Blue Star Q1 Review - Good Quarter Despite Inflationary Headwinds: Dolat Capital
BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
During Q1 FY23, Blue Star Ltd. exhibited 87% revenue growth (three year compound annual growth rate at 8%), mainly led by unitary products segment (up 122%), which was in line with Voltas Ltd.’s UCP (up 125%) and Lloyds (up 120%).
Room air conditioner category surged 163%, surpassed pre-pandemic sales.
We are enthused by the Ebit margin expansion of UCP segment (up 380 basis points), compared to Voltas (down 460 bps) and operating loss in Lloyds.
Management targets the segment to post 8-10% margins in short term. Room AC market share was maintained at 13.2%, despite price hike of 2-3% in April 2022.
Another price hike is likely in Q2 due to BEE rating change. In commercial AC, Blue Star gained market share in all product categories.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.