Blue Star has target of Rs 225: SP Tulsian

Blue Star has target of Rs 225, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "If you see generally Q1 results i.e. of June quarter are always good and we see all these cooling companies, air-conditions, refrigeration, industrial project, centrally air-condition companies are doing quite well. We have seen last week all shares whether you talk of Hitachi Home, Voltas, Blue Star have all started moving up but I have chosen Blue Star for the simple reason that they are the largest central air-condition company catering to the commercial establishments, multiplexes and cold storages."
He further added, "If you see their financial performance for FY12 has been very bad, they had a topline of Rs 2,700 crore but could not maintain the bottomline against the bottomline of Rs 150 crore for FY11, they had a loss of close to about Rs 85 crore for FY12. So that has resulted into the share price correcting to as low as Rs 185 but inspite of such a huge loss, the company or the board of the company has declared a dividend of 50%. So that indicates that the losses have arisen largely because of these some bad contracts, which comes into the fold of the company and this is just a one of. You cannot write-off that the continuation of the losses will be seen hereafter as well."
"My call is that company should be able to post an EPS of close to about maybe in double digits if not Rs 12-13, which I am expecting but atleast in double digit for FY13 with bottomline of close to about Rs 90-100 crore and if that happens, we are going to see that from Q1 results and the kind of valuations at which the share used to rule maybe about 6-8 months close to about Rs 275-300. I am expecting that once you start seeing that kind of result, you can expect the price of maybe Rs 275-300 over next one year but I have kept a price target of Rs 225 in next six months and the bottom risk from hereon looks very minimal."