ICICI Securities: Blue Star’s Challenging Growth Environment Continues
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ICICI Securities Report
Blue Star’s FY20 annual report highlights the impact of events post Covid -19 related demand slowdown and its effect on growth. Company has shored up its balance sheet and raised non-convertible debentures amounting to Rs 3.5billion. The peak demand season has been hit; hence we believe FY21E will be a subdued year for the company.
Looking forward, Blue Star will try to diversify sourcing, focus on brand building with Virat Kohli (Indian cricket captain) as brand ambassador. We have rolled over our valuation multiple to FY22E earnings given the depressed performance expected in FY21E.
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