Company Update: Blue Star - ACCUMULATE - TP Rs.684 - Kotak

In our recent meeting, the management has highlighted that the offtake of room ACs weakened in the month of May. This has led it to revise its growth expectations for the room AC sales in Q1FY18 and FY18 respectively. In view of this, we have revised our earnings forecast and target price to Rs 684 (Rs 727 earlier)

We have been bullish on Blue Star as we believe that the room AC sector offers potential for an extended period of high growth due to rising disposable incomes and under-penetration of product within the consumer durable basket. The stock has rallied strongly in the past six months and in view of the minor upside, we maintain "Accumulate", thereby advising investors to buy the stock on declines.

Shares of BLUE STAR LTD. was last trading in BSE at Rs.649.05 as compared to the previous close of Rs. 645.95. The total number of shares traded during the day was 3620 in over 297 trades.

The stock hit an intraday high of Rs. 649.95 and intraday low of 637. The net turnover during the day was Rs. 2336001.

Source : Equity Bulls

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