Blue Star Limited (BLUESTARCO) AI Stock Analysis

• Market Cap: ₹363.06B
• Dividend Yield: 0.51%
• Average Volume (3M): 14.76K
• Price to Earnings (P/E): 66.5
• Beta (1Y): 1.18
• Revenue Growth: 14.20%
• EPS Growth: 3.84%
• Country: IN
• Employees: 3,167
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Industrial - Machinery
• EPS (TTM): 4.80
• Shares Outstanding: 205,614,790
• 10 Day Avg. Volume: 16,999
• 30 Day Avg. Volume: 14,756
• PEG Ratio: 1.84
• Price to Book (P/B): 13.57
• Price to Sales (P/S): 3.48
• P/FCF Ratio: 131.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ₹1,983.00 ▲(8.58% Upside)

Blue Star Limited's strong financial performance is the most significant factor, supported by consistent revenue growth and a solid balance sheet. However, technical indicators show mixed signals, and the high P/E ratio suggests overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trajectory and expanding market presence, supporting long-term business sustainability.

Balance Sheet Health

Low leverage enhances financial stability and flexibility, allowing the company to invest in growth opportunities without undue risk.

Profitability

Improved profitability margins indicate effective cost management and operational efficiency, contributing to long-term financial health.

Negative Factors

Free Cash Flow Volatility

Historical volatility in free cash flow suggests potential challenges in cash management, which could impact long-term investment capacity.

Cash Conversion

Moderate cash conversion efficiency may limit the company's ability to quickly reinvest in growth initiatives or manage financial obligations.

Dividend Yield

A low dividend yield may reduce attractiveness to income-focused investors, potentially affecting stock demand and investor base diversity.

Blue Star Limited Business Overview & Revenue Model

Company Description

Blue Star Limited (BLUESTARCO) is a prominent player in the Indian air conditioning and commercial refrigeration sector, also engaged in the fields of engineering and project management. Established in 1943, the company provides a wide range of products and services including air conditioning systems, chillers, and refrigeration equipment, alongside offering comprehensive maintenance and installation services. With a commitment to quality and innovation, BLUESTARCO has established itself as a trusted brand in both residential and commercial markets, serving a diverse clientele across various sectors such as healthcare, hospitality, and retail.

How the Company Makes Money

Blue Star Limited generates revenue through multiple streams, primarily from the sale of air conditioning and refrigeration systems, which includes both equipment and installation services. The company also earns significant income from its maintenance contracts and after-sales services, ensuring a steady flow of recurring revenue. Additionally, BLUESTARCO engages in engineering and project management services, which contribute to its financial performance by providing customized solutions for large-scale projects. Strategic partnerships with global technology providers enhance its product offerings and market reach, while a focus on innovation and energy-efficient solutions attracts environmentally-conscious consumers, further bolstering its earnings.

Blue Star Limited Financial Statement Overview

Summary

Blue Star Limited shows strong revenue growth and profitability metrics with a solid equity base and low debt levels. Cash flow improvements are notable, though operational efficiency challenges remain, particularly in EBIT margins.

Income Statement

Blue Star Limited shows a strong revenue growth trajectory over the years, with a commendable gross profit margin of approximately 24.2% for the latest year and a notable increase in net profit margin to 4.9% from 4.3% the previous year. The EBIT and EBITDA margins are healthy, indicating efficient cost management. However, the decline in EBIT from 12.1% to 6.2% of revenue suggests potential challenges in operational efficiency.

Balance Sheet

The company's balance sheet reflects a solid equity base with an equity ratio of 37.1%. The debt-to-equity ratio is manageable at 0.12, indicating low leverage risk, enhancing financial stability. The return on equity of 19.3% for the latest year highlights strong profitability relative to shareholder investment. Despite this, the increase in liabilities year over year signals a need for cautious debt management.

Cash Flow

Blue Star Limited has demonstrated impressive improvement in cash flow, with a substantial increase in free cash flow. The operating cash flow to net income ratio is robust, suggesting efficient cash generation relative to earnings. A shift from negative to positive free cash flow indicates improved capital expenditure management. However, sustained monitoring is required to ensure consistent free cash flow growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	120.85B	119.68B	96.85B	79.77B	60.64B	42.71B
Gross Profit	23.13B	28.16B	22.40B	17.57B	13.04B	9.80B
EBITDA	8.26B	8.23B	6.28B	4.50B	3.27B	2.28B
Net Income	5.43B	5.91B	4.15B	4.00B	1.68B	1.00B
Balance Sheet
Total Assets	0.00	82.58B	66.18B	53.99B	43.13B	35.49B
Cash, Cash Equivalents and Short-Term Investments	8.42B	8.42B	6.23B	3.69B	4.11B	6.07B
Total Debt	0.00	3.81B	2.43B	6.62B	5.54B	5.10B
Total Liabilities	-30.68B	51.90B	40.06B	40.65B	32.92B	26.62B
Stockholders Equity	30.68B	30.65B	26.10B	13.31B	10.18B	8.85B
Cash Flow
Free Cash Flow	0.00	3.16B	-1.52B	-1.13B	-1.26B	2.86B
Operating Cash Flow	0.00	6.88B	2.89B	2.47B	918.00M	3.50B
Investing Cash Flow	0.00	-4.64B	-5.25B	-1.82B	-690.10M	-2.40B
Financing Cash Flow	0.00	-1.62B	3.65B	-910.80M	-867.70M	-695.70M

Blue Star Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1826.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BLUESTARCO, the sentiment is Negative. The current price of 1826.35 is above the 20-day moving average (MA) of 1770.17, below the 50-day MA of 1827.32, and above the 200-day MA of 1824.35, indicating a neutral trend. The MACD of -5.50 indicates Negative momentum. The RSI at 47.74 is Neutral, neither overbought nor oversold. The STOCH value of 31.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BLUESTARCO.

Blue Star Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JYOTICNC	71 Outperform	₹219.78B	65.31	―	―	19.91%	22.13%
BLUESTARCO	67 Neutral	₹363.06B	66.47	―	0.51%	14.20%	3.84%
SCHNEIDER	63 Neutral	₹178.16B	68.29	―	―	12.77%	31.32%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VOLTAS	61 Neutral	₹458.04B	83.60	―	0.50%	-1.46%	-1.15%
KIRLOSBROS	59 Neutral	₹128.71B	32.83	―	0.43%	4.16%	-0.73%
THERMAX	58 Neutral	₹348.98B	55.57	―	0.48%	3.37%	-19.95%

Blue Star Limited Corporate Events

Blue Star Limited Releases Q2 FY26 Earnings Call Transcript

Blue Star Limited has released the transcript of its earnings call for the second quarter and half-year ending September 30, 2025. The company had previously shared an audio recording of this call, which followed the announcement of its financial results for the same period. This transcript is now available on the company’s website, providing stakeholders with detailed insights into the company’s financial performance and strategic direction.

Blue Star Limited Announces Investor Conference Call for Q2 and H1 FY26 Results

Blue Star Limited has announced a scheduled conference call for investors to discuss its financial results for the second quarter and half-year ending September 30, 2025. The call is set for November 6, 2025, at 11:30 a.m. IST, providing stakeholders an opportunity to gain insights into the company’s performance and strategic direction.