Blue Star shares rise 15%, hit all-time high; here’s why

Shares of Blue Star Ltd surged to an all-time high on Wednesday after the company launched a qualified institutional placement (QIP) issue on September 18 to raise Rs 1,000 crore. Shares of the air conditioners and industrial coolers maker zoomed 15% to a record high of Rs 920 against the previous close of Rs 800 on BSE. Total 1.37 lakh shares of Blue Star changed hands amounting to a turnover of Rs 12.15 crore on BSE. Market cap of Blue Star rose to Rs 17,365.39 crore.

The leading cooling products maker on September 18 launched its qualified institutions placement (QIP) offer with a floor price of Rs 784.55 per equity share. The floor price was 2.04 per cent lower than Rs 800, the closing price of Blue Star stock on Monday.

Shares of Blue Star have risen 9.50 per cent in 2023 and climbed 12.15% in a year. The stock hit a 52-week low of Rs 521 on September 19, 2022.

Blue Star shares have a beta of 0.3, indicating very low volatility in a year.

In terms of technicals, the relative strength index (RSI) of the Blue Star stock stands at 62.6, signaling it's trading neither in the overbought nor in the oversold zone. Blue Star shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day, 200 day moving averages.

Blue Star reported a 12.13% rise in consolidated net profit to Rs 83.37 crore in the first quarter ended June against a net profit of Rs 74.35 crore in the June quarter of the previous fiscal. Q1 profit was led by a good performance of its B2B business portfolio even though unseasonal rains impacted residential AC business.

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Revenue from operations rose 12.6% in Q1 to Rs 2,226 crore against Rs 1,977.03 crore in the year-ago period.

For the fiscal ended March 2023, the firm reported a 67.13% rise in profit to Rs 167.71 crore against a profit of Rs 100.35 crore in the previous fiscal. Sales grew 41.80% to Rs 6045.58 crore in the March 2023 fiscal against Rs 4263 crore sales in the March 2022 fiscal.

Blue Star Limited is an air-conditioning and commercial refrigeration company. The company operates through three segments: Electro-Mechanical Projects and Commercial Air Conditioning Systems, Unitary Products and Professional Electronics and Industrial Systems.

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