BSE:500067

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

High growth potential second-rate dividend payer.


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 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 500067's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.0%

500067

4.2%

IN Building

-0.5%

IN Market


1 Year Return

-11.1%

500067

34.1%

IN Building

14.8%

IN Market

Return vs Industry: 500067 underperformed the Indian Building industry which returned 36.2% over the past year.

Return vs Market: 500067 underperformed the Indian Market which returned 15.1% over the past year.


Shareholder returns

500067IndustryMarket
7 Day-2.0%4.2%-0.5%
30 Day-4.2%7.4%3.3%
90 Day16.8%37.0%20.5%
1 Year-9.7%-11.1%35.1%34.1%16.9%14.8%
3 Year6.6%1.8%24.4%16.8%7.0%1.8%
5 Year130.0%113.7%145.3%126.6%74.7%61.3%

Long-Term 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?

301.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500067 (₹755.65) is trading above our estimate of fair value (₹265.83)

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 (301.8x) compared to the IN Building industry average (24.4x).

PE vs Market: 500067 is poor value based on its PE Ratio (301.8x) compared to the Indian market (19x).


Price to Earnings Growth Ratio

PEG Ratio: 500067 is poor value based on its PEG Ratio (6.8x)


Price to Book Ratio

PB vs Industry: 500067 is overvalued based on its PB Ratio (9.4x) compared to the IN Building industry average (1.2x).


Next Steps

Future Growth

How is Blue Star forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

44.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500067's forecast earnings growth (44.6% per year) is above the savings rate (7%).

Earnings vs Market: 500067's earnings (44.6% per year) are forecast to grow faster than the Indian market (25.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500067's revenue (16.8% per year) is forecast to grow faster than the Indian market (12.4% per year).

High Growth Revenue: 500067's revenue (16.8% 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 (23%)


Next Steps

Past Performance

How has Blue Star performed over the past 5 years?

10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500067 has high quality earnings.

Growing Profit Margin: 500067's current net profit margins (0.6%) are lower than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: 500067's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: 500067's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500067 had negative earnings growth (-87.6%) over the past year, making it difficult to compare to the Building industry average (-15.1%).


Return on Equity

High ROE: 500067's Return on Equity (3.1%) is considered low.


Next Steps

Financial Health

How is Blue Star's financial position?


Financial Position Analysis

Short Term Liabilities: 500067's short term assets (₹22.6B) exceed its short term liabilities (₹18.3B).

Long Term Liabilities: 500067's short term assets (₹22.6B) exceed its long term liabilities (₹4.4B).


Debt to Equity History and Analysis

Debt Level: 500067's debt to equity ratio (96.5%) is considered high.

Reducing Debt: 500067's debt to equity ratio has increased from 74.9% to 96.5% over the past 5 years.

Debt Coverage: 500067's debt is not well covered by operating cash flow (14.7%).

Interest Coverage: 500067's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500067's dividend (1.32%) is higher than the bottom 25% of dividend payers in the Indian market (0.45%).

High Dividend: 500067's dividend (1.32%) is low compared to the top 25% of dividend payers in the Indian market (1.86%).


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: Unable to calculate sustainability of dividends as 500067 has not reported any payouts.


Future Payout to Shareholders

Future Dividend Coverage: 500067's dividends in 3 years are forecast to be well covered by earnings (47.6% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

B. Thiagarajan (62 yo)

4.75yrs

Tenure

₹51,750,000

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 ($USD709.05K) is above average for companies of similar size in the Indian market ($USD392.35K).

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


Leadership Team

NamePositionTenureCompensationOwnership
B. Thiagarajan
MD & Executive Director4.75yrs₹51.75m0.076%
₹ 55.0m
Vir Advani
Vice Chairman & MD1.75yrs₹50.00m1.17%
₹ 849.8m
Neeraj Basur
Chief Financial Officer6.42yrs₹19.88m0.043%
₹ 31.4m
Suresh Iyer
Chief Information Officer4.5yrsno datano data
Vijay Devadiga
Company Secretary & Compliance Officer5.58yrs₹5.31mno data
Girish Hingorani
Head of Corporate Communicationsno datano datano data
V. Ashok
Chief Human Resources Officer2yrsno datano data
Debashish Roy
Executive Vice President of R&D and Procurementno data₹10.21m0.011%
₹ 8.3m
P. Rao
President & COO of Electro-Mechanical Projects and Air Conditioning Solutions Group0.17yr₹4.72mno data
C. P. Menon
President & COO of Cooling and Purifications Appliances Group (CPAG)0.17yrno datano data
Prem Kalliath
Chief Executive Officer of Blue Star Engineering & Electronics Ltdno datano datano data
Dawood Ozair
Chief Executive Officer of Blue Star International FZCOno datano datano data

4.6yrs

Average Tenure

56yo

Average Age

Experienced Management: 500067's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
B. Thiagarajan
MD & Executive Director4.75yrs₹51.75m0.076%
₹ 55.0m
Vir Advani
Vice Chairman & MD1.75yrs₹50.00m1.17%
₹ 849.8m
Dinesh Vaswani
Non-Executive Director4.08yrs₹1.48m0.028%
₹ 20.4m
Anil Harish
Independent Director3.17yrs₹1.73mno data
Suneel Advani
Chairman Emeritus1.75yrs₹4.45m3.48%
₹ 2.5b
Ashok Advani
Chairman Emeritus4.17yrs₹2.19mno data
Shailesh Haribhakti
Non-Executive Independent Chairman of the Board1.75yrs₹2.70mno data
Sam Balsara
Independent Director3.58yrs₹1.53m0.011%
₹ 8.0m
Arvind Singhal
Independent Director1.92yrs₹1.60mno data
Sunaina Murthy
Non-Executive Director1.75yrs₹1.58m0.075%
₹ 54.8m
Rumjhum Chatterjee
Independent Director1.92yrs₹1.50mno data
Rajiv Lulla
Non-Executive Director4.08yrs₹1.58mno data

2.5yrs

Average Tenure

61yo

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: 500067 insiders have only sold shares 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: ₹72.780b
  • 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. The company operates in three segments: Electro-Mechanical Projects and Commercial Air Conditioning S...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/26 12:14
End of Day Share Price2021/01/25 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.