Value investor- India mid & small caps

Bhaskar Chakraborty

Equity Bottom-Up

<ul><li>India’s second largest air conditioning (AC) player in a barely penetrated market offering a very long runway for growth.</li><li>Beneficiary of the high growth consumer AC industry. Company’s growth rate has far outstripped industry growth rate despite competition demonstrating the power of its brand.</li><li>Company has limited presence in North India that accounts for 40% of the market. Large room to improve distribution in north India and a wide portfolio of inverter ACs provides better growth outlook.</li><li>Business requires little capex to grow earnings. Impressive cash generation with 100% of EBITDA getting converted to operating cashflow (OCF) and 75% of OCF converting into free cashflow.</li><li>Low debt balance sheet, attractive dividend policy and healthy return ratios are additional sweeteners.</li><li>Consensus expects 37% EPS Cagr over FY16-19. At 10% discount to its comparable universe, Blue Star’s fair value is Rs780/share.</li></ul>

India’s second largest air conditioning (AC) player in a barely penetrated market offering a very long runway for growth.Beneficiary of the high growth consumer AC industry. Company’s growth rate has far outstripped industry growth rate despite competition demonstrating the power of its brand.Company has limited presence in North India that accounts for 40% of the market. Large room to improve distribution in north India and a wide portfolio of inverter ACs provides better growth outlook.Business requires little capex to grow earnings. Impressive cash generation with 100% of EBITDA getting converted to operating cashflow (OCF) and 75% of OCF converting into free cashflow.Low debt balance sheet, attractive dividend policy and healthy return ratios are additional sweeteners.Consensus expects 37% EPS Cagr over FY16-19. At 10% discount to its comparable universe, Blue Star’s fair value is Rs780/share.

India Consumer Discretionary: Blue Star- Multi Year Opportunity

India

Lloyd Electric and Engineering Limited manufactures condenser and evaporator coils for air conditioners of various capacities. The Company's products are used as original equipment in window, package, automotive and split air conditioners.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Lloyd Electric & Engineering (LEE IN)

India Consumer Discretionary: Blue Star- Multi Year Opportunity

India’s second largest air conditioning (AC) player in a barely penetrated market offering a very long runway for growth. Beneficiary of the high...

Bhaskar Chakraborty

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)