Blue Star soars on acquisition

Blue Star soars on acquisition

Blue Star surged 8.40% to Rs 477 at 14:45 IST on BSE, after the company said it has completed the acquisition Naseer Electricals, a Bangalore based electrical contracting firm, for up to Rs 42 crore.

The company made this announcement during market hours today, 14 February 2008.

Meanwhile, BSE Sensex was up 660.08 points or 3.89% to 17,609.22, on strong cues from the global markets. Stocks rose across the globe as a surprise increase in US retail sales in January 2008 helped ease recession worries in the world's largest economy.

On BSE, 32,998 shares were traded in the counter. The scrip had an average daily volume of 34,097 shares in the past one quarter.

The stock hit a high of Rs 478 and a low of Rs 444 so far during the day. The stock had a 52-week high of Rs 548.25 on 4 January 2008 and a 52-week low of Rs 180.25 on 6 March 2007.

The mid-cap scrip had outperformed the market over the past one month till 13 February 2008, declining 10.71% compared to the Sensex’s decline of 16.31%. It had also outperformed the market in the past one quarter, gaining 4.10% compared to Sensex’s decline of 14.33%.

The company’s current equity is Rs 17.99 crore. Face value per share is Rs 2.

The current price of Rs 477 discounts its Q3 December 2007 annualized EPS of Rs 15.76, by a PE multiple of 30.27.

Naseer Electricals, headquartered at Bangalore, is an electrical contracting firm with a turnover of Rs 107 crore and a strong presence in south India. The company's current order book is approximately Rs 100 crore.

Blue Star’s net profit rose 208.2% to Rs 35.44 crore on 39.1% growth in net sales to Rs 514.88 crore in Q3 December 2007 over Q3 December 2007.

Blue Star's major products includes packaged air-conditioning, industrial packaged chillers, shell and tube condensers and coolers, air handling units, finned condensers and evaporators.