Blue Star bags orders worth Rs130cr
Central air-conditioning and commercial refrigeration major, Blue Star Limited has won
orders worth Rs130cr for air-conditioning and plumbing at the Chhatrapati Shivaji
International Airport (CSIA), Mumbai. This is a positive development for the company,
which is poised for strong growth over the next few years. At the end of 1QFY2011, the
order book for the company’s EMPPACS segment stood at nearly 1.1x FY2010 sales. We
expect strong sales growth, at a 22.3% CAGR, over FY2010–12E, on the back of improved
demand from the retail and commercial segments. Blue Star is currently trading at 16.2x
FY2012E earnings. We recommend Buy on the stock with a Target Price of Rs589.
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