Blue Star Ltd.
Consumer Goods · NSE
52-week range
₹1,450 – ₹2,040
From 52w high
-17.0%
RSI (14)
40.1
vs SMA 50 / 200
↓ 50 · ↓ 200
Blue Star is an Indian air-conditioning and commercial refrigeration manufacturer trading at ₹1,692.80, 17% below its 52-week high and below both its 50-DMA (₹1,797) and 200-DMA (₹1,832). The stock has returned 0.63% over the past 12 months against a trailing PE of 65.75 and a forward PE of 39.09, while 5-year earnings have contracted 39.1% cumulatively and debt-to-equity stands at 33.08.
- ✓Revenue has grown at a 4.2% compound annual rate over 5 years, indicating the top line has expanded even as earnings compressed — suggesting the core business volume is growing.
- ✓Forward PE of 39.09 is meaningfully lower than the trailing PE of 65.75, implying that analyst earnings estimates embed a significant recovery in profitability in the near term.
- ✓At a trailing PE of 65.75, BLUESTARCO is priced below three of its five Consumer Goods peers (Trent at 87.78, DMart at 96.03, Titan at 78.89), ranking 2nd lowest on PE among the 6-stock comparison group.
- ✓Mean analyst rating of 2.71 across 23 analysts (1–5 scale, lower = more constructive) indicates a range of views within the coverage universe rather than a uniform negative or positive stance.
- ✗5-year cumulative earnings growth of -39.1% reflects a prolonged profitability decline, not a transient shock, and the current profit margin of 4% leaves little buffer against cost or demand variability.
- ✗Debt-to-equity of 33.08 is structurally high; FCF has been positive in only 1 of the tracked years, meaning the company has rarely generated sufficient cash to self-fund operations or reduce leverage.
- ✗Quality score of 19 ranks BLUESTARCO 6th of 6 peers in the Consumer Goods comparison group, the weakest position across the sector cohort on this composite metric.
- ✗Price has declined 9.97% over 3 months and remains below both key moving averages (50-DMA and 200-DMA), with a 17% drawdown from the 52-week high and no current technical support from trend indicators.
- ·Multiple news items over the past two weeks note a sharp surge in derivatives open interest while price has simultaneously weakened, a combination that can reflect increased hedging activity or speculative short positioning rather than directional accumulation.
- ·All 8 recent news articles originate from a single data aggregator (Markets Mojo) and carry neutral sentiment classification; there are no earnings announcements, management commentary, or sector-catalyst stories in the current news sample.
- ·The forward PE of 39.09 versus trailing PE of 65.75 implies consensus estimates project a roughly 40% step-up in earnings per share; whether that estimate ramp is grounded in order-book visibility or product-cycle assumptions is not captured in the available data.
- ?Does the 5-year earnings contraction reflect cyclical industry dynamics in the AC/refrigeration segment, or does it point to a structural margin challenge specific to Blue Star's competitive positioning?
- ?How is a debt-to-equity ratio of 33.08 being sustained — what is the nature and tenure of the debt (working-capital lines versus long-term borrowings) — and what does the debt-service schedule look like relative to the 4% profit margin?
- ?The forward PE of 39.09 implies a substantial earnings recovery: what are the key operating assumptions (volume growth, raw-material costs, pricing power) that would need to hold for that recovery to materialise?
- ?With derivatives open interest rising while price declines, who are the dominant participants in the options market for this stock, and does that activity reflect institutional hedging of existing long positions or new directional bets?
PE
65.8
Forward PE
39.1
ROE
—
Profit margin
+4.0%
D/E
33.08
Dividend yield
+0.5%
Quality score
19/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
1/5 yrs
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.Analysis generated 11 May 2026.