BSE:500067

Stock Analysis Report

Executive Summary

Blue Star Limited operates as a central air conditioning and commercial refrigeration company in India and internationally.

Rewards

Earnings are forecast to grow 19.51% per year

Earnings grew by 45.5% over the past year

Risk Analysis

High level of non-cash earnings

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Blue Star's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500067 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.5%

500067

-1.5%

IN Building

-1.5%

IN Market


1 Year Return

41.4%

500067

12.9%

IN Building

10.7%

IN Market

Return vs Industry: 500067 exceeded the Indian Building industry which returned 12.9% over the past year.

Return vs Market: 500067 exceeded the Indian Market which returned 10.7% over the past year.


Shareholder returns

500067IndustryMarket
7 Day4.5%-1.5%-1.5%
30 Day-3.2%-0.7%-2.7%
90 Day5.4%5.4%1.3%
1 Year43.5%41.4%17.0%12.9%12.7%10.7%
3 Year55.4%49.2%30.6%22.8%22.0%15.1%
5 Year192.1%171.5%86.6%65.9%34.5%22.0%

Price Volatility Vs. Market

How volatile is Blue Star's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Blue Star undervalued compared to its fair value and its price relative to the market?

37.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500067 (₹832.45) is trading above our estimate of fair value (₹280.71)

Significantly Below Fair Value: 500067 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500067 is poor value based on its PE Ratio (37.4x) compared to the Building industry average (11.5x).

PE vs Market: 500067 is poor value based on its PE Ratio (37.4x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: 500067 is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: 500067 is overvalued based on its PB Ratio (9.2x) compared to the IN Building industry average (0.9x).


Next Steps

Future Growth

How is Blue Star forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

19.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500067's forecast earnings growth (19.5% per year) is above the savings rate (6.5%).

Earnings vs Market: 500067's earnings (19.5% per year) are forecast to grow slower than the Indian market (20.6% per year).

High Growth Earnings: 500067's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500067's revenue (12.6% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 500067's revenue (12.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500067's Return on Equity is forecast to be high in 3 years time (26.4%)


Next Steps

Past Performance

How has Blue Star performed over the past 5 years?

24.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500067 has a high level of non-cash earnings.

Growing Profit Margin: 500067's current net profit margins (3.8%) are higher than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: 500067's earnings have grown significantly by 24.4% per year over the past 5 years.

Accelerating Growth: 500067's earnings growth over the past year (45.5%) exceeds its 5-year average (24.4% per year).

Earnings vs Industry: 500067 earnings growth over the past year (45.5%) exceeded the Building industry 1.6%.


Return on Equity

High ROE: 500067's Return on Equity (24.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Blue Star's financial position?


Financial Position Analysis

Short Term Liabilities: 500067's short term assets (₹22.8B) exceed its short term liabilities (₹20.4B).

Long Term Liabilities: 500067's short term assets (₹22.8B) exceed its long term liabilities (₹1.2B).


Debt to Equity History and Analysis

Debt Level: 500067's debt to equity ratio (38.8%) is considered satisfactory.

Reducing Debt: 500067's debt to equity ratio has reduced from 91.4% to 38.8% over the past 5 years.

Debt Coverage: 500067's debt is well covered by operating cash flow (150.8%).

Interest Coverage: 500067's interest payments on its debt are well covered by EBIT (25.1x coverage).


Balance Sheet

Inventory Level: 500067 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500067's debt is covered by short term assets (assets are 6.8x debt).


Next Steps

Dividend

What is Blue Star's current dividend yield, its reliability and sustainability?

1.20%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: 500067's dividend (1.2%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 500067's dividend (1.2%) is low compared to the top 25% of dividend payers in the Indian market (2.58%).


Stability and Growth of Payments

Stable Dividend: 500067's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500067's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.9%), 500067's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500067's dividends in 3 years are forecast to be well covered by earnings (39.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

B. Thiagarajan 0

3.8yrs

Tenure

₹53,644,000

Compensation

Mr. B. Thiagarajan has been Managing Director of Blue Star Limited since April 1, 2019. Mr. Thiagarajan was Joint Managing Director of Blue Star Limited from April 1, 2016 to April 1, 2019. He served as th ...


CEO Compensation Analysis

Compensation vs Market: B.'s total compensation ($USD749.64K) is above average for companies of similar size in the Indian market ($USD387.20K).

Compensation vs Earnings: B.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
B. Thiagarajan
MD & Executive Director3.8yrs₹53.64m0.076% 60.8m
Vir Advani
Vice Chairman & MD0.8yrs₹85.41m1.17% 939.9m
Neeraj Basur
Chief Financial Officer5.5yrs₹19.88mno data
Suresh Iyer
Chief Information Officer3.6yrsno datano data
Vijay Devadiga
Company Secretary & Compliance Officer4.7yrs₹5.31mno data
Girish Hingorani
Head of Corporate Communications0yrsno data0.0050% 4.0m
C. P. Menon
President of Sales0yrsno datano data
V. Ashok
Chief Human Resources Officer1.1yrsno data0.020% 16.2m
P. Rao
President of Electro-Mechanical Projects & Customer Service1.1yrs₹4.72mno data
Debashish Roy
Executive Vice President of R&D and Procurement0yrs₹10.21m0.011% 9.2m

3.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: 500067's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
B. Thiagarajan
MD & Executive Director3.8yrs₹53.64m0.076% 60.8m
Vir Advani
Vice Chairman & MD0.8yrs₹85.41m1.17% 939.9m
Dinesh Vaswani
Non-Executive Director3.2yrs₹2.20m0.028% 22.5m
Anil Harish
Independent Director2.3yrs₹2.33mno data
Suneel Advani
Chairman Emeritus0.8yrs₹4.45m3.48% 2.8b
Ashok Advani
Chairman Emeritus3.3yrs₹2.19m2.7% 2.2b
Shailesh Haribhakti
Independent Chairman of the Board0.8yrs₹2.40mno data
Sam Balsara
Independent Director2.7yrs₹2.25m0.011% 8.9m
Rumjhum Chatterjee
Independent Director1yrs₹467.00kno data
Rajiv Lulla
Non-Executive Director3.2yrs₹2.03mno data

2.5yrs

Average Tenure

63yo

Average Age

Experienced Board: 500067's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Blue Star Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Blue Star Limited
  • Ticker: 500067
  • Exchange: BSE
  • Founded: 1943
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: ₹80.494b
  • Shares outstanding: 96.31m
  • Website: https://www.bluestarindia.com

Number of Employees


Location

  • Blue Star Limited
  • Kasturi Buildings
  • Mohan T Advani Chowk
  • Mumbai
  • Maharashtra
  • 400020
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500067BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 1995
BLUESTARCONSEI (National Stock Exchange of India)YesEquity SharesININRFeb 1995

Biography

Blue Star Limited operates as a central air conditioning and commercial refrigeration company in India and internationally. The company operates in three segments: Electro-Mechanical Projects and Packaged Air Conditioning Systems, Unitary Products, and Professional Electronics and Industrial Systems. The Electro-Mechanical Projects and Packaged 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. As of October 17, 2019, the company operated 200 brand stores. Blue Star Limited was founded in 1943 and is headquartered in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 12:50
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.