Buy Blue Star, target Rs 495: Angel Broking

Angel Broking maintains a buy rating on Blue Star (BSL) with a 12-month target price of Rs 495. BSL is one of the largest air-conditioning companies in India. With a mere 3 per cent penetration level of ACs vs 25 per cent in China, the overall outlook for the room air-conditioner (RAC) market in India is favourable.

"Aided by increasing contribution from the cooling product division (CPD), we expect the overall top-line to post a revenue CAGR of 15 per cent over FY2016-18E and margins to improve from 5.7 per cent in FY2015 to 7.1 per cent in FY2018E," said the report.