Blue Star Ltd.
NSE: BLUESTARCOBlue Star Ltd.: A 30-second snapshot
Blue Star (BLUESTARCO) is a Consumer Goods manufacturer trading at ₹1,630.6, carrying a PE of 65.1 and reporting 5-year earnings growth of 17.1% — but with a profit margin of 4.23%, D/E of 23.59, and FCF positive in only 1 of the measured years, the balance sheet carries material leverage relative to its cash generation. The stock is 10.8% below its 200-DMA, down 20.1% from the 52-week high, with analyst mean rating of 2.71 across 23 analysts (1–5 scale, lower = more constructive).
P/E
65.1
Forward P/E
39.7
ROE
+16.2%
Debt / Equity
23.59
Profit Margin
+4.2%
Div. Yield
+0.5%
5Y ROE > 15%
4/5
5Y FCF > 0
1/5
Quality
42/100
News
8 headlines · 0 positive · 1 negative
We Think That There Are More Issues For Blue Star (NSE:BLUESTARCO) Than Just Sluggish Earnings - simplywall.st
simplywall.st
Blue Star Ltd. Sees Sharp Surge in Derivatives Open Interest Amid Price Weakness - Markets Mojo
Markets Mojo
Blue Star Ltd. Sees Significant Open Interest Surge Amid Mixed Price Action - Markets Mojo
Markets Mojo
Blue Star Ltd. Sees Significant Open Interest Surge Amidst Weak Price Performance - Markets Mojo
Markets Mojo
Blue Star Ltd. Sees Sharp Open Interest Surge Amid Sustained Price Rally - Markets Mojo
Markets Mojo
Recent context
- ·A Simply Wall St report (14 May 2026) noted issues beyond sluggish earnings for Blue Star, citing concerns that extend to underlying business quality.
- ·Multiple Markets Mojo reports across April–May 2026 flagged sharp surges in derivatives open interest alongside price weakness, with the most recent (7 May) describing the pattern as "sharp" — elevated OI during price decline has historically preceded both capitulation and continuation.
- ·The 52-week high stands at approximately ₹2,040 (implied by 20.07% drawdown from ₹1,630.6); nearest charted support is at ₹1,450, approximately 11.1% below current price.
Strengths
- +5-year earnings CAGR of 17.1% indicates the business has expanded its bottom line at pace, outrunning the 1.9% revenue CAGR and suggesting improving unit economics.
- +Forward PE of 39.7 is materially below the trailing PE of 65.1, implying analyst consensus expects a significant step-up in earnings over the near term if estimates are realised.
- +ROE has been above 15% in 4 of the measured years (16.22% most recent), placing it 3rd of 6 among Consumer Goods peers on that metric.
- +Lowest PE (65.1) among the five comparable peers in the sector where peers range from 72.2 (Titan) to 95.4 (DMart), and ahead of Asian Paints at 65.5.
Weaknesses
- −D/E of 23.59 is structurally elevated; debt trend is characterised as rising and FCF was positive in only 1 measured year, meaning the company cannot reliably cover or reduce debt from internal cash flows.
- −Quality score of 32 ranks 5th of 6 Consumer Goods peers, with consistency score of 56 and profit margin of 4.23% — thin operating cushion for a capital-intensive consumer durable business.
- −Price has declined 15.82% over 3 months and trades 10.8% below the 200-DMA, with RSI at 35.41 and a 20.07% drawdown from the 52-week high.
- −Analyst mean rating of 2.71 across 23 analysts (1–5 scale, lower = more constructive) is at the mid-range of the scale — notably less constructive than would be typical for a consensus growth name in the sector.
Open questions
- ?Does the 17.1% 5-year earnings CAGR reflect genuine operating leverage, or is it partially driven by one-off tax relief, low base years, or accounting items that may not recur?
- ?How has Blue Star managed its rising debt load — what proportion is working capital financing versus long-term capex, and what are the interest coverage trends over the past 3 years?
- ?The forward PE of 39.7 implies a significant earnings jump relative to trailing earnings: what specific catalysts (capacity expansion, summer AC cycle, new segments) underpin analyst estimates?
- ?With derivatives open interest surging during price weakness across multiple sessions, what does the composition of OI (put vs call, roll-over patterns) suggest about near-term positioning in the stock?
Peer comparison: Consumer Goods
Ranks 5 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| BLUESTARCO | Blue Star Ltd.You're viewing | 65.1 | +16.2% | 32 |
| Industry avg | across 5 peers | 79.7 | +19.6% | 37 |
| TRENT | Trent Ltd. | 85.7 | +27.1% | 49 |
| ETERNAL | Eternal Ltd. | — | +1.2% | 41 |
| DMART | Avenue Supermarts Ltd. | 95.4 | +12.9% | 37 |
| TITAN | Titan Company Ltd. | 72.2 | +37.1% | 34 |
| ASIANPAINT | Asian Paints Ltd. | 65.5 | — | 23 |
Technical state
Current price
₹1,630.60
SMA 50
₹1,778.40
SMA 200
₹1,828.76
RSI (14)
35.4 (neutral)
From 52w high
-20.1%
1Y return
+2.8%
3M return
-15.8%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highD/E of 23.59 is exceptionally high for a Consumer Goods manufacturer; FCF was positive in only 1 of the measured years, limiting organic debt-service capacity and raising solvency risk if revenue growth (5y CAGR: 1.9%) stalls further.
- high5-year earnings CAGR of 17.1% contrasts with a profit margin of just 4.23% and a quality score of 32 — ranked 5th of 6 Consumer Goods peers — indicating that earnings growth has not translated into structural profitability improvement.
- mediumPrice of ₹1,630.6 is 8.3% below the 50-DMA (₹1,778.4) and 10.8% below the 200-DMA (₹1,828.76); down 15.82% over 3 months and 20.07% from the 52-week high. RSI at 35.41, approaching oversold territory.
- mediumDebt trend is rising with FCF positive in only 1 measured year; consistency score of 56 and ROE above 15% in only 4 years reflects uneven capital returns over the measured period.
- lowNews coverage is sparse (8 articles total) with 7 neutral and 1 negative; all top headlines originate from Markets Mojo, limiting breadth of sentiment signal.
Cross-section contradictions
- 5-year earnings CAGR is reported at 17.1% (positive growth) while profit margin stands at 4.23% and quality score ranks last (5th of 6) among Consumer Goods peers — accelerating earnings on thin and bottom-ranked quality metrics warrants scrutiny of what is driving the growth figure.
- Multiple news headlines cite surging derivatives open interest while price has declined 15.82% over 3 months — elevated OI accompanying sustained price weakness may reflect hedging or net short positioning rather than directional demand.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days