Buy Blue Star, target price Rs 920: Yes Securities

Buy Blue Star, target price Rs 920:  Yes Securities

Yes Securities has buy call on with a target price of Rs 920. The current market price of Blue Star Ltd. is Rs 844.

Blue Star Ltd., incorporated in the year 1949, is a Mid Cap company (having a market cap of Rs 8021.02 Crore) operating in Consumer Durables sector.

For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 1131.98 Crore, up 24.67 % from last quarter Total Income of Rs 907.98 Crore and down -8.86 % from last year same quarter Total Income of Rs 1242.00 Crore. Company reported net profit after tax of Rs 35.86 Crore in latest quarter.

Investment Rationale
The stock has turned upwards after taking support at the confluence of two moving averages 20-DMA and 50-DMA, indicating bullishness. Further, it is on the verge of a breakout from a trendline resistance formed joining recent highs. Also, it has a neckline of a bullish Head & Shoulders pattern placed at Rs 857. A successful breakout on healthy volumes will resume the uptrend. Technical indicators suggest that the breakout is on cards.

Promoter/FII Holdings
Promoters held 38.8 per cent stake in the company as of Sept 30, 2020, while FIIs held 9 per cent, DIIs 23.4 per cent and public and others 28.9 per cent.

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