Blue Star – This Company is cool!
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Emerging companies - Mid caps that can become large cap
Forum Discription: These are companies operating in growing markets having have certain niches or specific attributes like new sector plays. These are emerging multibaggers with high risks and high rewards.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=451
Printed Date: 03/May/2025 at 2:25pm
Topic: Blue Star – This Company is cool!
Posted By: basant
Subject: Blue Star – This Company is cool!
Date Posted: 05/Oct/2006 at 10:29am
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Blue Star – This Company is cool! Blue Star (CMP Rs 137) is India's largest central air-conditioning and commercial refrigeration company, The Company’s strategy had been to focus on the corporate and commercial establishments rather then to get into the crowded domestic homes segment (this is now being slowly targeted). The major growth drivers for the company have been from the various segments of the service sector like Shopping malls, IT and ITES space, Restaurants, multiplexes, office and commercial establishments, airports, banks, hospitals, and boutiques. Blue Star has business alliances with world renowned technology leaders such as Rheem Mfg Co, USA; Hitachi, Japan; Eaton Williams, UK; Thales –Security, UK; Jeol, Japan and many others, The major customers of the company include names like Pantaloon, Vishal Mega Mart, ICICI Bank, ING Vysya, Centurion Bank, Kotak Mahindra and ACC. During the last quarter the company signed companies like Reliance Retail, Levi’s Strauss, Gitanjali Jewelers and Glaxo Smithkline Blue Star manufactures a number of cooling products like water coolers, bottled water dispensers, deep freezers, cold storages, bottle coolers and ice cube machines. In addition to this Blue Star engaged in the import and distribution cum maintenance of professional electronic and industrial equipment and systems. These include turnkey engineered solutions in the areas of banking, telecom, healthcare, defense, pharmaceuticals, manufacturing and R&D. Considering the sustained growth in business, capital expenditure is expected to increase in order to expand and upgrade manufacturing and R&D capabilities.
The Company appears adequately priced but the high RoE would make it possible for the company to maintain its high growth rate. The company has increased its revenues from Rs 504 crores to Rs 1171 crores in the past 4 years at CAGR of 23.46%. I would think that the company could continue with this pace of growth at least till 2010. Normally the centralized air-conditioner business segment makes up for a major chunk of the company’s revenues. (Evident from the sales break up for FY 07 Q1given below) followed by the cooling products division which is growing at a much faster rate. During the last quarter the company launched the “Hiper Split air conditioners”- energy efficient equipment. The Himachal facility shall be manufacturing room air conditioners and the company expects the cooling products business to contribute significantly to the overall results for the year.
Blue Star also deals with a range of cold chain equipment which should benefit from the ongoing boom in the segment, Blue Star is well positioned to leverage on the upcoming opportunities. The company has also started exporting to countries in North America Middle East and Recommendation: I have a personal liking for the pick axe industry when the public is busy digging for gold. Whether Reliance succeeds or Pantaloon is an answer we can only debate but irrespective of that Blue Star is a huge play on the growing consumerisation and off shoring capabilities of Source: Company feedback and media reports ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Replies:
Posted By: investor
Date Posted: 05/Oct/2006 at 10:40am
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There is a smallcap IT company listed called Blue Star Infotech. By any chance does it belong to the same group as the A/C company? |
Posted By: BubbleVision
Date Posted: 05/Oct/2006 at 11:24am
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Great writeup on bluestar...
Point to note is that BlueStar has a weightage of 12% (approx) in the BSE Consumer Durables Index, implying that any one looking at this sector will have to have an exposure to this stock.
Investor -- to my knowledge there is no link with Bluestar infotech.. but i could be wrong ------------- You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer! |
Posted By: shahji
Date Posted: 06/Oct/2006 at 1:39pm
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Why not voltas? ------------- A investor who wants to grow. |
Posted By: kulman
Date Posted: 06/Oct/2006 at 1:49pm
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Here are some more facts:
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 06/Oct/2006 at 2:04pm
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Voltas is also an excellent choice. Just waiting for fundmamentals to catch up before writing. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: investor
Date Posted: 06/Oct/2006 at 2:09pm
| thanks kulman for this info. Never knew all this. |
Posted By: reema
Date Posted: 06/Oct/2006 at 9:09pm
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Mr. basant why is it that you never talk about promoter holding and FII holding 52 week high/low bonus issue etc in any of your reports. They are written nicely but generally I see reports carry these important data all the time. Thanks. ------------- You should try to add wealth not multiply it |
Posted By: Ajith
Date Posted: 06/Oct/2006 at 8:13am
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Blue Star is a clear winner-a company that will get the spin-off benefits of the real estate,SEZ,cold storage,retail.. booms. ------------- Ajith |
Posted By: basant
Date Posted: 06/Oct/2006 at 9:28am
Promoter holding - How does this matter. People look at this to find out the promoter's confidence in the business but I think that it is better to try and understand the business yourself. In fact I rarely look at the holdinbg part. Infy has a holding of less then 10% while Videocon and Essar has 4 times more then that!
FII holding - Broadly does not throw much light. FII's were invested in IFSL a company which went belly up.
52 week high/low - Historic price has no relevance to what the company could do in the future.
Bonus issue - Please see the section http://www.theequitydesk.com/forum/forum_posts.asp?TID=408 - Bonus and splits . ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: basant
Date Posted: 11/Oct/2006 at 12:23pm
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During the last few months Blue Star has entered into some critical agreements with:
The company stands on a huge order book of Rs 700 crores. The company’s new initiatives have been finding acceptability and it should do an EPS of Rs 7 which is discounted at less then 20 times at the current market price of Rs 135.The stock should double up in less then 3 years. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: basant
Date Posted: 31/Oct/2006 at 10:28pm
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For the September quarter Blue Star reported some real good numbers sales increased by 32.31% to Rs 376.72 crores from Rs 284.72 crores y-o-y while net profits increased 58.75% to Rs 18.40 crores from Rs 11.59 crores.
There was an expansion in operating margins by 183 basis points to 8.73%.
.The main contributor to revenue was the central cooling business which grew at more then the market average (meaning they increased market share). This segment which contributes to 73% of revenue grew at 32% y-o-y while other segments like the professional Electronics and Industrial Equipment business grew 98% and the cooling products division grew at 20%..
During the quarter the company received orders from several new places like the Nagpur International airport, Glaxo, Zydus, Nasik City Mall etc.
For the current year the company should report an Eps of close to Rs 8 per share. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: manishdave
Date Posted: 31/Oct/2006 at 11:41pm
| Any idea how much is maintenance income? |
Posted By: basant
Date Posted: 31/Oct/2006 at 9:51am
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Did not see that in the results but that should increase with each passing year. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: basant
Date Posted: 03/Nov/2006 at 3:04pm
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In tha hullaballo of TV 18 did anyone realise that Blue Star is up about 27% since we talked about it on this forum.It is currently trading at Rs 175. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: investor
Date Posted: 03/Nov/2006 at 3:14pm
| Yes, basant it is on my watchlist and i have been noticing this, but was too busy focussing on buying TV18 that i lost focus on this one! |
Posted By: kulman
Date Posted: 03/Nov/2006 at 7:32am
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For those with patience, here is interesting voice recording of Blue Star's management talking to various Analysts from Brokerages/MFs.
http://www.moneycontrol.com/news/video/newsvideo.php?autono=248664 - Blue Star’s con-call on Moneycontrol.com
Basantjee, I could board this train while it was still in the railway yard, even it was nearly empty at the platform. Now that the train is catching speed, I can see biiig crowd...by the way, is it possible for you to inform me when to disembark? ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 03/Nov/2006 at 10:40am
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Great to hear that you are in Rajdhani. My sense is that the journey should be good do not worry about food (dividends) enroute 1000 days, maybe when you get down Instead of driving home in a Maruti you could go back in a chauffer driven Accent.
WOuld keep updating on this company. Excellent company to hold in the pick axe theme. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: nikhil090
Date Posted: 23/Nov/2006 at 10:57pm
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Hi,
I have always been in a conundrum on valuing the company. When you see the company, past performance, future outlook and size of the opportunity, I feel comfortable. But the important point is whether it makes good investment at the current price. This decision depends hugely on the kind of PE multiple market will assign to the company, depending on various factors. It can vary from 10 to 100.. If this decision is inaccurate then either we buy expensively at the price or we miss the opportunity to buy the stock. For example Blue star should do Rs 10/share EPS this year ending Mar 2007. At current price of 160, it is getting discounted 16 times. Now whether this 16 times is cheap, costly or just ok is the question. The opportunity for the company is that it may grow at 25%/year atleast for the next 3 years.
Pls suggest some ideas on the PE issue.
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Posted By: kulman
Date Posted: 29/Nov/2006 at 10:15pm
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http://www.business-standard.com/common/storypage.php?autono=266293&leftnm=1&subLeft=0&chkFlg= - Blue Star to expand overseas
Blue Star, one of the leading central air conditioning companies in the country, is expanding its international presence.
The company, with the annual turnover of Rs 1,178 crore, is considering a joint venture in Qatar to undertake projects such as offering specialised solutions for commercial buildings and cold storages, hospitals and hotels among others.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 14/Dec/2006 at 11:08am
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Today's Business standard carries a good article as to the kind of growth these AC companies would see because of the development of some 600 malls across the country over the next 3-4 years. The total market is estimated to be around Rs 7500 crores for this period. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kulman
Date Posted: 15/Dec/2006 at 8:15am
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Such news articles help build conviction, don't they? Blue Star would shine brighter....
------------------------------------------------------
But Basant jee, I've a basic question: won't those 600-odd malls need timber? Then why that Birla company's stock is beaten down?
Recently I overheard following mantras during a Puja in my neighbour's (Mungerilal, of course) apartment:
Om Mangalam Bhagwan Vishnu....
Om Timberam Bhagwan Vishnu.....
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: PrashantS
Date Posted: 15/Dec/2006 at 10:46am
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hahaha kulman ji......well yea this mangalam timber is pretty famous.........you knwo i a forgot to mention somedays ago i met a guyfrom mumbai........he was working in some investment company.so i asked for some investement calls...........those days i never use to follow too much of RD he was telling me only three scrips 1) buy international travel hous ..travel boom 2) buy Nucleus...... 3) buy balaji these guy just guys blindly follow RD...again Rd is a great investor but ..........but too much fan following......... oh i forgot the TImber too......mangalam timber.......but really better to make mistakes and learn than follow blindly.............ultimately it is all about money making and learning ......and not blindly following ........ To me stocks and market and the whole thing is about learning different businesses and see what the creative mind can do......... but Kulmanji tussi great ho........very good sense of humour |
Posted By: basant
Date Posted: 23/Dec/2006 at 1:37pm
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This is a nice synopsis of an interview with Blue Star
http://capitalideasonline.com/articles/index.php?id=1261 - http://capitalideasonline.com/articles/index.php?id=1261 ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: basant
Date Posted: 10/Jan/2007 at 3:08pm
Amidst the carnage Blue Star was up a cool 6.45% at Rs 220. You surely seem to be enjoying that cool breeze having got in at Rs 135 odd. So while we were celebrating and dancing about Tv18 and Educomp you have made a cool 60% by staying away from the limelight. Congratulations. It was really (cool)man
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kulman
Date Posted: 10/Jan/2007 at 3:43pm
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Sir Jee.....I got that.....thanks.....
Circuit called me this afternoon while I was driving to advise me: "Acchaa munafa ho gayaa, abhi bech ke baad mein neeche kharido....market 700 points aur girne waala hain, Infy kaa result shaayad kharaab aayega aisa rumour hain!!"
I recalled this song: "Muzh ko thund lag rahi hain, mere paas tu naa aa!"
---------------------------------
On a serious note, has anyone any clue about reason behind this rise?
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 10/Jan/2007 at 3:48pm
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On a serious note, has anyone any clue about reason behind this rise?
___________________________________________________________
Experts were busy looking for reasons for today's fall once they are able to find that (when it is no longer relevant) they would look and explain Blue Star's rise. Generally I think that for non greedy investors it is a solid hold for the next 2-3 years irrespective of how much it corrects in the interim.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kulman
Date Posted: 12/Jan/2007 at 10:54am
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I like enjoying ice-cream especially during winter. There are lot of new outlets sprung up during the past couple of years in Pune. Most are local players. One amongst them is a brand from Gujarat called "Shreeji" which has over 15-20 franchises here & is fast becoming very popular.
Last night after dinner, we drove to one nearby ice-cream "Shreeji" parlour. Quality of ice-cream is okay and acceptable.
After chatting with that franchisee for about 10-15 minutes, I realised that in that store he had 3 commercial refrigerators from Blue-Star and was praising company's after-sales-service, the product quality and most importantly the energy efficiency of those refrigerators compared to other brands.
No wonder the company's tag line reads: "Cooling solutions to help your business do better"
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 12/Jan/2007 at 11:12am
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Last night after dinner, we drove to one nearby ice-cream "Shreeji" parlour. Quality of ice-cream is okay and acceptable.
After chatting with that franchisee for about 10-15 minutes, I realised that in that store he had 3 commercial refrigerators from Blue-Star and was praising company's after-sales-service, the product quality and most importantly the energy efficiency of those refrigerators compared to other brands.
__________________________________________________________
Indian consumer and Peter Lynch at work!!! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: basant
Date Posted: 29/Jan/2007 at 4:41pm
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BlueStar net profits for Q3FY07was at Rs 11.5 crore versus Rs 6.9 crore. The revenues increased to Rs 370 crore versus Rs 264 crore, YoYThe net profit thus rose faster at 66.67% compared to a 40% growth in sales.. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kulman
Date Posted: 14/Feb/2007 at 11:14pm
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http://www.bseindia.com/qresann/news.asp?newsid=%7bC46D897B-2C6B-4543-B175-766D3E9E7A0E%7d - Blue Star Ltd has announced that the Company is setting up a major manufacturing facility at Wada (Thane District) in Maharashtra. The factory will be located over an area of around 35 acres and will manufacture both air-conditioning and refrigeration equipment for the domestic and the international markets. Phase I of the factory will be completed in March 2008, although partial production will begin from December 2007. The Company has been growing at over 25% for several years resulting in substantial demand for the Company's manufactured products. To cope with this growth, the three older plants at Thane, Bharuch and Dadra have been steadily expanded and modernized and a 4th factory built in 2005-06 in Himachal Pradesh. The unabated economic growth and positive business outlook for the Company has now created a need for a 5th manufacturing facility. According to Satish Jamdar, Executive Director of the Company, "A task force comprising senior managers evaluated several locations in the country for our fifth factory. Wada was chosen for its centralized location as well as its proximity to the Mumbai Port. To cope with the huge demand for our manufactured products, we plan to invest about Rs 35 crores in FY 2007-08 on Phase I of this plant. In the meanwhile, we will continue to upgrade our existing facilities". ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: Mohan
Date Posted: 14/Feb/2007 at 1:59am
Hi Kulman,
Which one did you go to ?
I really miss Pune. My favourite place in the world. ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: kulman
Date Posted: 14/Feb/2007 at 8:38am
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Near Deccan Gymkhana area!
U r right Mohan jee, a quintessential Puneri also feels that this is the best place on earth & nothing else matters! ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: Mohan
Date Posted: 14/Feb/2007 at 11:13am
Oh Ho ... Deccan Gymkhana... Jangli Maharaj Rd....
Getting all misty eyed.... You said it Kulman
I lived near the Palace on Nagar Rd
------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: Mr. V
Date Posted: 09/Mar/2007 at 8:30pm
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Blue Star has been one of my core holdings for the last 3-4 years. They have been primarily focussing on air conditioning for malls, offices and other commercial spaces.
Blue Star management has also identified Cold Room storage as another key area which will contribute to the topline.
Here is a report on their deal with Reliance Retail.
http://www.financialexpress.com/fe_full_story.php?content_id=157163 - http://www.financialexpress.com/fe_full_story.php?content_id=157163
The cold rooms, located centrally, will help Reliance Retail to preserve the perishable products brought in from farms for distribution through Reliance Fresh outlets. The initial order for 12 equipments is worth Rs 10-12 crore. Reliance has made a foray into the retail segment by rolling out 17 Reliance Fresh outlets in Hyderabad. The company is eyeing 784 cities and 6,000 towns in the country for its outlets.
The demand for cold rooms, the size of which will vary from 1,000 sq ft to 15,000 sq ft, is expected to grow by 50%. At 1 crore a room, there seems to be a significantly large market for Cold rooms and Blue Star seems ideally placed to take advantage of it.
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Posted By: Mr. V
Date Posted: 09/Mar/2007 at 8:36pm
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Another news article about Blue Star's foray into Milk chilling units and other new areas.
http://www.financialexpress.com/fe_full_story.php?content_id=157197 - http://www.financialexpress.com/fe_full_story.php?content_id=157197
Belgium-based Packo Group and Blue Star Ltd are soon entering into a technical agreement for the assembly and manufacture of milk chilling units at Blue Star’s plant in Bharuch.
This is to supply milk chilling units under the Blue Star-Packo brand to Reliance Retail, the Bharti group, the Tatas, Amul, Britannia and various milk cooperatives in India.
Blue Star, undoubtedly, is making a strategic shift in its business approach and is looking at new sectors and opportunities. Blue Star, which currently manufactures modular cold rooms and chest-type deep freezers, will now offer a complete basket of solutions for supermarkets and quick food services through a strategic alliance with ISA, Italy. Jamdar explained, “This year, Blue Star Ltd will start manufacturing ISA products in India, in partnership with ISA, Italy for providing a wide range of supermarket and food refrigeration soutions. So far, ISA products have been imported and sold under the Blue Star-ISA brand.”
Manufacturing the items instead of importing them will definitely improve the margins. |
Posted By: basant
Date Posted: 09/Mar/2007 at 8:59pm
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Amidst all the noise this is one stock which never gets discussed on business channels/general discussion. It has performed in line with expectations and continues to hold itself quite well in this carnage. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Mohan
Date Posted: 09/Mar/2007 at 10:10pm
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This is one of the dull boring stocks that Buffet would definitely like.
Consistent performer. ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: nikhil090
Date Posted: 09/Mar/2007 at 10:31pm
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Right. Some wonderful things happening for Bluestar:
1. Less researched and less owned stock - MF and FII holding together account for 16% including national insurance companies.NO big mf/fii attending the conf calls. 2. Good growth with visibility for the next 3 years. 3. High ROE and ROCE - management committed to increasing shareholder value 4. Strong brand equity and leadership position in the cooling solution industry 5. MCAp still around 1.2 times sales - coming closer to Havell's I think that it remains a good buy and if the price falls to @180, one can add some quantities.. |
Posted By: kulman
Date Posted: 16/Mar/2007 at 12:00pm
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http://www.bseindia.com/qresann/news.asp?newsid=%7b5BB90D94-3360-413C-835C-C0E15A48C83B%7d - Blue Star Ltd has informed BSE that the Board of Directors of the Company at its meeting held on March 16, 2007, has declared an Interim Dividend @ Rs 2.40 per equity share of Rs 2/- each (120%) for the year ending March 31, 2007.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: Mr. V
Date Posted: 16/Mar/2007 at 1:09am
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I don't understand why companies that operate in high growth segments and expanding pay dividends.
I am sure they could have better utilized the cash instead of doling it out to shareholders.
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Posted By: basant
Date Posted: 16/Mar/2007 at 1:39am
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Good point. Bharti has yet not declared a dividend in its few years of operating history! Berkshire Hathway also has never declared dividends or stock splits!
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kanagala
Date Posted: 16/Apr/2007 at 10:08am
| Stock splits helped brokerages more than investors in US as the brokerage was charged based on number of stocks traded. |
Posted By: Rinku
Date Posted: 17/Apr/2007 at 6:34pm
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Basantiji Nikhil has written "Blue Star is Less researched and less owned stock - MF and FII holding together account for 16% including national insurance companies.NO big mf/fii attending the conf calls."
Is it true? What do you think?
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Posted By: Mr. V
Date Posted: 17/Apr/2007 at 7:44pm
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Shareholding details from http://www.bluestarIndia.com - www.bluestarIndia.com
Mutual Funds, UTI & Insurance companies hold 15.04%. HDFC has a significant exposure and other funds like Sundaram, Birla & ICICI have small exposures.
CLSA has a stake of 2.31%.
Individual shareholder holding nominal share capital up to Rs 1 lakh 26.94%
Individual shareholder holding nominal share capital > Rs 1 lakh 10.96%
This means there is a significant amount of free float and as an when the stock catches the eye of FIIs and other Institutional Investors, expect some PE rerating.
I also noticed that Blue Star has completely revamped their website and put up transcripts and details of their conference calls, analyst meets and other investor related information. This might mean that the management is seriously courting investors .
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Posted By: basant
Date Posted: 17/Apr/2007 at 8:11pm
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This is much like the unsung hero. They have delivered consistent performance year after year yet it is funny that no one talks about this company. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Rinku
Date Posted: 23/Apr/2007 at 11:20pm
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Basantiji how do you compare Voltas with Blue Star?
A well-diversified and relatively unique business in the engineering sector distinguishes Voltas from other listed companies. A strong position in the electro-mechanical products business, attractive margins from the engineering and agency segment and expected turnaround in the unitary cooling products division augur well for Voltas' earnings growth.
With a sound footing in West Asia, the company is well-poised to capitalise on the construction boom and the resultant cooling systems demand in the region. Voltas appears to be a good investment option in the engineering segment from a three-year perspective. At the current market price, the stock trades at about 18 times its likely earnings for FY-08, based on an expected 30 per cent annual growth in earnings from FY06-08. The marginal premium vis-ŕ-vis other players appears justified, given the diversified nature of the business and the few listed players. Business Voltas is an air-conditioning and engineering solutions provider. While the company's primary business is providing comfort air-conditioning requirements for homes and offices, malls, airports homes and multiplexes, it also operates in areas which require monitoring of temperature, humidity, or treatment of air. The users in this segment include steel and power plants, petrochemicals facilities and laboratories. The company is also into manufacturing of material handling equipment and provides agency services for selling textile machines and construction and mining equipment. This diversification should provide cushion for the company against any slowdown in any one segment. Electro-mechanical segment, the driver The Indian heating ventilation and air-conditioning (HVAC) market is dominated by Voltas, Blue Star and Carrier. The demand for office space, largely driven by the IT and IT-enabled service companies, has led to huge potential for the HVAC players. With few organised players in this sector, the above-mentioned companies should, among them, share the business opportunities. This apart, the increasing number of malls and multiplexes and the upcoming Special Economic Zones offer much scope for the HVAC business. Voltas has already executed projects in these segments. While Voltas appears evenly poised with competitors in making gains from the above-mentioned prospects, the company has an edge in the following areas of its business: International strength: In the overseas market, Voltas is better known as a mechanical, electrical and public works contractor, including HVAC services. Of the total current order-book of Rs 2,400 crore, about Rs 1,300 crore is derived from international markets. Among its overseas markets, Voltas can be expected to benefit from the construction boom in West Asia. This region accounted for 27 per cent of the company's FY-06 revenues. The company's ability to compete with top players in the region such as the Emirates Trading Company has enabled it to become a sub-contractor for Bechtel. Potential in airports: Voltas won projects of the value of Rs 160 crore in electro mechanical projects for the Hyderabad airport and appears keen to participate in the bidding for Mumbai and Delhi airports as well. With the upgradation and modernisation of airports in India gathering pace, Voltas may see increased bidding opportunities in this area. The company's earlier airport projects such as the Bahrain International airport and the new airport in Hong Kong, are likely to serve as reference points and give it the edge. Key role in the retail story: India's success in the retail space may well depend on the availability of cold storage and warehousing solutions. Since a chunk of the investments in this area is in fresh food, this would require support in terms of cold chains, refrigerated transport and industrial refrigeration. Voltas, which is already an established player in this field, has further strengthened its position through a tie-up with Netherlands-based Besseling Group. The latter is a turnkey solutions provider for storage of horticulture. Voltas has secured an order from Adani Agri-Fresh for refrigeration systems. We expect Voltas to benefit from this segment, which may also offer slightly better margins than regular HVAC projects. Improvements in other divisions The engineering agency division of Voltas has over the last three quarters shown a propensity to make an increasing contribution to revenues. For the quarter ended December, 20 per cent of the revenue came from this division. Increased demand for construction and mining equipment and in-house manufactured forklifts are likely to drive revenues. We view this as a positive, as the operating margins from this division are far superior to the 6-7 per cent OPM in the electro-mechanical segment. The company's unitary division, which consisted of room air-conditioners and refrigerators, was a drag on the company's margins. Now, with the shutting down of this unit in Hyderabad and its relocation in tax-friendly Uttaranchal and the closing of the unprofitable refrigeration section, may see some improvement in margins. The company, among the top players in the room air-conditioning systems, has seen a 30 per cent growth over FY-07 in this area. We expect the increasing purchasing power of consumers to create robust demand for the product. Voltas is a low-debt company with large cash coffers. Any growth through the inorganic route could be earnings accretive without much equity expansion. Further, any plan for liquidating real estate, after it shut down the Hyderabad unit, may unlock further value. We have not factored these positives in our valuation.
Risks: The OPM of Voltas, which is at less than 6 per cent, may take a hit if there is a hike in the price of raw material such as copper and aluminium, given that a number of its international contracts operate on a fixed price basis. The company faces stiff competition in the room air-conditioning segment from Chinese products and the unorganised market. This may cause pressure in pricing and, consequently, margins. Any political unrest in West Asia or slowdown in construction in the region would affect revenue flow for Voltas. |
Posted By: basant
Date Posted: 23/Apr/2007 at 11:24pm
|
I think both are good. Blue Star is focussed whereas Voltas is getting into a lot of new and interesting businesses. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: basant
Date Posted: 05/May/2007 at 9:16am
|
AFter the recent results Blue Star seems to have justified its valuations. It should do an EPS of Rs 11 for Fy 08 and more then Rs 15 for Fy09.In the current year capacities have been added and the company looks all set to reap benefits of operating leverage.
The best thing about Blue Star is its return ratios - in excess of 35% that emans company can keep growing at that rate and a bit beyond without any external financing.
Motilal estimates some interesting business opportunity for Blue Star:
IT/ITES 1800
Retail chains 2400
COld Chains 10000
SEZ 5400
TOTAL 19600
WHile companies like Pantaloon can get into allied activities like logistics (lack of entry barrier) they cannot get into manufacturing of airconditioners indicating that companies will grow with the industry unlike some sectors where the industry grows but the companies do not.
A few years down the line major share of their revenues would come in from Annual maintenence services of airconditioners already installed.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: smartcat
Date Posted: 06/May/2007 at 12:56pm
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Blue Star and Voltas has been in my 'watchlist' for over 3 years now. The reason why I don't have it in my portfolio is because of their low net profit margins. My concerns -
- Blue Star NPM for FY07 is slightly above 4% (Revenues Rs. 1,585 crores, Net Profits Rs. 69 crores) .
- Voltas had a negative PBIT magins in 3QFY07 for its cooling products business [Source: Equitymaster]
- Any increase in raw material prices (copper etc) might affect its NPM margins further. Because of high competition and nature of the end user (retail, builders etc), it would be difficult to pass on the costs to the customer
The dangers of being invested in low NPM businesses is - any adverse news/event/temporary change in scenario can result in a few quarters of losses or very negligible profits. Eg: the retrospective tax on construction companies depressed the results of low NPM construction companies like HCC.
Are my concerns valid?
|
Posted By: basant
Date Posted: 06/May/2007 at 3:09pm
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Net profit margin is just one of the tools of financial analysis. We should concentrate on RoE and RoCE and not on margins. Most of the people would have missed some serious 50 baggers by looking at the margins. One of the most effective tools of a company is the Dupont analysis which decomposes RoE into its various ingredients for example a low margin with high asset turnover is as good as high margin with low asset turnover.
Remember Broadcasting and telecom companies have high margins but low asset turnover.
Take a look at this section for a stuydy on the duponmt analysis.
http://www.theequitydesk.com/du_pont_analysis.asp - http://www.theequitydesk.com/du_pont_analysis.asp
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Mr. V
Date Posted: 09/May/2007 at 8:49pm
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Blue Star has come out with its 2007 results. No surprises, the company seems to be in cruise mode.
Revenues up by 36% from 1178 cr to 1607 cr.
Net Profit up by 45.5% from 48.9 cr to 71.18 cr.
07 EPS is Rs 7.91
The company has shown a CAGR of 30% between '04-'07.
What is heartening is that the ROE has consistently improved from '01-'07
The stock currently trades at a PE of nearly 30 and probably discounts its current results. If Blue Star can continue to grow at the current rate then it can be a very steady 30-35% compounder.
|
Posted By: us121
Date Posted: 20/Jul/2007 at 12:05pm
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source: indiaearnings.com -------
------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: nikhil090
Date Posted: 20/Jul/2007 at 9:38am
| Fantabulous results from voltas for this quarter - engineering is rocking.. Blue star should also come out with good results.. |
Posted By: Mr. V
Date Posted: 25/Jul/2007 at 9:14pm
|
Blue Star has posted excellent results for Q1 FY08
Revenues up 48% from 312 cr to 462.32 cr
PAT up 205% from 7.3 cr to 22.32 cr
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Posted By: Mr. V
Date Posted: 25/Jul/2007 at 10:03pm
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EBITDA margins have gone up by 300 bps and NP margins by 250 bps.
Blue Star should be able to do Rs 13 - 14 EPS in FY08.
|
Posted By: basant
Date Posted: 25/Jul/2007 at 10:18pm
I still maintain that this is the best bet to play the Indian services story. Growth stocks will remain expensive and so is with BlueStar. If anyone wants a cheaper grade he could buy Hitachi or whatever. Was at the Big Bazzar store today and the Store manager informed me that they are changing all their AC's since it has been 5 years since installation - new Ac's are being procured from Blue Star because the initial ones ran vey well. So the scope is humongous.
I can already see Kulmanji celebrating on this one. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tigershark
Date Posted: 25/Jul/2007 at 10:33pm
|
on the margin front blue has on sales of 462 crs done a net of 22crs hitachi on 168 crs has done a net of 17.3 crs question--- can cos in the same industry have different margins and if so why? ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: kulman
Date Posted: 01/Aug/2007 at 9:31pm
Those interested may download this interesting http://www.bluestarindia.com/investors/images/AnalystMeetPresentation07-08.pps - Analyst Meet Presentation 07-08 (the size is >2MB) which details the opportunities for the company in various sectors such as Retail, IT, ITES, Telecom.
Orders booked during Q1FY08The Company booked several prestigious orders during the quarter including orders from:
The carry-forward order book position as on June 30, 2007 stood at Rs 984 crore as against Rs 688 crore on June 30, 2006. ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: kulman
Date Posted: 03/Aug/2007 at 6:03pm
------------- Life can only be understood backwards—but it must be lived forwards |
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Posted By: vivekkumar_in
Date Posted: 03/Aug/2007 at 2:36am
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The Analyst meet presentation is excellent..Clearly Blue star management has vision.. A CAGR of 30-35% until 2010 looks to be a neat possibility with Blue Star.. ------------- Often we forget there's a company behind every stock,and there's only one reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies. P Lynch |
Posted By: kulman
Date Posted: 11/Aug/2007 at 10:48pm
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Central airconditioning and commercial refrigeration major, Blue Star has bagged a prestigious airconditioning order valued at over Rs 25 crore from MediCity, Gurgaon. Blue Star’s scope of work includes the airconditioning project execution of the entire campus including supply of 140 air handling units and fan sections, 90 ventilation fans, 150 jet fans, 54,000 sq m of ducting and 34 km of piping. This is the second big healthcare project that Blue Star has won in recent months. The Company is currently executing the airconditioning project for Kokilaben Dhirubhai Ambani Hospital (earlier Mandke Hospital) in Mumbai. Source: http://www.bluestarindia.com/pressroom/default.asp#69 - Co News------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: kulman
Date Posted: 25/Aug/2007 at 9:49am
Source: Angel Broking research report.
------------- Life can only be understood backwards—but it must be lived forwards |
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Posted By: basant
Date Posted: 25/Aug/2007 at 10:47am
|
Excellent business with super fundmamentals. Look at the RoE sooner rather then later there could be a PE expansion and the best part with companies supplying AC"s to the commercial establishments is the regular flow of AMC revenues which in one sense creates a stable cash flow for these companies. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Vivek Sukhani
Date Posted: 26/Aug/2007 at 12:16pm
| I have a simple question which may be irrelevant in the context of bluestar.......how do you shortlist among star companies. Blue star as well hitachi and voltas are doing great, now which do you pick...if the best is most expensive, second best second most expensive and third best third most expensive, what do you do.....is there any opportunity left????? I used to like fedders lloyd, and the stock did quite well but among frontliners until and unless someone spots the game very early big money is not possible to be made in most of the cases..... |
Posted By: basant
Date Posted: 26/Aug/2007 at 12:28pm
|
At today's levels big money (5 bagger) is not easy to make because big money will be made in a rerating (PE expansion) and not in EPS growth which works more as a compounding tool. With all these airconditioning companies what we have to see is the market segment Hitachi caters to an upper end whereas Blue Star is the leader in the commercial segment and Voltas more of a diversified play with cold storage etc.Commerical establishments always have a AMC revenue flowing which in 3 years could be very significant so isnpite of a slowdown in new sales the old segment will create maintenence income which adds stability - no capex and only service based. This increses RoE and is like getting rental income without buying the property.
Hitachi has just turned around and a friend of mine has a significant position there but somehow I like mass consumption items which cater to a larger market size hence the preference for Blue Star. Voltas is also good but there is little scope for a PE expansion there. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Vivek Sukhani
Date Posted: 26/Aug/2007 at 12:41pm
| Somehow, there comes a mental block while getting into them. Actually, our country is doing so well at the moment that even the uninteresting companies are doing excellent on performance. Nevertheless, some decent piece of information to make the mind upon....thanks |
Posted By: kulman
Date Posted: 26/Aug/2007 at 1:23pm
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.........the uninteresting companies are doing excellent on performance........
------------------------------------------------------
Slightly irrelevant here, but I read somewhere (may be Lynch's book) that mostly uniteresting businesses, companies with boring products & unexciting names make most of the money for shareholders. ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: paras
Date Posted: 26/Aug/2007 at 1:42pm
Basantji at present blue start is prices at 113 which is at PE of 39.57. And the projected growth is around 30% till 2010, so still do you think there is scop for PE expansion?
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Posted By: Vivek Sukhani
Date Posted: 26/Aug/2007 at 2:07pm
Manish Sir, if Mr. Lynch has said so, I think its very surprising....a person who asvocates to buy what you see, to expect him to buy a company with boring product.......!!!!! I see a natural disconnect...nevertheless, at least someone agreed with me......
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Posted By: basant
Date Posted: 26/Aug/2007 at 2:14pm
A company with a PE less then growth ultimately has a PE which goes far above growth but we do not buy companies betting on pE expansion just that this would happen comes as an additional kicker!
You are probably quoting a source that is displaying a trailing PE! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Mr. V
Date Posted: 27/Aug/2007 at 7:31pm
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Blue Star should do an EPS of Rs 13-14 in FY08.
At CMP of Rs 315 it has a PE of 23-24.
I don't see much scope for a major PE expansion but it should be a steady 30% compounder over the next 3 years.
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Posted By: kulman
Date Posted: 24/Oct/2007 at 2:33pm
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What a terrific Q2!!!
Operating performance improvement: OPM 12.64% v/s 8.95%
Topline grew @ over 45% & bottomline @ 150%
EPS for the first half FY08 is Rs. 7.6 v/s full year FY07 EPS Rs. 7.91.
The stock locked in 20% upper circuit CMP Rs.361.10 is trading at PE of 30 TTM basis.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 24/Oct/2007 at 2:41pm
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This is like a cool breeze over the shareholders! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: jack
Date Posted: 24/Oct/2007 at 3:45pm
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Basantji, What a terrific run, after your write up. Another example for your brilliance.
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Posted By: basant
Date Posted: 24/Oct/2007 at 3:51pm
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Thank you for your kind words. This is one of the best surrogte infrastructure/Realty plays in India. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Ajith
Date Posted: 24/Oct/2007 at 4:13pm
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I boght at upper circuit.I think I still have a reasonable margin of safety as my view is far ahead. ------------- Ajith |
Posted By: Mr. V
Date Posted: 24/Oct/2007 at 7:25pm
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Brilliant results. Far above my expectations.
I think the annual Maintainance contracts are kicking in and adding to the bottom line.
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Posted By: kulman
Date Posted: 24/Oct/2007 at 7:36pm
This post from Basant jee made me not only hold but add on declines. Thanks Guru jee. The icing on the cake is.... this guy doesn't accept Guru Dakshina.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: smartcat
Date Posted: 24/Oct/2007 at 7:40pm
| Hmm. Please don't give him ideas. If Basant ever gets inspired by Dronacharya, then none of us would have thumbs. |
Posted By: kulman
Date Posted: 24/Oct/2007 at 7:46pm
 Thumbs up to that one!!
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 24/Oct/2007 at 9:09pm
Thank you for that. Actually we should have made Blue Star a part of TED XI. This was one of the ebst surrogate plays on real estate, retail, consumerism per se.
The recent results indicate that the stock price could double up quickly from its pre-result price of Rs 300.
Over the next 96-192 hours we should see a PE rereating on an expanded EPS. DO investors need more?  ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: omshivaya
Date Posted: 24/Oct/2007 at 9:34pm
Coming from you Basant sir, that's a big statement especially since you have quantified the time-frame of rerating. Congrats Kulman jee, aap to akele akele hee malai khaa rahe ho!!
 Anyway, am very happy for you really!! Basant sir, while price could double-up as you say, but what about the expected CAGR for next 3 years? What's a reasonable CAGR range to expect from BlueStar. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: basant
Date Posted: 24/Oct/2007 at 10:35pm
|
Very tough to take that one quarter result forward. Nevertheless it is tough (extremely dangerous) for investors to board a running train! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: omshivaya
Date Posted: 24/Oct/2007 at 10:42pm
|
Yes you are right!  And besides, I dont have the ticket(cash) to bOard this trAIn, but was just asking aise hee! Anyhow, for those wanting to get into this one...today 20% Upper Circuit(which everYone knows), ended with 20K pendIng buy orders so kal bhi chance kum lagta hain  ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: Ajith
Date Posted: 24/Oct/2007 at 10:59pm
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The substantial rise in net profits-if its due to economies of scale cost cutting and its regular then Blue Star is a sure shot reasonable multibaggerfrom current levels. ------------- Ajith |
Posted By: nikhil090
Date Posted: 16/Nov/2007 at 11:56pm
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Conference call transcript of analyst call. managment indicated that for the next 3 years, they should grow by 30-35% in topline. This means that bottomline should grow at more than 40% per year.. Even at 420+ this remains a good investment..
http://www.bluestarindia.com/investors/images/Inv%20Concall%20Transcript%20Q2.zip - http://www.bluestarindia.com/investors/images/Inv%20Concall%20Transcript%20Q2.zip
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Posted By: sunlight
Date Posted: 17/Nov/2007 at 9:02pm
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Nikhilji
I agree with you. This is one of a great buys at current levels. Brokerage houses have started tracking this stock. We should see 500- 550 when 3Q results are out.
http://www.moneycontrol.com/mf/user_scheme/mfholddetail_sec.php?sc_did=BS - http://www.moneycontrol.com/mf/user_scheme/mfholddetail_sec.php?sc_did=BS
I noticed that MF's have dumped this stock on september. There was about 40% drop in MF holdings between sep and oct. DSP-ML, Sundaram have exited the stock. HDFC is either holding or adding more.
Basantji
Any idea what triggers MF managers to dump a stock like BlueStar?
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Posted By: Ajith
Date Posted: 27/Nov/2007 at 7:05am
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Emkay is so bullish on Engineesring,Capital Goods and Infrastructure and this indicates one real spin-off beneficiary will be Blue Star with a relatively low PE going forward. ------------- Ajith |
Posted By: kulman
Date Posted: 27/Nov/2007 at 8:09am
|
Last week I could not download concall transcript ( http://www.bluestarindia.com/investors/images/Inv%20Concall%20Transcript%20Q2.zip - Investors Concall October 26, 2007 ) from Blue Star's website maybe due to glitch.
I had sent an e-mail to the company & within hours they replied with an attachment!
While this is just to point out the promptness of Investors Relationship dept, the business outloook remains positive as evident from Concall.
I'm in fact waiting to add more on dips.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: kulman
Date Posted: 29/Nov/2007 at 10:34am
|
Blue Star Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on December 05, 2007, inter alia, to consider a proposal for purchase of a business.
Source: http://www.bseindia.com/qresann/news.asp?newsid=%7b70B182E3-A62C-4D2E-B54A-FD7A9B67D529 - http://www.bseindia.com/qresann/news.asp?newsid={70B182E3-A62C-4D2E-B54A-FD7A9B67D529 }
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: deveshkayal
Date Posted: 29/Nov/2007 at 11:30am
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This Company is cool but the stock is HOT !!! ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: kulman
Date Posted: 05/Dec/2007 at 1:51pm
|
Blue Star Ltd has informed BSE that the Board of Directors of the Company at its meeting held on December 05, 2007, has approved a proposal for the strategic acquisition of the businesses of Naseer Electricals Pvt Ltd a leading Electrical Contracting firm, as a going concern. With this move, the Company will be able to deliver integrated Mechanical, Electrical & Plumbing (MEP) contracting projects for the commercial building and infrastructure segments. The Board of Directors has authorized a four member committee headed by Mr. Suneel M Advani, Vice Chairman and Managing Director to finalize the Definitive Business Purchase Agreement, and conclude the transaction on or before December 31, 2007 (Closing Date) subject to final due diligence. The details of the transaction will be available after the Closing Date. The growing Indian economy and the construction boom offer attractive business opportunities in the MEP contracting space. Moreover, many customers of Blue Star are seeking Electrical Contracting services from the Company. While Blue Star will continue to focus on its core businesses of airconditioning and commercial refrigeration as a manufacturer, contractor and service provider, it intends to further enhance its capabilities in the MEP space by entering Electrical Contracting through this transaction. Naseer Electricals Pvt Ltd, headquartered at Bangalore, is an Electrical Contracting firm with a turnover of Rs 107 crore (FY07) and a strong presence in South India. Naseer Electricals enjoys an exceptional reputation as a leading player in the IT, ITES, Infrastructure and Retail segments. Source: http://www.bseindia.com/qresann/news.asp?newsid=%7bA5D7C8CE-90DF-41EF-AAE1-71D9C7A24DBF%7d - Blue Star - Outcome of Board Meeting
---------------------------------------------
If one reads the previous concall, the significance of having in-house MEP would be clear. With this BlueStar would be able to bid for larger projects on turn-key basis. Let's see....
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 05/Dec/2007 at 1:55pm
|
This company seems to be reaching for the blue sky. Deserves more coverage at TED. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Ajith
Date Posted: 05/Dec/2007 at 2:01pm
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Blue Star,growth will accelerate hereon..Fidelity had a small holding as on 30-9-07.
------------- Ajith |
Posted By: smartcat
Date Posted: 05/Dec/2007 at 2:55pm
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This acquisition means Blue Star is following the footsteps of Voltas. They are moving away from being a electronics company to an infrastructure company. |
Posted By: deveshkayal
Date Posted: 05/Dec/2007 at 3:00pm
|
Deserves more coverage at TED.
---------------------------------------------------
Chalo phir ye lo....hum suru ho gaye
Blue Star has a 30% market share in the Central AC market. The carry forward order book stood at 1031 crs as at Sept.2007 as against 788 crs end Sept.2006. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: leo2007
Date Posted: 05/Dec/2007 at 3:09pm
| What is the market share of Voltas.What is their order book position ? Any idea ? |
Posted By: kulman
Date Posted: 05/Dec/2007 at 7:36am
|
From Dna Money...
Contacted, B Thiagarajan, executive vice-president, Blue Star Ltd didn’t divulge the deal size, but said it would add value to the company and help it take on rival Voltas. “We have an order book of Rs 1,300 crore and a 32% market share in central air-conditioning. We are expecting turnover to touch Rs 2,000 crore by the end of current fiscal,” he said. Blue Star expects the deal to help it secure integrated mechanical, electrical and plumbing (MEP) contracts for commercial buildings and infrastructure projects. The scope of MEP work includes the services like mechanical, heating, ventilation, air-conditioning, refrigeration, indoor air quality, fire fighting security systems, in addition to specialised systems like airfield lighting, flight information display systems, etc.
The MEP space has been seeing a lot of action of late. Market leader Voltas, part of the Tata Group, has started offering MEP services in India, targeted at high-growth segments like airports, multiplexes, malls, IT Parks, commercial properties. “In just a year, we have bagged jobs worth Rs 250 crore in MEP such as the Hyderabad International Airport, Galleria Palm Beach Mall in Navi Mumbai, the Dibrugarh Domestic Airport, two corporate offices in the North India and there are several more on the horizon,” a Voltas spokesperson said. Source: http://www.dnaindia.com/report.asp?newsid=1137491 - Blue Star in MEP play with a buy ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: kulman
Date Posted: 17/Dec/2007 at 11:05pm
|
Ingersoll buys Trane: Cool $10.1B deal (Link: http://money.cnn.com/2007/12/17/news/companies/ingersoll_trane.ap/index.htm?postversion=2007121709 - here )
Does any US based TEDdy know about business model of Trane? Is it by any chance comparable to Blue Star or Voltas?
------------- Life can only be understood backwards—but it must be lived forwards |