Result Update: Blue Star Ltd - ACCUMULATE - TP Rs.741 - Kotak

- Blue Star's (BSL) reported lower than expected EBITDA mainly due to contraction in EBITDA margins as a result of higher other expenditure related to spending on brand building for its water purifier business. This led to a miss in the reported profits as well. On the positive side, the company reported healthy order intake.

- 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 this, we temper our bullishness on the stock and maintain "ACCUMULATE", thereby advising investors to buy the stock on declines. Target price of Rs 741 (earlier Rs 729).

Shares of BLUE STAR LTD. was last trading in BSE at Rs.714.4 as compared to the previous close of Rs. 737.95. The total number of shares traded during the day was 29442 in over 1651 trades.

The stock hit an intraday high of Rs. 754 and intraday low of 711. The net turnover during the day was Rs. 21569817.

Source : Equity Bulls

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