Moneycontrol PRO
Upcoming Event : LeapToUnicorn - mentoring, networking and fundraising for startups. Register now

Buy Blue Star; target of Rs 1410: Sharekhan

Sharekhan is bullish on Blue Star has recommended buy rating on the stock with a target price of Rs 1410 in its research report dated November 04, 2022.

November 08, 2022 / 11:21 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sharekhan's research report on Blue Star


Blue Star Limited’s (Blue Star) Q2FY2023 performance was driven by strong growth in EMPS, while UCP segment delivered resilient performance despite lean quarter. OPM was below our expectations despite gross margin improvement. Net profit grew in-line with our estimates. The company expects order intake momentum in the EMPS segment to continue and expects 6-6.5% margin in FY2023. RAC industry would grow by 20-25% during FY2023 and Blue Star would grow faster than the industry. Blue Star has strong growth levers in all its business segments as the capex cycle is on upswing and consumer sentiments are also improving. We envisage ~21%/~34% revenue/PAT CAGR of FY2022-2025E.


Outlook


We maintain a Buy rating on Blue Star with a revised PT of Rs. 1,410, given robust H1FY2023 and strong long-term growth potential in both UCP and EMPS segments.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Blue Star - 05-11-2022 - khan

Broker Research
first published: Nov 8, 2022 11:21 am