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Blue Star's Growth Story Remains Intact, Says Nirmal Bang; Sees 22% Upside — Check Target Price

Blue Star is well placed to ride room AC industry tailwinds and estimates 18% volume compound annual growth rate over the next five years, with its B2B businesses also showing strong growth momentum, believes Nirmal Bang.

Blue Star's Growth Story Remains Intact, Says Nirmal Bang; Sees 22% Upside — Check Target Price
Nirmal Bang has strong confidence in Blue Star's business model, particularly its disciplined focus on profitability and free cash flow generation.
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STOCKS IN THIS STORY
Blue Star Ltd.
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

Brokerage firm Nirmal Bang continues to believe Blue Star Ltd. is well placed to ride room AC industry tailwinds and estimates 18% volume compound annual growth rate over the next five years, with its B2B businesses — led by the data centre MEP order pipeline — also showing strong growth momentum.

Backed by these fundamentals and long-term growth drivers, Nirmla Bang has maintained its Buy rating with a revised SOTP-based target price of Rs 1,834, implying ~22% upside from the current market price of Rs 1,508.

ALSO READ: ICICI Prudential AMC Shares May Rise 23%, Says Motilal Oswal On Multiple Growth Drivers — Check Target Price

This implies a blended P/E of ~45.5x on FY28-29E blended earnings, broadly in line with its 10- year historical average.

The brokerage believe this valuation fairly captures key strengths-

  1. ~16% adjusted EPS CAGR over FY26–28E, and
  2. ~16% RoCE by FY28E.

Click on the attachment to read the full report:

Nirmal Bang Blue Star.pdf
VIEW DOCUMENT

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