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Blue Star Infotech Ltd (BSIL) , part of Blue Star group, offers solftware
solutions in Digital Transformation and Software Product Engineering with
operations in UDA, UK, Europe, Malaysia and Singapore. Company is focused
on delivering valued-added and future-proofed software solutions by
leveraging emerging technologies and trends while preswerving existing
investments for gaining competitive advantages. BSIL caters to the IT and
software R&D needs of enterprises globally and offers a broad spectrum of
services ranging from Application Development and Management, Product
engineering, Package Implementation and Testing to emerging areas such as
Business Intelligence/Analytics, Mobility and Cloud Computing. Its
technology labs for Mobility, Cloud Computing, Analytics and Usability
engineering incubate and propagate new methodologies, standards, tools and
solutions.

BSIL has been delivering consistently good financials:

                                Q  U   A   R   T    E   R     E  N   D   E
 D          Y/ENDED
                           30.6.2015             31.3.2015       30.6.2014            31.3.2015
                            Rs/Cr                      Rs/Cr              Rs/Cr                Rs/Cr

Total Income         74.29                      69.63            64.46               264.88

PBT                       10.23                     6.6                   4.04                25.49

PAT                          7.26                   4.67                  3.10                18.16

Equity                      10.39                10.80

EpsRs                         6.73                  4.32               2.99                17.18

For FY15, BSIL had reported revenue of 264.88 crores out of which exports
(overseas revenues) were 235.45 crores. It means co is deriving nearly 90%
of its revenues from overseas clients. Eps for FY15 stood at Rs 17.18.

For Q1/FY16, BSIL has achieved revenue of Rs 74.29 crores , growth of 15.2%
YoY basis. However, PAT has flared up YoY 134% to 7.26 crores, translating
into Eps of Rs 6.73. During the quarter, co has procured a big order worth
Rs 96 crores and such steep rise in profits has been possible due to
closing of unremunerative business, streamlining internal processes and
result of past rationalisations.  BSIL can report Eps of Rs 24-26 for
FY16.  Weakening rupees should enhance its earnings further as major
revenues are from overseas clients.Stock is trading at just 12xFY16Eeps.

BREAKING NEWS:  It is reliably learnt that PROMOTERS HAVE DECIDED TO SELL
THEIR ENTIRE 51% stake to a foreign co (name of buyer not being disclosed
here) @ Rs 380 per share. Announcement in this regard can be expected in
next 2-4 weeks. In recent weeks, we had provided ABSOLUTELY ACCURATE
information on companies like Rain Industries, Jindal Poly, CIPLA etc.  Our
Info/Breaking News on Blue Star Infotech should also turn out to be fairly
accurate.

In immediate short term, stock should rise to Rs 350-360. However, under
new management of overseas buyers, BSIL can and should witness big increase
in its revenues and profits in next 12-36 months. Investors may remember
that how Kale Consultants  has delivered huge appreciation to its investors
within 2-3 years of acquisition by foreign co. We estimate that similar
transformation should happen with Blue Star Infotech also. Hence, if
investors hold on to Blue Star Info for 2 years, stock may rise to Rs 750+

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