Blue Star Limited (BLUESTARCO) AI Stock Analysis

• Market Cap: ₹376.81B
• Dividend Yield: 0.51%
• Average Volume (3M): 14.76K
• Price to Earnings (P/E): 110.4
• Beta (1Y): 1.09
• Revenue Growth: 14.20%
• EPS Growth: 3.84%
• Country: IN
• Employees: 3,167
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Industrial - Machinery
• EPS (TTM): 6.00
• 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): 27.57
• Revenue Forecast (FY): ₹126.96B

• Rating: 67 Neutral
• Price Target: ₹1,983.00 ▲(8.58% Upside)
• Action: Downgraded Date: 12/18/25
• Date: Action: Downgraded 12/18/25

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 operates as a central air conditioning and commercial refrigeration company in India. The company operates through three segments: Electro-Mechanical Projects and Commercial Air Conditioning Systems, Unitary Products, and Professional Electronics and Industrial Systems. The Electro-Mechanical Projects and Commercial Air Conditioning Systems segment designs, manufactures, installs, commissions, and maintains central air conditioning plants, packaged/ducted systems, and variable refrigerant flow systems; and provides contracting services in electrification, plumbing, and fire-fighting, as well as after-sales services, such as revamp, retrofit, and upgrade services. The Unitary Products segment offers room air conditioners for residential and commercial applications, water purifiers, air purifiers, and air coolers; and manufactures and markets a range of commercial refrigeration products and cold chain equipment. The Professional Electronics and Industrial Systems segment trades in and services testing machines, medical, analytical, test and measuring, data communications, and industrial products and systems. The company operates approximately 7,000 stores. It also exports its products to 18 countries in the Middle East, African, SAARC, and ASEAN regions. Blue Star Limited was founded in 1943 and is headquartered in Mumbai, India.

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 exhibits strong financial health with consistent revenue growth and profitability. The balance sheet is solid with low leverage and high return on equity. Cash flow generation has improved, though historical free cash flow volatility suggests a need for cautious cash management.

Income Statement

Blue Star Limited has demonstrated strong revenue growth with a 6.13% increase in the latest year, indicating a positive trajectory. The gross profit margin has remained stable around 23%, reflecting consistent profitability. The net profit margin improved to 4.94%, showcasing enhanced efficiency in converting revenue into profit. EBIT and EBITDA margins have shown slight improvements, indicating effective cost management.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.12, reflecting a strong balance sheet with low leverage. Return on equity is robust at 19.29%, indicating efficient use of equity to generate profits. The equity ratio stands at a healthy level, suggesting a stable financial structure. Overall, the balance sheet shows a solid financial position with manageable debt levels.

Cash Flow

Operating cash flow has increased significantly, indicating improved cash generation from operations. However, free cash flow growth has been negative in previous years, though it has turned positive recently. The operating cash flow to net income ratio is moderate, suggesting a balanced conversion of income to cash. The free cash flow to net income ratio has improved, indicating better cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	122.31B	119.68B	96.85B	79.77B	60.64B	42.71B
Gross Profit	23.10B	28.16B	22.40B	17.57B	13.04B	9.80B
EBITDA	8.52B	8.23B	6.28B	4.50B	3.27B	2.28B
Net Income	5.46B	5.91B	4.15B	4.00B	1.68B	1.00B
Balance Sheet
Total Assets	79.01B	82.58B	66.18B	53.99B	43.13B	35.49B
Cash, Cash Equivalents and Short-Term Investments	4.54B	8.42B	6.23B	3.69B	4.11B	6.07B
Total Debt	11.70B	3.81B	2.43B	6.62B	5.54B	5.10B
Total Liabilities	47.71B	51.90B	40.06B	40.65B	32.92B	26.62B
Stockholders Equity	31.12B	30.65B	26.10B	13.31B	10.18B	8.85B
Cash Flow
Free Cash Flow	-8.59B	3.16B	-1.52B	-1.13B	-1.26B	2.86B
Operating Cash Flow	-7.28B	6.88B	2.89B	2.47B	918.00M	3.50B
Investing Cash Flow	-373.10M	-4.64B	-5.25B	-1.82B	-690.10M	-2.40B
Financing Cash Flow	4.27B	-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: Positive
• 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 1826.35 is below the 20-day moving average (MA) of 1941.32, below the 50-day MA of 1862.86, and above the 200-day MA of 1815.73, indicating a neutral trend. The MACD of 5.19 indicates Positive momentum. The RSI at 42.47 is Neutral, neither overbought nor oversold. The STOCH value of 53.97 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
SCHNEIDER	69 Neutral	₹211.67B	44.51	―	―	12.77%	31.32%
BLUESTARCO	67 Neutral	₹376.81B	110.38	―	0.51%	14.20%	3.84%
JYOTICNC	64 Neutral	₹162.81B	63.58	―	―	19.91%	22.13%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VOLTAS	61 Neutral	₹467.16B	132.41	―	0.50%	-1.46%	-1.15%
KIRLOSBROS	59 Neutral	₹120.85B	25.72	―	0.43%	4.16%	-0.73%
THERMAX	58 Neutral	₹383.96B	41.70	―	0.48%	3.37%	-19.95%

Blue Star Limited Corporate Events

Blue Star Reports Unauthorized Access to Product Installation Data

Blue Star Limited has disclosed that an unauthorized person gained access to its product installation data, prompting the company to notify the stock exchanges under regulatory disclosure norms. The company says it swiftly restricted further access, engaged cybersecurity experts to investigate the potential impact and root cause, and framed the disclosure as part of its good governance practices, with the update also posted on its website for stakeholder awareness.

Blue Star Sets January 30 Investor Call to Discuss Q3 and Nine-Month FY26 Results

Blue Star Limited has scheduled an investors’ conference call to discuss its financial performance for the third quarter and nine months ended December 31, 2025. The earnings call, to be led by Managing Director B. Thiagarajan and Group CFO Nikhil Sohoni, will be held on January 30, 2026, and will give analysts and investors an opportunity to review the company’s recent results and engage directly with senior management, underscoring its ongoing commitment to transparency and timely communication with capital markets.

Blue Star Sets Board Meet for Q3 FY26 Results, Closes Trading Window

Blue Star Limited has notified the exchanges that its board will meet on January 29, 2026 to consider and approve the unaudited standalone and consolidated financial results for the third quarter and nine months ended December 31, 2025, in line with SEBI’s listing and disclosure norms. In conjunction with this, the company has imposed a trading window closure for designated persons from January 1 to January 31, 2026, underscoring its adherence to insider trading regulations and governance standards aimed at preventing misuse of unpublished price-sensitive information ahead of the results announcement.