For 4QFY2019, Blue Star posted results above our expectations on both top-line & bottomline
front. The company reported 18.5% yoy top-line growth and PAT was up ~199% yoy due to strong operating performance and one-time deferred tax credit recognized by the Company’s subsidiary Blue Star Engineering & Electronics Ltd.

Outlook & Valuation: We forecast Blue Star to report top-line CAGR of ~13% to `6,680cr
over FY2019-21E on the back of healthy demand growth in Air Conditioning and Unitary
Products division. On the bottom-line front, we estimate ~14% CAGR to `246cr owing to
improvement in volumes and better operating margins. We maintain our Buy recommendation on Blue Star with a Target Price of `867.

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