NSEI:BLUESTARCO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with high growth potential 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


Market Performance


7 Day Return

3.1%

BLUESTARCO

-0.05%

IN Building

3.8%

IN Market


1 Year Return

56.8%

BLUESTARCO

17.2%

IN Building

6.0%

IN Market

Return vs Industry: BLUESTARCO exceeded the Indian Building industry which returned 17.2% over the past year.

Return vs Market: BLUESTARCO exceeded the Indian Market which returned 6% over the past year.


Shareholder returns

BLUESTARCOIndustryMarket
7 Day3.1%-0.05%3.8%
30 Day5.4%-1.0%2.9%
90 Day11.1%2.4%2.9%
1 Year59.2%56.8%17.8%17.2%8.2%6.0%
3 Year61.8%55.4%21.5%19.3%23.0%16.7%
5 Year160.8%142.4%97.5%90.8%43.6%30.0%

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?

45.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BLUESTARCO (₹832.5) is trading above our estimate of fair value (₹305.21)

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


Price To Earnings Ratio

PE vs Industry: BLUESTARCO is poor value based on its PE Ratio (45.3x) compared to the Building industry average (16.6x).

PE vs Market: BLUESTARCO is poor value based on its PE Ratio (45.3x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: BLUESTARCO is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: BLUESTARCO is overvalued based on its PB Ratio (9.1x) compared to the IN Building industry average (1x).


Next Steps

Future Growth

How is Blue Star forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

22.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLUESTARCO's forecast earnings growth (22.5% per year) is above the savings rate (7.6%).

Earnings vs Market: BLUESTARCO's earnings (22.5% per year) are forecast to grow faster than the Indian market (18% per year).

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

Revenue vs Market: BLUESTARCO's revenue (13.5% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: BLUESTARCO's revenue (13.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BLUESTARCO's Return on Equity is forecast to be high in 3 years time (25.1%)


Next Steps

Past Performance

How has Blue Star performed over the past 5 years?

25.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BLUESTARCO's earnings have grown significantly by 25.1% per year over the past 5 years.

Accelerating Growth: BLUESTARCO's earnings growth over the past year (6.5%) is below its 5-year average (25.1% per year).

Earnings vs Industry: BLUESTARCO earnings growth over the past year (6.5%) exceeded the Building industry 0.9%.


Return on Equity

High ROE: BLUESTARCO's Return on Equity (20.1%) is considered high.


Return on Assets

ROA vs Industry: BLUESTARCO's Return on Assets is below or equal to the Building industry average last year.


Return on Capital Employed

ROCE Improving: BLUESTARCO has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Blue Star's financial position?


Financial Position Analysis

Short Term Liabilities: BLUESTARCO's short term assets (₹26.6B) exceeds its short term liabilities (₹24.5B)

Long Term Liabilities: BLUESTARCO's short term assets (26.6B) exceeds its long term liabilities (271.6M)


Debt to Equity History and Analysis

Debt Level: BLUESTARCO's debt to equity ratio (39.7%) is considered satisfactory

Reducing Debt: BLUESTARCO's debt to equity ratio has reduced from 99.4% to 39.7% over the past 5 years.

Debt Coverage: BLUESTARCO's debt is well covered by operating cash flow (75.8%).

Interest Coverage: BLUESTARCO's interest payments on its debt are well covered by EBIT (12x coverage).


Balance Sheet

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

Debt Coverage by Assets: BLUESTARCO's debt is covered by short term assets (assets are 7.655020x debt).


Next Steps

Dividend

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

1.21%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%0.6%markettop25%2.4%industryaverage0.5%forecastin3Years1.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BLUESTARCO's dividend (1.21%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: BLUESTARCO's dividend (1.21%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.9%), BLUESTARCO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BLUESTARCO's dividends in 3 years are forecast to be well covered by earnings (35.7% payout ratio).


Next Steps

Management

What is the CEO of Blue Star's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

B. Thiagarajan 0

3.5yrs

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 ($USD754.74K) is about average for companies of similar size in the Indian market ($USD364.54K).

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


Management Age and Tenure

3.5yrs

Average Tenure

54.5yo

Average Age

Experienced Management: BLUESTARCO's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

2.1yrs

Average Tenure

63yo

Average Age

Experienced Board: BLUESTARCO's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: BLUESTARCO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹7,892,99324 Sep 19
R. Aravindan
EntityIndividual
Shares10,000
Max Price₹793.73
Sell₹1,146,01112 Jun 19
Kapil Mehrotra
EntityIndividual
Shares1,500
Max Price₹764.01
Sell₹3,229,59312 Jun 19
R. Aravindan
EntityIndividual
Shares4,000
Max Price₹807.40
Sell₹1,984,70712 Jun 19
Kapil Mehrotra
EntityIndividual
Shares2,500
Max Price₹793.88
Sell₹1,006,86707 Jun 19
Haresh Khatwani
EntityIndividual
Shares1,325
Max Price₹810.03
Sell₹3,362,77824 May 19
Ashok Bhat
EntityIndividual
Shares4,500
Max Price₹750.00
Sell₹1,120,02024 May 19
Debashish Roy
EntityIndividual
Role
Head of Research
Executive Vice President of R&D and Procurement
Shares1,500
Max Price₹765.22
Sell₹3,448,48808 Apr 19
R. Aravindan
EntityIndividual
Shares5,000
Max Price₹689.70
Sell₹1,687,25002 Apr 19
Debashish Roy
EntityIndividual
Role
Head of Research
Executive Vice President of R&D and Procurement
Shares2,500
Max Price₹675.50
Sell₹1,321,43513 Mar 19
R. Aravindan
EntityIndividual
Shares46,011
Max Price₹28.72
Sell₹2,079,64207 Mar 19
R. Aravindan
EntityIndividual
Shares3,291
Max Price₹631.92
Sell₹1,001,36117 Dec 18
R. Aravindan
EntityIndividual
Shares1,540
Max Price₹650.23
Sell₹10,117,88411 Dec 18
R. Aravindan
EntityIndividual
Shares15,345
Max Price₹659.36
Sell₹1,222,32922 Nov 18
Debashish Roy
EntityIndividual
Role
Head of Research
Executive Vice President of R&D and Procurement
Shares2,000
Max Price₹611.16

Ownership Breakdown


Management Team

  • B. Thiagarajan

    MD & Executive Director

    • Tenure: 3.5yrs
    • Compensation: ₹53.64m
  • P. Rao (55yo)

    President of Electro-Mechanical Projects & Customer Service

    • Tenure: 0.8yrs
    • Compensation: ₹4.72m
  • Vir Advani (43yo)

    Vice Chairman & MD

    • Tenure: 0.5yrs
    • Compensation: ₹85.41m
  • Debashish Roy (54yo)

    Executive Vice President of R&D and Procurement

    • Tenure: 0yrs
    • Compensation: ₹10.21m
  • Vijay Devadiga

    Company Secretary & Compliance Officer

    • Tenure: 4.3yrs
    • Compensation: ₹5.31m
  • Suresh Iyer

    Chief Information Officer

    • Tenure: 3.3yrs
  • C. P. Menon (57yo)

    President of Sales

    • Tenure: 0yrs
  • Neeraj Basur

    Chief Financial Officer

    • Tenure: 5.2yrs
    • Compensation: ₹19.88m
  • V. Ashok

    Chief Human Resources Officer

    • Tenure: 0.8yrs
  • Girish Hingorani

    Head of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Dinesh Vaswani (57yo)

    Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: ₹2.20m
  • Anil Harish (65yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: ₹2.33m
  • Suneel Advani (75yo)

    Chairman Emeritus

    • Tenure: 0.5yrs
    • Compensation: ₹4.45m
  • Ashok Advani (78yo)

    Chairman Emeritus

    • Tenure: 2.9yrs
    • Compensation: ₹2.19m
  • B. Thiagarajan

    MD & Executive Director

    • Tenure: 3.5yrs
    • Compensation: ₹53.64m
  • Shailesh Haribhakti (63yo)

    Independent Chairman of the Board

    • Tenure: 0.5yrs
    • Compensation: ₹2.40m
  • Sam Balsara

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: ₹2.25m
  • Vir Advani (43yo)

    Vice Chairman & MD

    • Tenure: 0.5yrs
    • Compensation: ₹85.41m
  • Rumjhum Chatterjee (59yo)

    Independent Director

    • Tenure: 0.7yrs
    • Compensation: ₹467.00k
  • Rajiv Lulla

    Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: ₹2.03m

Company Information

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


Key Information

  • Name: Blue Star Limited
  • Ticker: BLUESTARCO
  • Exchange: NSEI
  • Founded: 1943
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: ₹79.420b
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:48
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.