Sharekhan is bullish on Blue Star, Blue Star is well placed to leverage on the opportunities in the domestic RAC and commercial cooling and the refrigeration industry.

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Consumer Affairs Secretary Rohit Kumar Singh has written a letter in this regard to six industry bodies including CII, FICCI, Assocham and PHDCCI as well as many manufacturers --Samsung, LG, Panasonic, Blue Star, kent, Whirlpool, Voltas, Bosch, Havells, Philips, Toshiba, Daikin, Sony, Hitachi, IFB, Godrej, Haier, Eureka Forbes, and Lloyd.

“October has been good, better than expected. The industry is doing well and we continue to outperform the industry. We are looking forward to a strong Q3 as well. You know that we will be building up stock in the market by December as well. So it is Dussehra, Diwali, and then the build-up for the summer so it looks like a positive outlook.”

The company also reported a net cash position of Rs 285.85 crores for the quarter ending September 2023 compared to a net borrowing of Rs 392.62 crores in the last fiscal.

Its revenue from operations during the quarter under review rose 19.47 per cent to Rs 1,890.40 crore. It was Rs 1,582.29 crore in the year-ago period.

The share touched a 52-week high of Rs 950.40 and a 52-week low of Rs 552.80 on 19 October, 2023 and 18 November, 2022, respectively.

On September 27, Wednesday, StockEdge identified 25 stocks in the overbought zone with declining RSI trends. ETMarkets delves into the significance of RSI and spotlights 10 stocks from this group.

Shares of Blue Star have emerged from a consolidation on the weekly time frame that could likely open a further 11% upside in the stock. The indicators on technical charts exhibit a bullish trend which are supported by strong volumes, experts tell ETMarkets as they recommend investors to hold this stock and not panic on corrections.

Blue Star has acquired 4.9 crore equity shares of Rs.10 each at par, aggregating to Rs 49 crore by way of subscribing to the rights issue of Blue Star Climatech Limited (BSCL).

Going ahead, if the counter fails to exhibit a smart rebound, the price action may dwindle towards Rs 2,288, its 200-SMA. Immediate hurdle comes to Rs 2,477(50 SMA), which must be leaped over to reclaim the losing bias.

Stocks that were in focus on Wednesday include names like Blue Star that gained over 13% to hit a new high, SJVN that rose nearly 7%, and Alembic Pharma which hit a fresh 52-week high, pared gains and closed with a loss of over 1%

While the Fed is expected to maintain the status quo on the interest rates this time around while adopting a wait-and-watch strategy, inflation worries loom amid rising crude oil prices which are hovering around the $92/bbl.

The Executive Management Committee at its meeting held on Monday considered and approved the issue's opening on September 18, 2023. It also approved the floor price for the issue, being Rs 784.55 per equity share, based on the pricing formula, as prescribed under the SEBI ICDR Regulations.

The proceeds from the QIP will be used to pare to some of Blue Star's outstanding debt and fund its growth aspirations.

A meeting of the Executive Management Committee of Blue Star is scheduled to be held on Friday to approve the "issue price of the equity shares" to be allotted to QIP buyers

"We have a strategy to develop products for the affordable segment, the bottom of the pyramid because growth comes from first-time buyers. That is where 95% of the sales are happening and the aspirational middle class forms 65% of the market in tier-2, tier-3 and tier-4 towns. We entered that segment only last year. "

Sharekhan recommended Hold rating on Blue Star with a target price of Rs 850 in its research report dated August 05, 2023.

The company, known for its refrigerators, washing machines and air conditioners, said consolidated net profit for the three months ended June 30 fell to 748.8 million rupees ($9.05 million) from 837.3 million rupees a year earlier.

A meeting of board of directors will be held on August 3 to consider the proposal.

Net Sales are expected to increase by 8.7 percent Y-o-Y (down 18.4 percent Q-o-Q) to Rs. 2,141.5 crore, according to Nirmal Bang.

Jefferies has initiated coverage on 16 stocks as 'Buys', all of which are in the small and midcap space. The brokerage firm believes that there is a higher share of domestic economy stocks in the SMID space and that SMIDs will continue to outperform large-cap stocks going forward. There is a dearth of medium-cap investment ideas and only 3 Nifty-50 components account for 5% of the market cap belonging to the industrial and realty group in the large-cap section. Conversely, 18-20% of the SMID market cap is made up of industrial and realty companies.