1
Firstcall India Equity Advisors Pvt Ltd
BLUE STAR LTD (BSL)
HOLD
Target Price: Rs.396.00
CMP: Rs.360.00
Market Cap.: Rs.32382.00mn.
Date: December 19, 2009
Key Ratios:
Particulars
FY09
FY10E
FY11E
OPM(%)
11
12
12
PAT Margin(%)
7
8
8
ROE(%)
49
34
28
ROCE(%)
78
55
45
P/BV(x)
8.82
5.82
4.21
P/E(x)
17.96
17.09
15.24
Key Data:
Sector
Capital Goods & Eng
Face Value
Rs.2.00
52 wk. High/Low
Rs.425.00/Rs.124.60
Volume (2 wk. Avg.)
26932
BSE Code
500067
SYNOPSIS
• Blue Star is India's largest central air-conditioning
company with an annual turnover of Rs 2574 crores.
• Blue Star primarily focuses on the corporate and
commercial markets. These include institutional,
industrial and government organizations.
• Order Book as on September 30, 2009 increased to
Rs 1,815 crore compared to Rs 1,555 crore as at
September 30, 2008, representing a growth of 17%.
• During
the quarter,
the Company
further
strengthened its foothold in the healthcare segment
with prestigious orders valued at Rs.15 crore.
• The Company introduced a new ducted split model
of 17 TR to cater to the medium commercial
segment.
• During the quarter company booked orders from
power project companies such as Siemens and ABB
for their air-conditioning requirements.
• The Company booked prestigious PCPA orders from
IBM, Hewlett-Packard, Essar Steel and Tech
Mahindra during the quarter.
• The topline of the company is expected to grow at
a CAGR of 5% over FY08 to FY11E.
Share Holding Pattern:
V.S.R. Sastry
Vice President
Equity Research Desk
91-22-25276077
vsrsastry@firstcallindiaequity.com
Dr. V.V.L.N. Sastry Ph.D.
Chief Research Officer
drsastry@firstcallindia.com
2
Firstcall India Equity Advisors Pvt Ltd