Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

Blue Star - Q4 FY21 first cut - Inline performance - YES Securities

Posted On: 2021-05-07 05:39:04 (Time Zone: UTC)


Result summary -Blue star (BLSTR IN) reported in -line revenue growth with unitary products delivering 31% revenue growth in-line with estimates, while EMP and Packaged Air conditioner grew marginally higher than estimated and EPS registering revenue decline.

Margins - EBITDA grew 173% yoy with EBITDA margin of 6.3%, an improvement of 344bps yoy but 214bps lower than estimated. Gross margin at 21.9% (lowest in past 5 years) contracted 358bps and 231bps yoy and sequentially. Higher commodity prices and product mix shift towards mass premium segment would have dented gross margin. Significant reduction in other operating expense led to expansion in EBITDA margin despite contraction in gross margins. Other operating expense saw reduction of 21% yoy.

EMP and Packaged Air-conditioners: Revenue from EMPS grew 18.1% yoy on improved execution. Margins in this segment expanded by 574bps and 39bps yoy and sequentially to 6.2% on back of better margin profile jobs executed during the quarter and improved margin in commercial air-conditioning and service business. Company continued to see healthy traction in the Healthcare, Pharma, Industrial and Government customer segments. Carried forward order book stood at Rs29.5bn, flat on yoy basis.

Unitary Products: Revenue grew 31.1% yoy, in-line with estimates. Improvement in general business sentiment, increased share of business from e-commerce and sustained initiatives such as introduction of new product categories and foray into new customer categories. Commercial Refrigeration business which saw increased traction from retail and pharma segment also contributed to growth of the unitary products.

Professional Electronics and Industrial Systems: PEIS revenue grew 16.6% yoy as orders from healthcare business and essential services from government remained encouraging. Opportunities from BFSI sector for data security and solutions business led to growth in revenue.

Other Highlights: 1.) Gross debt has remained flat on yoy basis at Rs45.1bn while it has reduced by Rs30.1bn from Sept'20 levels. 2) Cash conversion cycle at 8 days has remained flat on yoy basis. 3) Company has declared final dividend of Rs4/share.

Near-term outlook - We expect business environment to remain challenging due to intermittent lockdown in various states and cities, while its unitary products business being a seasonal product could see higher impact of lockdowns.

Our view - The stock continues to trade at expensive levels of 31x FY23 EPS. Given the difficult business environment and intermittent lock down in various part of the country, there could be downside risk to the earnings estimates. We have Reduce rating on the stock with TP of Rs760.

Shares of BLUE STAR LTD. was last trading in BSE at Rs.834.2 as compared to the previous close of Rs. 836.3. The total number of shares traded during the day was 6044 in over 718 trades.

The stock hit an intraday high of Rs. 841.9 and intraday low of 819.05. The net turnover during the day was Rs. 5034975.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.


Other Headlines:

CESC Q4FY21 Results Review Report - Loss decline, strong CF make valuation attractive - HDFC Securities

White Goods & Durables - Analysis of pressure cooker market: TTK Prestige is key beneficiary - ICICI Securities

CESC - Good earnings in a challenging environment - ICICI Securities

Somany Ceramics - Walking the talk - ICICI Securities

DB Corp - Rise in newsprint price adds to risk - ICICI Securities

CEAT - Market share ambitions remain strong - ICICI Securities

Consumer Staples & Discretionary - Worm's world view #32: Conversations with paint dealers regarding price hikes - ICICI Securities

Oil & Gas - Oil, gas & spot LNG surge to bring gains for GAIL & OIL - ICICI Securities

Asset Management Companies - Positive trends to support earnings - ICICI Securities

Q4FY21 Result Update - Lemon Tree Hotels - ICICI Direct

Q4FY21 Company Update - Globus Spirits - ICICI Direct

Q4FY21 Result Update - DB Corp - ICICI Direct

Q4FY21 Result Update - Somany Ceramics - ICICI Direct

KEC International: Company Update - Building on diversification - HDFC Securities

LIC Housing Finance - Q4 FY21 Result Update - YES Securities

Entertainment Network Ltd - Beating on solutions business - ICICI Securities

Asahi India Glass - Operating leverage, product mix aid margins - ICICI Securities

Whirlpool of India - Market leading revenue growth - ICICI Securities

Lemon Tree Hotels - Wait for recovery gets longer - ICICI Securities

LIC Housing Finance - Stupendous growth momentum; needs to shore up provisioning and capital buffer - ICICI Securities

Quant Pick - Bank of Baroda - ICICI Direct

Company Update - Amara Raja Batteries - Investor Event Outcome - ICICI Direct

Q4FY21 Result Update - Bhel - ICICI Direct

Q4FY21 Company Update - NRB Bearings - ICICI Direct

CESC - Q4FY21 First Cut - ICICI Direct

Q4FY21 Result Update - Entertainment Network India - ICICI Direct

LIC Housing Finance Results Review Report - Balance sheet beefs up; P&L to stay soft - HDFC Securities

Jubilant FoodWorks 4QFY21 Results Review Report - Missing excitement; recovery priced in - HDFC Securities

BFSI Sector Update - MFI Consultation Paper Takeaways - Incrementally positive for NBFC-MFIs - HDFC Securities

Q4FY21 Result Update - JK Cement - ICICI Direct

Q4FY21 Result Update - Minda Industries - ICICI Direct

Stock Tales - Indo Count Industries - ICICI Direct

IPO Review - Krishna Institute of Medical Sciences Ltd - ICICI Direct

Q4FY21 Company Update - Greenply Industries - ICICI Direct

IPO Review - Dodla Dairy Ltd - ICICI Direct

Lemon Tree Hotels - Q4FY21 First Cut - ICICI Direct

Jubilant Foodworks - Q4FY21 investor call takeaways - YES Securities

Greenply Industries Ltd - Q4 FY21 Result Update - YES Securities

Whirlpool of India Ltd - Q4 FY21 Result Update - YES Securities

New India Assurance Report - CoRs disappoint yet again - HDFC Securities

Maintain BUY on Kajaria Ceramics - Performance shines through; outlook bright - HDFC Securities

Retain ADD on Deccan Cement - Volume strong; high other expense dents margin - HDFC Securities

Reiterate ADD on NHPC - Lower generation impacts earnings - HDFC Securities

Maintain BUY on JK Cement - Robust volume and utilisation - HDFC Securities

Maintain BUY on DLF - Gaining traction - HDFC Securities

Maintain BUY on Capacite Infraprojects - Marginal miss - HDFC Securities

DLF Ltd - Q4 FY21 Result Update - YES Securities

Greenply Industries Ltd - Q4FY21 first cut - YES Securities

Coal India - Coal makes a comeback - ICICI Securities

Kajaria Ceramics - Q4FY21 beat largely priced in - ICICI Securities


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020