BLUEJET - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | BLUEJET | Market Cap | 7,118 Cr. | Current Price | 410 ₹ | High / Low | 1,028 ₹ |
| Stock P/E | 20.2 | Book Value | 72.4 ₹ | Dividend Yield | 0.29 % | ROCE | 39.8 % |
| ROE | 30.2 % | Face Value | 2.00 ₹ | DMA 50 | 514 ₹ | DMA 200 | 628 ₹ |
| Chg in FII Hold | -0.69 % | Chg in DII Hold | 1.02 % | PAT Qtr | 52.1 Cr. | PAT Prev Qtr | 91.2 Cr. |
| RSI | 20.6 | MACD | -32.9 | Volume | 1,38,450 | Avg Vol 1Wk | 4,03,703 |
| Low price | 408 ₹ | High price | 1,028 ₹ | PEG Ratio | 1.12 | Debt to equity | 0.02 |
| 52w Index | 0.34 % | Qtr Profit Var | -10.6 % | EPS | 20.3 ₹ | Industry PE | 29.0 |
💹 Financials: Blue Jet Aviation demonstrates strong return metrics with ROE at 30.2% and ROCE at 39.8%, reflecting excellent capital efficiency. Debt-to-equity at 0.02 indicates a virtually debt-free balance sheet, enhancing financial stability. However, quarterly PAT declined from 91.2 Cr. to 52.1 Cr., showing a -10.6% sequential drop, which raises concerns about earnings consistency. EPS at 20.3 ₹ supports moderate earnings visibility.
📊 Valuation: The stock trades at a P/E of 20.2, below the industry average of 29.0, suggesting undervaluation. The P/B ratio is ~5.7 (410/72.4), which is reasonable given strong return ratios. PEG ratio of 1.12 indicates fair valuation relative to growth prospects. Dividend yield at 0.29% is modest, offering limited income return.
🏢 Business Model & Advantage: Blue Jet operates in the aviation services sector, with competitive advantages in operational efficiency, strong brand positioning, and niche market presence. Its low debt structure and high return metrics provide resilience, while demand is supported by rising air travel and aviation infrastructure growth.
📈 Overall Health: Financially robust with strong profitability and minimal debt, though earnings volatility is a concern. RSI at 20.6 indicates the stock is oversold, while MACD at -32.9 suggests bearish momentum in the short term. Long-term fundamentals remain intact, supported by sectoral growth and efficient operations.
🎯 Entry Zone: Attractive entry around 400–420 ₹ range, near support levels and oversold RSI zone. Current price of 410 ₹ offers value relative to industry peers. Long-term investors may accumulate gradually, with potential for recovery and growth.
Positive
- Strong ROE (30.2%) and ROCE (39.8%) indicate superior capital efficiency.
- Low debt-to-equity ratio (0.02) ensures financial stability.
- P/E (20.2) below industry average (29.0) suggests undervaluation.
- DII holdings increased by 1.02%, reflecting domestic institutional support.
Limitation
- Quarterly PAT declined by -10.6%, showing earnings pressure.
- Dividend yield at 0.29% offers limited income return.
- High volatility with sharp swings in price (High/Low: 1,028 ₹ / 408 ₹).
Company Negative News
- Sequential decline in quarterly PAT from 91.2 Cr. to 52.1 Cr.
- FII holdings decreased by -0.69%, showing reduced foreign investor confidence.
Company Positive News
- DII holdings increased by 1.02%, reflecting domestic institutional support.
- Strong return ratios highlight operational efficiency.
- Stock trading below industry P/E suggests value opportunity.
Industry
- Aviation services sector is expanding due to rising air travel demand.
- Industry P/E at 29.0 indicates Blue Jet trades at a discount compared to peers.
- Sector benefits from infrastructure growth and increasing passenger traffic.
Conclusion
Blue Jet remains a fundamentally strong aviation services company with excellent return ratios and minimal debt. Despite near-term earnings pressure and volatility, valuations are attractive. Entry around 400–420 ₹ is advisable for long-term investors, with cautious accumulation recommended given sectoral growth potential and oversold technical indicators.