Stalking Stocks : Blue Star Ltd
Stalking Stocks : Blue Star Ltd
Making our Investors over 40% return in less than 6 months!
Blue Star Co is a company that has been around for around eight decades and is broadly perceived as an air conditioning company. However, in recent years, the company has established itself as a dominant player in the domestic inverter and water purifier market.
As investors, we were quick to notice the company's diversification strategy and invested in the stock in August.
Since then, we have generated over 40% returns for our investors - see it
One of the things that stood out to us was the company's consistent cyclicality. March has consistently been their best quarter, and the revenues pick up in the following three quarters respectively in each financial year. While this cyclicality may persist, we were hopeful that their diversification in the other industries would help them consistently grow profitability, which has worked out for our shareholders.
They have capitalized on their product market fit, understanding their segments and expanding in those where they have emerged as a dominant player. This diversification strategy has paid off in more ways than one. They have maintained their position as a leader in the segments they operate in, with best-in-class after-sales service.
Additionally, they have expanded globally in strategic key markets like Qatar and Dubai, where they can sell both air conditioning and water treatment products.
Blue Star Co's management has also been prudent in maintaining their debt leverage ratio below 0.8x and an interest coverage of over 8x. This shows that the company is financially stable and well-positioned to weather any economic downturns.
Investing in Blue Star Co has been a smart move for our investors. The company's diversification strategy is paying off, and they have established themselves as a leader in multiple industries.
They have a strong financial position, and their global expansion gives them the potential for further growth. As investors, we will continue to monitor the company's performance and make adjustments as necessary, but for now, we are pleased with the returns we have generated for our shareholders.