The 11 reports from 4 analysts offering long term price targets
for Blue Star Ltd. have an average target of 776.25. The consensus estimate
represents a downside of -10.05%
from the last price of 863.00.
BLSTR's Unitary products grew by 17% YoY led by healthy growth in AC and Commercial Refrigeration business. The AC business grew 32% YoY surpassing industry growth of 25% YoY with market share of 13%. Looking to ramp up exports as it intends to participate in the impending PLI scheme. In the EMPS business, cautious execution of the projects based on customer's credit profile and operating cash flow visibility with growth opportunities from metro railways, electrical...
BLSTR's 3QFY21 revenue was 7% below our estimate, with the miss attributable to Electro Mechanical Projects and Services (EMPS) segment. Operating profit stood higher than our estimate on better sales mix and continuation of cost rationalization measures. Net borrowing reduced by INR2.1b to INR1.3b (v/s INR3.4b in 1HFY21 and INR1.3b in 9MFY20). The company continues to maintain higher liquidity in uncertain times as gross debt stood at INR5.9b. The commentary on RAC industry trends suggest improving prospects. We...
Blue Star (BLSTR) reported consolidated revenue of Rs11.2bn, down 9% YoY, in line with our estimate. Unitary Products segment's revenue grew 17% YoY to Rs4.9bn, led by healthy growth in AC and Commercial Refrigeration business. EMPS' revenue fell 23% YoY to Rs5.9bn due to cautious execution of the projects based on customer's credit profile and operating cash flow visibility. Gross margin fell 50bps YoY to 24.2%. EBITDA grew 43% YoY to Rs816mn while EBITDA margin rose by 270bps YoY to 7.3%, aided by cost rationalization measures. EBIT margin of Unitary Products segment rose by 610bps YoY to 7.9% on a low base while EMPS margin rose 70bps YoY to 5.8%. Aided by lower tax rate at 26.5% (vs. 37.8% YoY), PAT...
Q2 was a gradual improvement over Q1 with revenues down 28% YoY, driven by a dip of 16% in the unitary cooling business at Rs3bn. The project business was down 31%, impacted due to sites with sites operating at 65-70% levels in Q2 as they open up. While revenues came in line, EBIDTA and PAT were better than estimates (Exhibit 1) Both the businesses are expected to show improvement as the economy opens up, with company expecting better H2 margins. The AC business is expected to normalize by Q4FY21, which is the next big...
Blue Star (BLSTR) reported consolidated revenue of Rs9bn, down 28% YoY, in line with our estimate, but 9% below consensus. Unitary Products segment's revenue fell 16% YoY to Rs3.2bn while EMPS segment's revenue fell 31% YoY to Rs5.4bn. Gross margin fell 60bps YoY to 24.6%. EBITDA fell 25% YoY to Rs551mn (aided by 38% YoY decline in other expenses), leading to EBITDA margin of 6.1%, up 20bps YoY. Higher interest costs and lower other income led to 60% YoY decline in PAT to Rs153mn (above our/consensus estimate of Rs43mn/Rs87mn). EBIT margin of Unitary Products/EMPS segments rose 50bps/70bps YoY to 3.7%/6.4%. BLSTR expects the RAC and Commercial Refrigeration markets to return to growth...
Blue Star (BLSTR) reported consolidated revenue of Rs6.3bn, down 60% YoY and 6% below our/consensus estimates each, as lockdown impacted peak summer season of AC sales. Unitary Products segment's revenue fell 70% YoY to Rs2.8bn as lockdown impacted secondary sales of AC and refrigeration products (AC market shrunk by 65%) while channel inventory was high. EMPS segment's revenue fell 50% YoY to Rs3.1bn as most project sites were shut amid lockdown. Gross margin fell 130bps YoY to 23.5% due to unfavourable sales mix. EBITDA fell 99% YoY to Rs14mn leading to EBITDA margin of 0.2%. Lower operating profit and higher interest cost (up 125% YoY to Rs185mn) led to net loss of Rs197mn...
5 August 2020 successful in reducing its working capital (WC) cycle in FY20. As % of sales, WC stood at 6.2% in F20 (v/s 10.6% in FY19) due to debtor days declining to 57 days in FY20 (v/s 78 days in FY19). Free cash flow (FCF) generated stood at INR3.7b in FY20, implying FCF/EBITDA of 131% and FCF/Adj. PAT of 252%. Over FY14-20, FCF generation stood strong at INR8.9b, implying 100% FCF/Adj. PAT. BLSTRs products are exported to 18 countries across the Middle East, Africa, SAARC and ASEAN regions. Revenues from abroad doubled to INR5.2b in FY20 (v/s INR2.6b in FY15). Also, share of revenue from abroad now constitutes ~10% of the companys total revenue (v/s 8.
The Blue Star AR while addressing the covid-19 impact talks about company's focus on constant innovation, product expansion and dealer engagement. The company revamped its products and brand with Virat Kohli as the brand ambassador in FY20. The company has implemented the BlueStar@80 FY24 strategy; management continuity, constant...
We interacted with the management of Blue Star (BLSTR) to seek more clarity on the current situation amid COVID-19 crisis as well as gauge future outlook. Considering the loss of summer sales of RAC, FY21E sales could decline in the range of 10%-25% for the industry. In the Projects segment, BLSTR will ensure its focus on cash flows while being selective in execution post reevaluating creditworthiness of its customers. To counter decline in sales, BLSTR is implementing reduction in various expenses, including salary cuts. The key takeaways are summarized below: BLSTR had ambitious plan for FY21 and was hoping for a 25% growth in sales in...
Blue Star (BLSTR) reported consolidated revenue of Rs12.9bn, down 19% YoY and 10%/15% below our/consensus estimates, due to significant impact on company's billing and order fulfillment in the wake of COVID-19 crisis. Unitary Products segment's revenue fell 15% YoY to Rs5.9bn due to lower off-take in March (a key month in peak summer season sales of ACs). EMPS segment's revenue declined 22% YoY to Rs6.6bn, owing to lower billing amid the COVID-19 outbreak. Unitary Products EBIT margin fell 310bps YoY to 7.3% due to lower sales in March and higher advertising and sales promotion. EMPS' EBIT margin fell 380bps YoY to only 0.5% due to lower billing and Rs150mn provisions for doubtful receivables (230bps...
13 May 2020 Blue Star (BLSTR) barely managed to report profit in 4QFY20 as shutdown toward end-Mar20 impacted the UCP/EMP segments. Also, BLSTR is looking at debt financing to maintain liquidity in the current challenging times. We have cut our FY21E/F22E earnings by 57%/29% as we factor in likely weak primary sales in the UCP segment in FY21 until inventory weak order inflow and execution in the EMP segment as the company focuses on cash conservation. Our SOTP-based TP stands at We continue to prefer Voltas over BLSTR to play the underpenetrated AC market in India. 4QFY20 revenue declined 18.6% YoY to INR13b and was 16% below expectation. Owing to lack of operating leverage and ECL related provisions in the project business, EBITDA declined 66% YoY to INR373m (63% below est.) EBITDA margin was down 400bp YoY to 2.9% (v/s est. Adj. PAT came in at INR96m, down 88% YoY.
Blue Star (BLSTR) reported consolidated revenue of Rs12.4bn for 3QFY20, up 13% YoY, broadly in-line with our/consensus estimates. Unitary Products segment's revenue grew by 7% YoY to Rs4.2bn in a non-seasonal quarter for ACs (ACs up 10% YoY and commercial refrigeration products up 7% YoY). EMPS segment's revenue grew by 16% YoY to Rs7.6bn led by healthy execution. Order book grew by 23% YoY to Rs28.1bn. Unitary Products' EBIT margin fell 60bps YoY to 1.8% due to high advertisement spends. EMPS segment's EBIT margin rose 50bps YoY to 5.1% owing to execution of better margin projects and cost control initiatives. Consolidated EBITDA margin rose by 70bps YoY to 4.6%, but below our/consensus...
Blue Star Ltd. (BLUESTAR) reported strong revenue growth of ~13% YoY to `12,359.1mn, with the EMPS segment registering growth of ~16% YoY to `7,588mn driven by strong execution and cost optimisation measures. The UCP segment grew 7.3% YoY/ 11.4% QoQ to...
Blue Star (BLSTR) reported consolidated revenue of Rs12.5bn for 2QFY20, up 21% YoY, above our/consensus estimate of Rs11bn each. Unitary Products segment's revenue grew by 10% YoY to Rs3.8bn in a non-seasonal quarter, while demand was driven by Tier 3/4/5 towns. EMPS segment's revenue grew by 24% YoY to Rs7.8bn on execution of a healthy order book. Order book grew by 32% YoY and 3% QoQ to Rs29.4bn as on 1HFY20. Unitary Products' EBIT margin grew by 80bps YoY to 3.2%, while EMPS segment's margin fell 140bps YoY at 5.7%, on a high base, but up 30bps QoQ. Consolidated EBITDA margin rose by 30bps YoY to 5.9%, exactly inline with our/consensus estimate. The company has not shifted to the lower tax regime as it is yet to avail Rs670mn worth of MAT credit. Lower interest costs and higher other income aided...
Blue Star Ltd. (BLUESTAR) reported strong revenue growth of 21% YoY to `12,494.7mn, with the EMPS segment registering growth of 24.2% YoY/25.6% QoQ to `7,835.4mn driven by health order book and strong execution. UCP segment grew 10% YoY to `3,772.1mn in line...
Blue Star Ltd. (BLUESTAR) reported muted revenue growth of 4.5% YoY to `15,745.5mn, with the UCP segment registering sales growth of 9.2% YoY to `9,068.9mn. EMPS business sales growth was flat for the quarter at `6,239.4mn due to slower pace of execution of orders and preference of being balance-sheet prudent with prompt payment from customers based on order...
Blue Star (BLSTR) has reported a muted performance in 1QFY20 with its adjusted PAT growing by 1% YoY to Rs768mn due to muted revenue growth and lower margin across segments. Blended EBITDA margin declined by 184bps YoY to 7.3%. Its revenue grew by 4% YoY to Rs15.8bn led by 9% YoY growth in unitary products segment, while revenue of project business remained flat. Order book rose by 34% YoY to Rs28.4bn, while order inflow grew by 55% YoY to Rs9.7bn. We continue to remain positive on BLSTR on the back of improving margin profile, healthy balance sheet and healthy market share. We maintain our BUY recommendation on the stock with...
Blue Star (BLSTR) reported consolidated revenues of Rs16bn for 4QFY19, up 19% YoY and 8%/5% above our/consensus estimate, respectively. Top-line growth was driven by EMPS segment (revenues up 21% YoY at Rs8.4bn) led by execution pick-up and increased sales of chillers and VRF. Unitary product segment's revenues rose 19% YoY to Rs7bn led by the strong surge in sales of commercial refrigeration products. While EMPS margin was soft at 4.3% (down 30bps YoY), unitary product margin rose 350bps YoY to 10.4%. Consequently, consolidated EBITDA margin was above our estimate at 6.9%, up 240bps YoY. Consolidated EBITDA grew 81% YoY to Rs1.1bn, 33%/30% above our/consensus estimate, respectively. Lower tax rate at 1% (versus 20% YoY)...
3 May 2019 4QFY19 sales at INR16b grew 19% YoY (v/s our est. of INR15.2b) on strong pick-up in UCP segment sales (+19% YoY) and timely execution of projects in the EMP segment (+21% YoY). EBITDA of INR1.1b (+81% YoY) was ahead of our estimate of INR839m, supported by better-than-estimated margins in the UCP segment (+350bp YoY; 10.4%). Adj. Net Profit increased 212% YoY to INR824m (v/s our est. of INR482m) on lower-than-estimated tax during the quarter (1% v/s our est. PAT grew 13% (INR52.3b)/ 30% (INR3.5b)/35% (INR1.9b).
