Blue Star can rock by its earnings

The central air-conditioning systems major Blue Star will report handsome earnings growth over the next two years (CAGR of 78% between FY07 and FY09). The company being in a position to offer the best requirement for central as well as commercial refrigeration equipment enabling it to maintain a leading market position in this segment, remains one of the key reasons for its bullishness. The stock is a play on structural themes like IT/ITeS and retail. However, that appreciation in the rupee and slowdown in IT/ITeS services remain key concerns.