Blue Star --- a product of value engineering and construction boom

Blue Star crossed a turnover of more than Rs 1,600 crore in FY07,its sales stood at 89x to its equity capital..the best part is that industry which is hogged by lower margins , saw the company's net margins expand by as much as 303 basis points in H1FY08..this was due to stronger rupee(the company being a net importer of manufactured components),reducing customs duties on components and value engineering

It has a orderbook of Rs 1,300 crore..this is expected to grow stronger on account of commercial construction..it also enjoys the preferred vendor status from its clients ,and this could lead to gud repeat biz as well

EPS for FY08 stood at Rs 19.36 vis a vis Rs 7.91 in the previous year...for next year EPS could b around Rs 27-30 ...value engineering is leading to margin expansion

it can b bought in the price range of 390-435 for medium term target of 505+

negatives come in the form of real estate slowdown n rupee depreciation