Please refer to important disclosures at the end of this report
Blue star Limited (BSL) is one of the largest air-conditioning companies in India.
With a mere 3% penetration level of ACs v/s 25% in China, the overall outlook
for the room air-conditioner (RAC) market in India is favourable. BSL’s RAC
business has been outgrowing the industry by ~10% points over the last fe
quarters, resulting in the company consistently increasing its market share (~7%
in FY2014 to 10.5% at present). This has resulted in the Cooling Products
Division (CPD)'s share in overall revenues increasing from~23% in FY2010 to
~42% in FY2016 (expected to improve to ~47% in FY2018E). With strong brand
equity and higher share in split ACs, we expect the CPD to continue to drive
growth. Aided by increasing contribution from the CPD, we expect the overall
top-line to post revenue CAGR of ~16% over FY2016-18E and margins to
improve from 5.3% in FY2015 to 7.3% in FY2018E. Moreover, the merger o
Blue Star Infotech has infused cash and strengthened the balance sheet. The
Company has been maintaining a healthy dividend payout of 39.70%. The
company has reported a healthy profit growth of 26% CAGR and return on
equity of 18% in the last 3 years. Hence Buy.
CMP `687
Stock Info
Bloomberg Code
Shareholding Pattern (%)
Promoters 39.1
MF / Banks / Indian Fls 22.7
FII / NRIs / OCBs 11.0
Indian Public / Others 27.2
Abs. (%) 3m 1yr 3yr
Sensex 7.4 13.6 28.8
Blue Star 33.1 68.9 222.3
52 Week High / Low 724/404
Avg. Daily Volume 11,518
Consumer Durables
Market Cap (
cr) 6,565
BSE Sensex 29,319
Nifty 9,105
Face Value (
Reuters Code BLUS.BO
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Blue Star
Others | Consumer Durables
April 19, 2017
Blue Star | Consumer Durables
pril 19, 2017
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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Disclosure of Interest Statement Blue Star
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
: Reduce
-5% to -15%
< -15