Recommendation from BLUE STAR LTD and TajGVK Hotels & Resorts Ltd

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.

BLUE STAR LTD 

CMP - ₹2,101.10 
BSE CODE 500067 
Volume 90,517 
Face Value ₹2 
Target ₹2,269 - ₹2,311 
Stoploss ₹1,954 (CLS) 

Blue Star, a pioneer in India's air conditioning, commercial refrigeration, and MEP (Mechanical, Electrical, Plumbing, and Fire-fighting) contracting industry, boasts over 80 years of expertise. Expanding beyond cooling, it has also established a presence in air purification, commercial kitchen solutions, and medical refrigeration.Considering its financial performance, Blue Star delivered an impressive 25 per cent revenue growth, rising from ₹2,241 crore in Q3FY24 to ₹2,807 crore in Q3FY25. Net profit surged by around 33 per cent year-on-year, reaching ₹133 crore. The company recently introduced a comprehensive lineup of 150-room AC models, including a flagship premium range, ahead of the upcoming summer season. With demand for room ACs surging, fuelled by intense summer heat, anticipated severe heatwaves across the country, and rising disposable incomes among India's expanding middle class—the company is well-positioned to capitalise on this growing market opportunity. Hence, we recommend BUY 

TajGVK Hotels & Resorts Ltd 

CMP - ₹481.60 
BSE CODE 532390 
Volume 98,336 
Face Value ₹2 
Target ₹523 - v533 
Stoploss ₹450 (CLS) 

TajGVK Hotels & Resorts Ltd, a joint venture between the Indian Hotels Company Limited (IHCL) and the GVK Group, operates premium hotels under the renowned 'Taj' brand. The company caters to luxury and business travellers. Leveraging India's growing tourism and hospitality sector, it continues to expand its footprint, focusing on superior guest experiences and premium offerings. In Q3FY25, the company showcased notable performance, achieving a 14 per cent growth in total revenue to ₹127 crore, while net profit soared 40 per cent year-onyear to ₹34 crore. The stock with strong investor interest has delivered outstanding returns of over 50 per cent in the last five months, standing out even as many Small-Cap stocks faced significant sell-offs. Despite the strong rally, the stock gains a competitive advantage by offering higher returns with a lower price-to-earnings (PE) ratio compared to its listed peers. From a technical perspective, the stock also exhibits strong upside potential. Therefore, we recommend BUY.