Accumulate Blue Star, target price Rs 1,045: Nirmal Bang Securities

Nirmal Bang Securities has accumulate call on Blue Star with a target price of Rs 1045. The current market price of Blue Star is Rs 986.05.

Blue Star, incorporated in the year 1949, is a Mid Cap company (having a market cap of Rs 9525.44 crore) operating in Consumer Durables sector.

Investment Rationale
The demand of ACs has rebounded in the month March. There is an expectation of strong 1QFY23 amongst channel partners barring for geopolitical tensions and supply constraints.


The brokerage maintains Accumulate rating with a revised SOTP-based target price (TP) of Rs 1,045. On FY24E earnings, the brokerage assigns a P/E of 40x to the UCP segment and 15x to the Projects business.

Financials
For the quarter ended 31-12-2021, the company has reported a Consolidated Total Income of Rs 1519.60 crore, up 21.78 % from last quarter Total Income of Rs 1247.86 crore and up 34.24 % from last year same quarter Total Income of Rs 1131.98 crore. Company has reported net profit after tax of Rs 47.21 crore in latest quarter.

Promoter/FII Holdings
Promoters held 38.76 per cent stake in the company as of 31-Dec-2021, while FIIs owned 11.09 per cent, DIIs 22.83 per cent.