Sharekhan is bullish on Blue Star has recommended buy rating on the stock with a target price of Rs 1200 in its research report dated April 05, 2021.
Broker Research
April 05, 2021 / 02:14 PM IST
Sharekhan’s research report on Blue Star
Expectation of strong summers, focus on technology, in-house manufacturing, introduction of new products and a recovery in project segment will be near-term growth drivers. Company would focus on growing higher than industry growth rates, improving profitability through scale and backward integration, deepening distribution reach and pursuing profitable adjancies. Revenue and earnings to clock a 27% and 71% CAGR, respectively for FY2021-2023E driven by core UCP segment along with improvement in OPM while return ratios are expected to improve.
Outlook
We initiate coverage on Blue Star (Blue Star) with a PT of Rs. 1,200, given its high net earnings growth trajectory for FY2021E-FY2023E and favourable relative valuation.
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