Blue Star Ltd. share price target

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...

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 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 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...

Strong brand image with growing market share Way2Wealth Brokers Pvt. Ltd. (CIN U67120KA2000PTC027628) SEBI Rgn. No. : INH200002739. No. 14, Frontline Granduer, Walton Road, Bangalore-560001; Website: www.way2wealth.com Email: research@way2wealth.com...

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).

To achieve its stated five- business of HVAC, MEP and AC&R; service through new product introduction every year (two new launches annually), (b) aggressively grow in the adjacencies (air cooler, air purifier, professional kitchen refrigeration, engineering facility management and factory E&M; projects), (c) drive higher value addition through backward integration, import substitution by in-house manufacturing and supply chain efficiency, (d) incubate new business lines in the professional electronics segment by adding new agencies and forming JVs, and (e) invest in overseas markets and water purifiers businesses to turn profitable by FY21. migrate from small-ticket to large-ticket orders, and being selective in choosing sites, (b) retain market leadership in the buildings segment (malls, commercial buildings) and consolidate position in the infrastructure segment (airports, metros and power transmission segment) by providing superior after-sales service and enhancing customer engagement, (c) evaluate entry into select adjacencies with higher-margin opportunities within factory E&M;, industrial EPC and infrastructure MEP.

For 2QFY2019, Blue Star posted results above our expectations on the top-line front; however, bottom-line numbers came below expectations. The company has reported 21.5% top-line growth, whereas PAT was down ~14% yoy due to losses in JV and higher interest cost. Outlook & Valuation: We forecast Blue Star to report top-line CAGR of ~13..