The Outperformers 2019

The Outperformers (81-90)

These companies have been ranked based on their stock's excess return over the Sensex for a five-year period

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Published 2 years ago on Sep 05, 2019 13 minutes Read

In Outlook Business’ third edition of The Outperformers, these are the companies that have managed to beat the market over a five-year period, creating significant value for their shareholders.

Blue Star

What started out as a company that reconditions air conditioners and refrigerators is today the de facto name in commercial refrigeration and air conditioning and one of the top three players in the market. The company hit the $1 billion turnover mark in FY19, and its market capitalisation stands at Rs.65.32 billion.

Blue Star ventured into the residential segment in 2011, rather late for a cooling solutions company. Nevertheless, the company currently has outperformed the industry by bagging 12.3% market share in the space. In 2018, the brand forayed into the water purifiers segment. It plans to capture 15% of the market share by 2021. The company recently introduced 100 new products into its portfolio, including smart domestic ACs equipped with voice command control tech.

Analysts remain optimistic about the company’s growth prospects on the back of healthy guidance and robust performance in Electro Mechanical & Project Services (EMPS) segment. Over the next five years, Blue Star management has ambitious plan of growing revenue by 20% CAGR and profitability by 25% CAGR. Trading at a P/E of 21.7x for FY21E, a Nirmal Bang report says that rising return ratios, healthy free cash flow, lean working capital cycle and a comfortable leverage position will aid the AC maker’s valuation.

P&G Hygiene

A leader in the FMCG industry, P&G Hygiene and Health (PGHH) can expect sustainable and balanced growth from trends such as higher disposable income and consumer spending, and growing population of youngsters. P&G remains the dominant player in the feminine hygiene category with over 56% market share, which contributed to 70% of its sales in FY19. With steady double-digit growth in both sales at 19% and PAT at 23% over five years, the company has remained competitive in the industry with volume growth. It ha

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