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.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!