{"id":373,"date":"2019-10-18T09:30:48","date_gmt":"2019-10-18T09:30:48","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=373"},"modified":"2019-10-23T12:16:10","modified_gmt":"2019-10-23T12:16:10","slug":"blue-star-the-demand-in-the-festival-season-is-expected-to-grow-12-yoy-in-fy20","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2019\/10\/18\/blue-star-the-demand-in-the-festival-season-is-expected-to-grow-12-yoy-in-fy20\/","title":{"rendered":"Blue Star- The demand in the festival season is expected to grow 12% YoY in FY20"},"content":{"rendered":"\n<p><strong>Update\non the Indian Equity Market:<\/strong><\/p>\n\n\n\n<p>On Thursday, NIFTY was up 1.07% to close at 11,586 level. The top performers in the index were yes bank (+15.47%), Tata motors (+13.27%) and Eicher Motors (+7.96%). HCL tech (-1.06%), VEDL (-0.97%) and Grasim (-0.59%) were the worst performing NIFTY stocks. Among the sectorial indices, NIFTY Auto (+3.13%), NIFTY PSU Banks (+3.0%) and NIFTY PVT Bank (+1.71%) were the top gainers. NIFTY IT (-0.41%) was the only negative performing index today as all the other indices were in green.<br><\/p>\n\n\n\n<p>Excerpts of an interview with B. Thiagarajan, managing director, Blue Star (From Livemint dated 17\/10\/2019)<\/p>\n\n\n\n<ul><li>According to Mr. Thiagrajan, the\nfestival season has been good. &nbsp;&nbsp;Summer season has been great. Starting with\nOnam, the Dussehra season and now leading up to Diwali the consumption seems to\nbe good and they are doing better than the market.<\/li><li>They are launching new TV\ncommercial, print and digital campaigns in an orbit-shifting move. It is\nbecause the market is doing well. <\/li><li>They have engaged Virat Kohli\nand it is a new orbit-shifting move as far as Blue Star is concerned.<\/li><li>Advertising expesnes will be\nsomewhere around 12% over last year in value terms. Considering the entire\nfestival season up to New Year perhaps starting from Onam. So far that figure\nis holding good.<\/li><li>They would like to grow faster\nthan the market. If the market is growing by 12%, they would aim to have 17%\ngrowth in the festival season. He expects between 10-12% market growth,\nanywhere between 15-17% Blue Star growth. This is in terms of room air\nconditioners.<\/li><li>In air conditioners the\npenetration levels are around 6%, there are many first-time buyers, low-end\nproducts are getting sold, and consumer finance is at an all-time high. <\/li><li>90% energy consumption reduction\nhas been achieved in AC. So it is no longer viewed as an energy guzzling\ndevice. Altogether, the monsoon season has ended well. Though there will be\nsome delayed crops, he thinks agriculture income will be good.<\/li><li>Therefore tier-3-4-5 markets\nalso should be doing well. This prompts him to say that anywhere between 10%\nand 12% growth should be taking place in the market.<\/li><li>Association with Virat will be\nfor 14 months. Just like Virat is good in T20, one day and test cricket, Blue\nStar is a player in corporate commercial; light commercial like shop, showroom,\nand boutiques and residential. They need the mass connect because tier-3-4-5\ntowns are doing well. They are proud of that association.<\/li><li>They will spend around \u20b9550\nmn out of the revenue target in this association. In terms of percentage of ad\nexpenses to revenue it is not going to make a difference because they are\ngrowing and this association is going to bring more sales, they are excited\nabout this.<\/li><\/ul>\n\n\n\n<p>Consensus Estimate (Source: market screener\nwebsite)<\/p>\n\n\n\n<ul><li>The stock price was \u20b9 826\/- as\nof close of 17-10-19 and traded at 39x\/ 29x\/ 23x the consensus EPS for FY20E \/\n21E \/ 22E EPS of \u20b9 23.1 \/28.3 \/36.1 respectively.<\/li><li>Consensus target price of \u20b9 805\/-\nimplies a PE multiple of 22x on FY22E EPS of \u20b9 36.1\/-.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Update on the Indian Equity Market: On Thursday, NIFTY was up 1.07% to close at 11,586 level. The top performers in the index were yes bank (+15.47%), Tata motors (+13.27%) and Eicher Motors (+7.96%). HCL tech (-1.06%), VEDL (-0.97%) and Grasim (-0.59%) were the worst performing NIFTY stocks. Among the sectorial indices, NIFTY Auto (+3.13%), [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[31,30],"tags":[],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/373"}],"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\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=373"}],"version-history":[{"count":2,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/373\/revisions"}],"predecessor-version":[{"id":375,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/373\/revisions\/375"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=373"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=373"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}