• We had recommended Blue Star to our investors at Rs 478. Our recommendation was backed by reasons such as strong financial performance of the company in the preceding three years and four quarters at the time of recommendation. Now at the current level the scrip is trading at Rs 286.35 (down by 40 per cent). But here we
would recommend the investors to hold the scrip with long term perspective.
• As expected, after our recommendation the topline of the company has increased but the bottomline got impacted due to rising raw material prices. But still we feel that
valuation-wise the scrip is cheap. Currently the CMP of Rs 286 discounts its FY08 earnings by 14x giving the scrip scope for further upward movement. Hence we recommend the investors to hold the scrip at its current level.
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