Blue Star Q3 Results Review - Strong Quarter; All Segments Driving Growth: Nirmal Bang

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.While Blue Star Ltd.'s topline was above our estimate by 5% due to higher-than-anticipated growth during festive season, Ebitda margin was in line with our estimate.Blue Star improved its market share by 25 basis points to 13.75%, with South, West and East (in that order) doing well. North region still has significant scope to grow (market share usually 200 bps lower).For FY24, while room AC industry is expected to grow by 15%, Blue Star’s is expected to grow by 20%. Competition in RAC segment is expected to remain intense going forward.We draw high comfort in its business model due to its strategy of chasing profitability and free cash flow, presence in high growth commercial refrigeration and high quality order booking from electronic manufacturing services and packaged AC systems (EPAC).While we remain structurally positive on the long term prospects of the business, the stock has had a good price run-up recently (up ~20% in past 40 days).As a result, we downgrade Blue Star to 'Accumulate' with SOTP based target price of Rs 1,215 (39 times blended price earning on FY26E earning per share). It should be accumulated at every dip as we believe it is a long term portfolio compounder..Click on the attachment to read the full report:.Shree Cement Q3 Results: Profit Rises 2.5 Times, Beats Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Blue Star Q3 Results Review - Strong Quarter; All Segments Driving Growth: Nirmal Bang

Medium term outlook for EMPS remains healthy.

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