BLUESTARCO - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.3
| Stock Code | BLUESTARCO | Market Cap | 35,662 Cr. | Current Price | 1,734 ₹ | High / Low | 2,270 ₹ |
| Stock P/E | 86.5 | Book Value | 139 ₹ | Dividend Yield | 0.52 % | ROCE | 22.8 % |
| ROE | 18.2 % | Face Value | 2.00 ₹ | DMA 50 | 1,869 ₹ | DMA 200 | 1,838 ₹ |
| Chg in FII Hold | -1.39 % | Chg in DII Hold | 1.44 % | PAT Qtr | 76.4 Cr. | PAT Prev Qtr | 69.9 Cr. |
| RSI | 35.0 | MACD | -24.6 | Volume | 4,99,794 | Avg Vol 1Wk | 5,73,128 |
| Low price | 1,521 ₹ | High price | 2,270 ₹ | PEG Ratio | 1.52 | Debt to equity | 0.41 |
| 52w Index | 28.4 % | Qtr Profit Var | -21.1 % | EPS | 18.4 ₹ | Industry PE | 44.2 |
Analysis: Blue Star Ltd (BLUESTARCO) has solid fundamentals with ROCE at 22.8% and ROE at 18.2%, supported by moderate debt-to-equity (0.41). At ₹1,734, the stock is trading below both its 50 DMA (₹1,869) and 200 DMA (₹1,838), reflecting bearish sentiment. RSI at 35.0 suggests near oversold conditions, while MACD at -24.6 confirms weak momentum. The P/E of 86.5 is nearly double the industry average (44.2), indicating overvaluation. EPS of ₹18.4 and PEG ratio of 1.52 show moderate growth-adjusted value. Despite quarterly PAT growth from ₹69.9 Cr. to ₹76.4 Cr., profit variation (-21.1%) raises caution. Swing trade potential exists but with limited upside due to valuation risks.
Optimal Entry Price: Around ₹1,700–₹1,720, close to support zones.
Exit Strategy (if already holding): Consider exiting near ₹1,850–₹1,870, where resistance aligns with the 50 DMA. A stop-loss near ₹1,680 is advisable to manage downside risk.
✅ Positive
- Strong ROCE (22.8%) and ROE (18.2%).
- EPS of ₹18.4 reflects decent earnings power.
- DII holdings increased (+1.44%), showing domestic institutional support.
- Dividend yield of 0.52% adds shareholder value.
⚠️ Limitation
- High P/E of 86.5 vs industry 44.2.
- Stock trading below both 50 & 200 DMA.
- RSI and MACD indicate weak momentum.
- Debt-to-equity ratio of 0.41 is moderate but adds leverage risk.
📰 Company Negative News
- Quarterly profit variation (-21.1%) raises concerns.
- FII holdings decreased (-1.39%), showing reduced foreign investor confidence.
🌟 Company Positive News
- Quarterly PAT improved from ₹69.9 Cr. to ₹76.4 Cr.
- DII holdings increased (+1.44%), showing domestic support.
- Strong 52-week index performance (+28.4%).
🏭 Industry
- Consumer durables and cooling solutions sector benefits from rising demand in housing and commercial spaces.
- Industry P/E at 44.2 indicates moderate valuations compared to Blue Star’s premium pricing.
📌 Conclusion
Blue Star Ltd is fundamentally strong with solid ROCE and ROE, but faces technical weakness and high valuation. Entry near ₹1,700–₹1,720 is favorable, with exit around ₹1,850–₹1,870. Swing trade potential exists, but caution is advised due to bearish momentum and overvaluation.