BLUESTARCO - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Investment Analysis: Blue Star Ltd (BLUESTARCO)

⭐ Investment Rating

4.2 A fundamentally strong consumer durables player with robust return metrics and low leverage, but trading at a premium valuation.

📈 Long-Term Investment Potential

Blue Star is a leading HVAC and commercial refrigeration company with consistent growth and operational efficiency. Here's how it stacks up

ROE (20.6%) & ROCE (26.2%): Excellent capital efficiency, well above industry norms.

PEG Ratio (1.18): Reasonable valuation relative to earnings growth.

Debt-to-Equity (0.12): Very low leverage, enhancing financial resilience.

Dividend Yield (0.52%): Modest but stable income stream.

Quarterly Profit Growth (21.2%): Indicates healthy earnings momentum.

Stock P/E (61.3) vs Industry PE (53.3): Slightly overvalued, but justified by superior returns.

The company has shown strong revenue and profit growth over the past few quarters, supported by product expansion and operational scale-up

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🎯 Ideal Entry Price Zone

Indicator Value

50 DMA ₹1,746

200 DMA ₹1,781

RSI 47.6 (neutral)

MACD 14.8 (bullish)

Support Zone ₹1,620–₹1,700

Resistance ₹1,850–₹1,900

Suggested Entry Zone: ₹1,620–₹1,700 This range offers a technical cushion and aligns with historical support and neutral RSI levels.

🧭 Exit Strategy / Holding Period

If you're already holding BLUESTARCO

Holding Period: Long term (3–7 years), ideal for compounding returns as India’s HVAC market expands.

Exit Strategy

Partial Exit near ₹2,400–₹2,500 if valuation stretches and growth slows.

Hold if ROE remains above 18% and PEG stays below 1.5.

Reassess post Q2 FY26 results (expected August 6, 2025) for margin trends and order book updates

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Would you like a peer comparison with Voltas or Whirlpool to see how Blue Star stacks up in the consumer durables space?

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stockanalysis.com

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trendlyne.com

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