Sharekhan Suggests Midcap Consumer Durable Stock To Buy, Trading Near 52-Week High

Sharekhan has come up with new stock to buy from the Consumer Durable sector. The brokerage has assigned a "Buy" on the stock of Blue Star Ltd with a target price of Rs 1,655/share. The share price of the stock is likely to jump up to 15% from its current level considering the given target price by the brokerage. It is a midcap stock having a market capitalisation of Rs 13,862.46 crore. Check below to know more:

Blue Star's Stock Performance

The stock of Blue Star last traded at Rs 1,439.70/share on the NSE. The stock is currently trading near its 52 week high, which is Rs 1,493.95/share, recorded on 23 February 2023. Its 52 week low is Rs 859.05/share, recorded on 4 July 2022. 

The stock in a week has fallen 1.23%. It has gained 6.02% in 1 month and 17.02% in 3 months, respectively. The stock gave 36.69% positive return in 1 year, 79.76% in 3 years and 89.67% in 5 years, respectively.

Maintain Buy with a revised PT of Rs. 1,655

According to Sharekhan, Blue Star has emerged as a leading player in the RAC retail and institutional businesses. It has a strong hold in other cooling products like commercial refrigerators, chillers; etc. "We expect the growth momentum to continue given sectoral tailwinds in terms of soaring temperatures across India and changing consumer lifestyles. Similarly, the EMPS segment's growth prospects are promising, given a robust order book and continued traction in order inflows in domestic and international markets. We expect revenue/PAT to clock a CAGR of ~19%/~34% over FY23-25E. At CMP, the stock trades at ~29x FY2025E EPS. Hence, we maintain Buy rating on the stock with a revised PT of Rs. 1,655," the brokerage has said.

Key Risks - An increase in input costs could put pressure on margins. Intense competition across segments is a key concern.

Disclaimer

The stock has been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.