The stock was up 2.2% at Rs 1,510 at 9:25 am, with around 1,500 shares traded on the BSE. Meanwhile, the S&P BSE Sensex gained 0.4% to 61,354.

The stock has soared more than 38% so far this calendar year. In comparison, the BSE benchmark gained just 0.8%.

Buying at counters engaged in the air conditioning (AC) business is attributed to the ongoing summer season and frequent heat waves across India. The Indian Meteorological Department has predicted an extreme heatwave this season.

For the quarter that ended December 2022, the company reported a 36.7% year-on-year rise in net profit to Rs 5.21 crore, boosted by a 23.4% rise in total revenue to Rs 165.41 crore.

In early April, managing director B Thiagarajan told a press conference that Blue Star aims to capture about 15% of the residential air conditioner market in terms of value as the cooling product maker expands its product portfolio and distribution network.

According to Thiagarajan, the company aims to achieve a 15% market share in the room air conditioner segment by FY25.