Fwd: Blue Star Q2FY12 Result Update; No respite; Retain Hold; Target: Rs 185

[Deepak Vaishnav]

 

Blue Star

No respite; Retain Hold

 

HOLD

 

CMP: Rs 197                                       Target Price: Rs 185

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n     Blue Star (BLSR) reported dismal  Revenues down 13% yoy, EBITDA%performance with net loss of Rs208 mn  down 740 bps yoy, forex loss of Rs194 mn, Interest cost up 129% yoy

n     EMP&PAC segment posts EBIT loss of Rs34 mn. Cooling Products margins drop 610 bps yoy to 5.4%. Secures orders worth Rs6.7 bn – YTD achieves 49% of FY12E target inflows

n     Gross debt rises 48% over Mar’11 to 6.2 bn while DER deteriorates further to 1.1X from 0.7X in Mar’11

n     Cut earnings estimates by 17% for FY12E to Rs9.2 and by 5% for FY13E to Rs15.0. Amidst ambiguity and risk to earnings in near term, retain Hold rating with price target of Rs185

 

Regards,

Pritesh Chheda

Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email: pritesh...@emkayglobal.com

Board No. : +91- 22- 6612 1212 | Extn. : 273 | DID : +91-22- 6612 1273 | Mob : +91 98208 07241

 

 

Prerna Jhavar
Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : prerna...@emkayglobal.com
Board No. : +91-22-6612 1212 | Extn. : 337 | DID : 6612 1337 | Mob : +91981935 0593 |