⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BLUESTARCO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | BLUESTARCO | Market Cap | 37,312 Cr. | Current Price | 1,816 ₹ | High / Low | 2,270 ₹ |
| Stock P/E | 90.5 | Book Value | 139 ₹ | Dividend Yield | 0.49 % | ROCE | 22.8 % |
| ROE | 18.2 % | Face Value | 2.00 ₹ | DMA 50 | 1,874 ₹ | DMA 200 | 1,839 ₹ |
| Chg in FII Hold | -1.39 % | Chg in DII Hold | 1.44 % | PAT Qtr | 76.4 Cr. | PAT Prev Qtr | 69.9 Cr. |
| RSI | 42.0 | MACD | -14.4 | Volume | 3,41,237 | Avg Vol 1Wk | 6,05,065 |
| Low price | 1,521 ₹ | High price | 2,270 ₹ | PEG Ratio | 1.59 | Debt to equity | 0.41 |
| 52w Index | 39.4 % | Qtr Profit Var | -21.1 % | EPS | 18.4 ₹ | Industry PE | 43.3 |
📊 Financials
- Revenue Growth: PAT improved from 69.9 Cr. to 76.4 Cr. (+21.1% YoY), but growth remains modest
- Profit Margins: EPS at 18.4 ₹, consistent but not high relative to valuation
- Debt Ratios: Debt-to-Equity 0.41, moderate leverage
- Cash Flows: Supported by consumer demand in cooling and appliances
- Return Metrics: ROE 18.2%, ROCE 22.8% — solid efficiency
💹 Valuation
- P/E Ratio: 90.5 (extremely high vs Industry PE 43.3)
- P/B Ratio: ~13.1 (premium, reflects brand strength)
- PEG Ratio: 1.59 (fair, but leaning toward overvaluation)
- Intrinsic Value: Current price (1,816 ₹) below DMA 50 (1,874 ₹) & DMA 200 (1,839 ₹), showing technical weakness
🏢 Business Model & Competitive Advantage
- Leading player in air conditioning, refrigeration, and consumer appliances
- Strong brand recognition and distribution network
- Competitive advantage in premium cooling solutions
- Valuation stretched despite moderate earnings growth
📈 Entry Zone Recommendation
- Entry Zone: 1,750–1,820 ₹ (near support levels, RSI at 42.0)
- Long-Term Holding: Suitable for investors seeking consumer appliance exposure, but caution due to high valuation
✅ Positive
- Strong ROCE (22.8%) and ROE (18.2%)
- DII holding increased (+1.44%)
- Quarterly PAT growth
- Strong brand presence in consumer appliances
⚠️ Limitation
- Extremely high P/E ratio (90.5)
- Moderate debt-to-equity ratio (0.41)
- Stock trading below DMA 50 & 200, showing weakness
📉 Company Negative News
- FII holding decreased (-1.39%)
- Technical weakness with MACD negative (-14.4)
📈 Company Positive News
- DII holding increased (+1.44%)
- Quarterly PAT improved
🏭 Industry
- Consumer appliances and cooling industry growing steadily with rising demand
- Industry PE at 43.3, Blue Star trades at a steep premium
🔎 Conclusion
Blue Star is a strong consumer appliance brand with solid return ratios and steady demand. However, valuations are stretched with a P/E of 90.5, far above industry averages. Entry around 1,750–1,820 ₹ may be considered, but long-term investors should be cautious due to high valuation and moderate leverage. Holding is justified for brand strength, but upside may be limited unless earnings growth accelerates.