Update on the Indian Equity Market:
\nOn Friday Nifty closed 0.24% lower at 11,642. Among the sectoral indices Metal (+1.6%), Media (+1.5%), and IT (+0.2%) closed higher. Auto (-1.1%), Private Bank (-0.9%), and FMCG (-0.8%) closed lower. Bharti Airtel (-4.0%), Hero Motocorp (-3.1%), Maruti (-2.5%), closed on a negative note. Adani Ports (+4.5%), BPCL (+3.5%), and Coal India (+3.4%) were among the top gainers.<\/p>\n
Excerpts from an interview of Mr. Vir Advani, VC & MD, Bluestar with CNBC-TV18 dated 29th October 2020:<\/p>\n
\u25cf\tOn cost-cutting, Mr. Advani said the revenue recovered 72% as compared to the same quarter last year and EBITDA recovered 75 percent. The Company was able to sustain the margins. It was supported by overheads and changes in the cost structure.
\n\u25cf\tThe company has made some structural changes to the cost structure which will help to save costs in the current year as well as next year.
\n\u25cf\tOn business, he said in projects the recovery is still slow which ~ 60-65% of last year is. The project sites have not fully opened and there is a tight cash position in some customers.
\n\u25cf\tOn the retail side, he said there are some green shoots visible. For September month the recovery is high at 90%. The company is looking to reach a 90% level of last year\u2019s demand in Q3. The company expects a normal Q4.
\n\u25cf\tThe company has held on to the Market share of ~12.8% as they had strong sales in Tier II & III.
\n\u25cf\tE-commerce sales are doing well for the company.
\n\u25cf\tIn 1HFY20 the online sales were 3% of the company\u2019s sales, in 1HFY21 it crossed 13%. Water purifiers are doing better and ~75% of Water purifier sales happening online.
\n\u25cf\tThe company has made progress on the working capital front. The company generated Rs100 cr of positive cash flow on a standalone basis.
\n\u25cf\tOn Exports, he said the company has reached 90% of last year on an H1 basis and expects growth in FY21E on exports.<\/p>\n
Consensus Estimate: (Source: market screener and Investing.com websites)
\n\u25cf\tThe closing price of Blue star was \u20b9 629 as of 30-October-2020. It traded at 59x\/ 34x\/ 25x the consensus Earnings per share estimate of \u20b9 10.7\/18.7\/25.0 for FY21E\/ FY22E\/ FY23E respectively.
\n\u25cf\tThe consensus average target price for Blue star is \u20b9 566\/- which implies a PE multiple of 23x on FY23E EPS of \u20b925\/-.<\/p>\n
Disclaimer: \u201cThe views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Update on the Indian Equity Market: On Friday Nifty closed 0.24% lower at 11,642. Among the sectoral indices Metal (+1.6%), Media (+1.5%), and IT (+0.2%) closed higher. Auto (-1.1%), Private Bank (-0.9%), and FMCG (-0.8%) closed lower. Bharti Airtel (-4.0%), Hero Motocorp (-3.1%), Maruti (-2.5%), closed on a negative note. Adani Ports (+4.5%), BPCL (+3.5%), […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[31,30],"tags":[594,181,595],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1471"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=1471"}],"version-history":[{"count":2,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1471\/revisions"}],"predecessor-version":[{"id":1473,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1471\/revisions\/1473"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=1471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=1471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=1471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}