Blue Star
limited is an Indian company which engaged in business of central air
conditioning and commercial refrigerator. It fulfils the air conditioning needs
of corporate and commercial customers and has commercial refrigeration
equipment ranging from water coolers to cold storage. The Company has also
started offering Electrical Contracting and Plumbing & Fire Fighting
Services. Blue Stars other businesses include marketing and maintenance of
hi-tech professional electronic and industrial products.
As regards the
segments it operates in following three major segments Viz- electromechanical
projects and packaged air conditioning, cooling products and professional
electronics. While in the cooling products segment we are bullish on
consumption led demand driven by factors like increased spending capability and
good new product offerings.
In the
Electromechanical projects segment the order book has been good at Rs 1776
crore as on June 2016. This is a good 19 percent appreciation on Y-o-Y basis.
We expect a very good order inflow going ahead as well led by the sectors like
IT & ITES, Infrastructure, Retail and office. We are confident that the economic
growth would be better in H2FY17 and hence all the segments it caters to would
stand beneficiary of the same.
On the financial
front the company posted strong results for June 2016 quarter. On consolidated
basis it posted a topline of Rs 1216.81 crore and bottomline of Rs 50.42 crore
as against Rs 1167 crore and Rs 14.31 crore posted in March 2016.
Management has also
provided positive outlook. Management suggested that “The normal monsoon in
most parts of the country is likely to enhance demand for unitary products,
especially from Tier 3/4/5 towns. Middle class consumer spends continue to be
on the rise and the festive season is anticipated to trigger greater sales of
consumer durables. Though the Electro-Mechanical projects business as well as
the Professional Electronics & Industrial Systems business remain
slow-growing due to lacklustre investment, the Unitary Products business is
expected to drive overall growth. The addition of new product lines such as
water purifiers, air purifiers and air coolers will further help the Company to
maintain revenue growth and better results for the rest of the year”.
With Strong order book, expected improvement in
margins and last but not the least traction in most of the segments it caters
to, expect a good run for Blue Star on bourses.
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