Motilal Oswal initiates India's Blue Star with "neutral"

Blue Star

25/11/2025 05:31

** Motilal Oswal initiates coverage with "neutral rating", sets PT at 1,950 rupees

** Blue Star BLUS.NS shares down 1% to 1766 rupees on the day

** Says co leading player in commercial refrigeration with steady market share gains in room air-conditioner segment

** Expects operating margins expansion by ~40-50 bps in FY27 and FY28 each led by positive operating leverage and cost-saving initiatives

** Estimates revenue growth of 16% over FY26-28 fueled by continued healthy growth in the Mechanical, Electrical

and Plumbing) and commercial air conditioning businesses and a recovery in the unitary cooling product business

** Says stock fairly valued at current levels given the strong re-rating in its valuation multiples in the last few years

** YTD, BLUS down 17%

(Reporting by Komal Salecha)

((Komal@thomsonreuters.com;))