ICICI Securities: Blue Star’s Challenging Growth Environment Continues
Employees work on the outdoor units of split system air conditioners in Neemrana, Rajasthan, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

ICICI Securities: Blue Star’s Challenging Growth Environment Continues

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

ICICI Securities Blue Star Update.pdf


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