Buy Blue Star, target price Rs 1250: Centrum Broking

Centrum Broking has buy call on Blue Star with a target price of Rs 1250. The current market price of Blue Star Ltd. is Rs 1000. Time period given by analyst is one year when Blue Star Ltd. price can reach defined target.

Blue Star Ltd., incorporated in the year 1949, is a Mid Cap company (having a market cap of Rs 9631.39 Crore) operating in Consumer Durables sector.

Blue Star Ltd. key Products/Revenue Segments include Air Conditioners, Sale of services, Other Operating Revenue for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 1980.83 Crore, down -12.11 % from last quarter Total Income of Rs 2253.85 Crore and up 86.87 % from last year same quarter Total Income of Rs 1059.99 Crore. Company reported net profit after tax of Rs 74.82 Crore in latest quarter.

Investment Rationale
The brokerage expects BLSTR to report revenue CAGR of 18% over FY22-24E, but earnings CAGR will be higher at 53% due to lower base and lower tax rate. Strong brand reputation, healthy growth prospects and margin expansion levers will support its valuations.

Promoter/FII Holdings
Promoters held 38.78 per cent stake in the company as of 30-Jun-2022, while FIIs owned 12.25 per cent, DIIs 22.06 per cent.