Blue Star Ltd - Operating metrics reloaded, Retain BUY - Emkay

Reco: BUY
CMP: Rs 156
Target Price: Rs 200

- Strong operational performance driven by (a) 19% YoY revenue growth in cooling products (b) 250bps YoY improvement in EMP&PAC margins to 5.9%

- Debt reduction further by Rs250 mn (at Rs3.5 bn). Interest expense declines 6% QoQ and 7% YoY to Rs117 mn

- Healthy order inflow at Rs7.9 bn – but challenges persists. Market expected to remain flat YoY for FY14E

- Continue to maintain BUY with continuous improvement in key operating metrics

Source : Equity Bulls

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