BLUESTARCO - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.0

📈 Blue Star is a promising swing trade candidate with strong fundamentals, rising volume, and sector tailwinds. Entry near ₹1,870 is optimal. If already holding, consider exiting around ₹1,980–₹2,050.

📈 Positive

• 📊 ROCE of 22.8% and ROE of 18.2% indicate efficient capital deployment.
• 📈 MACD at 8.61 and RSI at 46.1 suggest a potential bullish reversal.
• 📈 DII holding increased by 1.95%, reflecting strong domestic institutional confidence.
• 📈 Volume is nearly double the weekly average, signaling renewed interest.
• 📉 Debt-to-equity ratio of 0.18 shows a conservative capital structure.

⚠️ Limitation

• 💸 Stock P/E of 87.1 is significantly higher than the industry average of 55.8, indicating overvaluation.
• 📉 Quarterly PAT dropped from ₹157 Cr. to ₹109 Cr. (↓30.6%).
• 📉 FII holding declined by 0.16%, showing cautious foreign sentiment.
• 📉 Trading slightly below DMA 50 (₹1,913) suggests short-term resistance.

📉 Company Negative News

• 📉 Analysts flagged margin pressure due to rising input costs and seasonal demand fluctuations.

📈 Company Positive News

• 📈 Blue Star reported strong topline growth and improved margins in FY25, with record performance in Q4

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• 📈 Analysts favor Blue Star for its in-house manufacturing, stable margins, and expanding Electrical Consumer Durables (ECD) portfolio

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❄️ Industry

• ❄️ The consumer durables sector is seeing strong demand, with the Nifty Consumer Durable Index up 3.14% recently

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• 📈 Rising temperatures and urban demand are boosting sales of air conditioners and refrigeration units.

✅ Conclusion

• 📈 Blue Star is a good swing trade candidate with strong fundamentals and improving technicals.
• 📉 Optimal entry price: ₹1,870–₹1,880 (near support and below DMA 50).
• 📈 Exit target: ₹1,980–₹2,050 (approaching resistance and psychological level).
• 📌 Watch for RSI crossing 50 and MACD widening for confirmation before entry.

Would you like a chart of BLUESTARCO’s RSI and MACD to visualize this setup?