Why We Prefer Blue Star Over Other Listed Room AC Peers: 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.Havells India Ltd. registered a moderate topline growth of 12.0% YoY versus 26.8% YoY for Blue Star Ltd. versus 42.1% YoY for Voltas Ltd.Havells’ moderate topline growth was due to lower-than-expected growth in Lloyd (~25% of total revenue) at 5.9% YoY. Lloyd’ Ebit margin improved to 2.7% in Q4 FY24 versus -1.8% YoY Voltas’ UCP (~70% of total revenue) grew by 44.2% YoY. ~75% of UCP revenue comes from RAC – company sold 2 million plus units of RAC in FY24. UCP’s Ebit margin declined by 89 bps YoY to 9.2% in Q4 FY24. However, RAC’s Ebit margin improved by ~100 bps QoQ to ~10%. Blue Stars’ UCP (~50% of total revenue) grew by 34.8% YoY. ~70% of UCP revenue comes from RAC – company sold one million plus units in FY24. UCP’s Ebit margin declined by 16 bps YoY to 8.3% in Q4 FY24. However, Blue Star gained market share in RAC from 13.5% in FY23 to 13.75% in FY24. We remain positive about the long term RAC prospects for Blue Star. But, we remain cautious on Voltas for 12-18 months. We also remain cautious in terms of the sustainability of Lloyd’s margins over the medium term..Click on the attachment to read the full report:.Metal Sector Check - The New Brave World Of Indian Steel: ICICI Securities .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."

Why We Prefer Blue Star Over Other Listed Room AC Peers: Nirmal Bang

Blue Star, organically growing both topline and margin

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Why We Prefer Blue Star Over Other Listed Room AC Peers: Nirmal Bang

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