Blue Star Ltd., incorporated in the year 1949, is a Mid Cap company (having a market cap of Rs 8067.25 Crore) operating in Consumer Durables sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 1651.35 Crore, up 45.88 % from last quarter Total Income of Rs 1131.98 Crore and up 26.47 % from last year same quarter Total Income of Rs 1305.71 Crore. Company reported net profit after tax of Rs 67.11 Crore in latest quarter.
Investment Rationale
Incorporating existing risks on topline and margin, the brokerage cuts FY22E/FY23E EPS estimate by 17%/6%. The commentary on RAC industry trends suggests that events like a lockdown in Apr’21 (and the ongoing extension into May’21), rising commodity costs, and higher competitive intensity poses a risk to earnings in FY22. At the CMP, the UCP business of BLSTR is trading at 50x FY23E EPS, thus indicating an unfavorable risk reward.
Promoter/FII Holdings
Promoters held 38.8 per cent stake in the company as of March 31, 2021, while FIIs held 11.1 per cent, DIIs 21.6 per cent and public and others 28.6 per cent.
