Review

BLUE STAR 

Ticker : 500067
FV : Rs 2
52-Week H/L : Rs 887.00/425.00

We had previously recommended Blue Star in vol. 36, no. 01, dated October 28, 2019, when the scrip was trading at Rs 832.25. Blue Star offers end-to-end air conditioning and refrigeration solutions to its customers. The scrip was recommended based on its strong technical performance. On the consolidated financial front, net sales for Q1FY21 decreased by 60.26 per cent to Rs 626.02 crore as against Rs 1,575.45 crore reported for Q1FY20. Subsequently, operating profit also declined by 92.7 per cent to Rs 9.97 crore for Q1FY21 from Rs 136.51 crore for Q1FY20. It incurred a net loss of Rs 19.95 crore in Q1FY21, as compared to the net profit of Rs 75.44 crore gained in Q1FY20. Blue Star will gain from the launch of new products with virus deactivation technology (VDT) and ban on the import of air conditioners (AC) by Directorate General of Foreign Trade (DGFT). Hence, we recommend to HOLD.