Blue Star Limited (BLUESTARCO) AI Stock Analysis

• Market Cap: ₹358.50B
• Dividend Yield: 0.52%
• Average Volume (3M): 34.38K
• Price to Earnings (P/E): 66.0
• Beta (1Y): 0.93
• Revenue Growth: 17.04%
• EPS Growth: 7.63%
• Country: IN
• Employees: 3,167
• Sector: Consumer Defensive
• Sector Strength: 67
• Industry: Industrial - Machinery
• EPS (TTM): 5.90
• Shares Outstanding: 205,614,790
• 10 Day Avg. Volume: 36,303
• 30 Day Avg. Volume: 34,376
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹1,850.33
• Price Target Upside: 5.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: ₹1,891.00 ▲(7.79% Upside)

Blue Star Limited's overall stock score is driven by its strong financial performance, characterized by robust revenue growth and solid cash flow management. However, the high P/E ratio suggests potential overvaluation, which is a significant risk factor. Technical indicators show neutral momentum, requiring cautious optimism.

Blue Star Limited Business Overview & Revenue Model

Company Description

Blue Star Limited (BLUESTARCO) is a leading company in the air conditioning and commercial refrigeration industry, based in India. The company operates across several sectors, including residential and commercial air conditioning, refrigeration, and engineering services, providing a comprehensive range of products and solutions.

How the Company Makes Money

Blue Star Limited generates revenue through multiple streams, primarily focusing on the manufacturing and sale of air conditioning systems and commercial refrigeration products. Its revenue model includes direct sales to consumers, particularly in the residential sector, as well as sales to large commercial clients and government contracts in various industrial sectors. Additionally, the company offers a range of engineering services, including maintenance and repair, which contribute to its recurring revenue. Strategic partnerships with international brands and investments in research and development also enhance its product offerings and market reach, further bolstering its earnings.

Blue Star Limited Financial Statement Overview

Summary

Blue Star Limited shows strong revenue growth and healthy profit margins. Despite operational efficiency challenges indicated by a decline in EBIT margin, the company's financial stability is supported by low leverage and strong cash flow improvements.

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	Mar 2025	Mar 2024	Mar 2022	Mar 2023	Mar 2021
Income Statement
Total Revenue	119.68B	96.32B	60.00B	79.77B	42.35B
Gross Profit	28.93B	22.11B	12.70B	17.96B	9.53B
EBITDA	9.62B	7.12B	3.81B	6.94B	2.98B
Net Income	5.91B	4.15B	1.68B	4.00B	1.00B
Balance Sheet
Total Assets	82.58B	66.18B	43.13B	53.99B	35.49B
Cash, Cash Equivalents and Short-Term Investments	8.90B	6.23B	4.11B	3.91B	6.07B
Total Debt	3.81B	2.43B	5.54B	6.62B	5.10B
Total Liabilities	51.90B	40.06B	32.92B	40.65B	26.62B
Stockholders Equity	30.65B	26.10B	10.18B	13.31B	8.85B
Cash Flow
Free Cash Flow	3.16B	-1.52B	-1.26B	-1.13B	2.86B
Operating Cash Flow	6.88B	2.89B	918.00M	2.47B	3.50B
Investing Cash Flow	-4.64B	-5.34B	-690.10M	-1.82B	-2.40B
Financing Cash Flow	-1.62B	3.65B	-867.70M	-910.80M	-695.70M

Blue Star Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1754.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1754.4 is below the 20-day moving average (MA) of 1769.79, above the 50-day MA of 1723.42, and below the 200-day MA of 1855.74, indicating a neutral trend. The MACD of 5.85 indicates Positive momentum. The RSI at 49.37 is Neutral, neither overbought nor oversold. The STOCH value of 44.15 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
THERMAX	73 Outperform	₹392.71B	55.33		0.43%	8.14%	-4.46%
BLUESTARCO	66 Neutral	₹358.50B	65.98		0.52%	17.04%	7.63%
VOLTAS	65 Neutral	₹411.85B	63.60		0.55%	2.76%	41.73%
Sector *	63 Neutral	$21.01B	14.53	-7.26%	3.13%	3.36%	-7.91%
JYOTICNC	55 Neutral	₹202.37B	60.15		―	25.05%	48.33%
KIRLOSBROS	―	₹149.28B	35.83		0.37%	―	―
SCHNEIDER	65 Neutral	₹202.19B	77.57		―	15.67%	40.44%

Blue Star Limited Corporate Events

Blue Star Limited Schedules Investor Meetings for August and September 2025

Blue Star Limited has announced a series of meetings with analysts and institutional investors scheduled for August and September 2025. These meetings, both in-person and virtual, will take place at various conferences, including the EMKAY Conference, Equirus Annual India Conference, and others. This schedule indicates Blue Star’s proactive engagement with key financial stakeholders, likely aiming to enhance transparency and investor relations.

Blue Star Limited Conducts 77th AGM Virtually, Ensures Compliance and Transparency

Blue Star Limited held its 77th Annual General Meeting (AGM) on August 6, 2025, through video conferencing, adhering to regulatory guidelines. The meeting was chaired by Mr. Vir S Advani, with all directors present, and included a review of statutory and secretarial audit reports, which contained no adverse remarks. Shareholders were provided with e-voting options to participate in decision-making, ensuring compliance with corporate governance standards.

Blue Star Limited Revises E-Voting Cut-off Date for 77th AGM

Blue Star Limited has announced a revision in the cut-off date for e-voting related to its 77th Annual General Meeting, now set for July 30, 2025. The company has provided updated details for the AGM, including the schedule for remote e-voting, which will commence on August 1, 2025, and conclude on August 5, 2025. This revision ensures compliance with regulatory requirements and facilitates shareholder participation in the decision-making process.

Blue Star Limited Announces Revised AGM Notice and E-Voting Details

Blue Star Limited has announced a revised notice for its 77th Annual General Meeting (AGM) scheduled for August 6, 2025, correcting the e-voting cut-off date to July 30, 2025. The company has ensured that all relevant documents, including the Integrated Annual Report for the financial year 2024-25, are accessible electronically to stakeholders, reflecting its commitment to transparency and regulatory compliance.