Sharekhan has given Buy recommendation for Blue Star with a target price of Rs. 1200 in its research report issued on May 07, 2021
Sharekhan’s research report on Blue Star
Overall, Q4 results were good with broad-based growth seen across segments leading to beat in revenue and profitability. Margins came in lower than estimates largely due to high input cost. Blue Star continued to grow faster than the market in RAC, achieved breakeven in water purifier, and maintained its leadership position in commercial refrigeration. Barring the likely COVID-led impact in Q1FY2022, management is optimistic of growth prospects with overall goal of market share gains, cost management, and OCF generation.
We maintain Buy on Blue Star Limited (Blue Star) with an unchanged a PT of Rs. 1,200, given its high net earnings growth trajectory for FY2021-FY2023E and favourable relative valuation.