Buy Blue Star, target price Rs 1600: JM Financial

JM Financial has buy call on Blue Star with a target price of Rs 1600. The current market price of Blue Star is Rs 1416.

Blue Star, incorporated in the year 1949, is a Mid Cap company (having a market cap of Rs 13619.75 Crore) operating in Consumer Durables sector.

Blue Star 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 31-03-2023, the company has reported a Consolidated Total Income of Rs 2630.48 Crore, up 46.68 % from last quarter Total Income of Rs 1793.36 Crore and up 16.71 % from last year same quarter Total Income of Rs 2253.85 Crore. Company has reported net profit after tax of Rs 224.02 Crore in latest quarter.

The company’s top management includes Mr.Shailesh Haribhakti, Mr.Arvind K Singhal, Mr.Sam Balsara, Mrs.Rumjhum Chatterjee, Mr.Anil Harish, Mr.Rajiv R Lulla, Mr.Dinesh N Vaswani, Ms.Sunaina Murthy, Mr.B Thiagarajan, Mr.Vir S Advani, Mrs.Anita Ramachandra. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2023, the company has a total of 10 Crore shares outstanding.

Investment Rationale
The company management highlighted that they intend to grow faster than market which is likely to clock 20% growth over Jan-Jun’23 period and intends to retain margin of 8-8.5% and 6-6.5% in Unitary Products and EMP segments respectively.

Promoter/FII Holdings
Promoters held 38.78 per cent stake in the company as of 31-Mar-2023, while FIIs owned 10.45 per cent, DIIs 25.11 per cent.