Shares of the contract manufacturer of air conditioners Amber Enterprises soared more than 12% on May 17 after the air conditioner contract maker said its consolidated profit rose 82% year-on-year to Rs 104 crore in the quarter that ended March FY23.

Operating income for the quarter rose 55% to Rs 3,002.6 crore compared to the same period last year.

The stock was quoted at Rs 2,080 on the NSE at 10:45 am, up 10.5% from its previous close. The volume of 1.05 million shares was almost 17 times the 20-day average of 59,869 shares.

The company said the ROCE (return on capital employed) has improved from 11% in FY22 to 15% in FY23 and is expected to further improve by 19% to 21% in the next 2-3 years.

On the operational front, EBITDA jumped 62% to Rs 204 crore in 4QFY23 from Rs 125 crore in 4QFY22.

Chairman and CEO Jasbir Singh said: “While room air-conditioning remains our focus area, the other four divisions within our group – Electronics, Motors, Mobility and Components are witnessing rapid growth, ultimately strengthening the top line and bottom line,” Amber Enterprises said.

In FY23, the company’s capex stood at Rs 698 crore.

According to Bloomberg, there are 18 buy, 6 hold and 1 sell on the stock. The stock currently trades at 63.62 times trailing 12-month PE.