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 reasonable 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

-0.5%

NSEI:BLUESTARCO

5.2%

IN Building

-1.0%

IN Market


1 Year Return

10.0%

NSEI:BLUESTARCO

-4.7%

IN Building

-11.5%

IN Market

BLUESTARCO outperformed the Building industry which returned -4.7% over the past year.

BLUESTARCO outperformed the Market in India which returned -11.5% over the past year.


Share holder returns

BLUESTARCOIndustryMarket
7 Day-0.5%5.2%-1.0%
30 Day1.6%5.3%-0.9%
90 Day-8.9%-8.3%-7.0%
1 Year11.6%10.0%-4.2%-4.7%-9.8%-11.5%
3 Year42.9%37.2%19.6%17.5%16.9%11.0%
5 Year126.6%110.6%91.3%84.7%33.6%21.0%

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 based on future cash flows and its price relative to the stock market?

39.59x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Blue Star's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Blue Star's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Blue Star is overvalued based on earnings compared to the IN Building industry average.

Blue Star is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Blue Star is poor value based on expected growth next year.


Price Based on Value of Assets

Blue Star is overvalued based on assets compared to the IN Building industry average.


Next Steps

Future Growth

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

20.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Blue Star's revenue is expected to grow by 13.2% yearly, however this is not considered high growth (20% yearly).

Blue Star's earnings are expected to grow significantly at over 20% yearly.

Blue Star's revenue growth is expected to exceed the India market average.

Blue Star's earnings growth is expected to exceed the India market average.

Blue Star's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Blue Star will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Blue Star has delivered over 20% year on year earnings growth in the past 5 years.

Blue Star's 1-year earnings growth is less than its 5-year average (6.5% vs 25.1%)

Blue Star's earnings growth has exceeded the IN Building industry average in the past year (6.5% vs -5.5%).


Return on Equity

Blue Star has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Blue Star used its assets less efficiently than the IN Building industry average last year based on Return on Assets.


Return on Capital Employed

Blue Star has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Blue Star's financial position?


Financial Position Analysis

Blue Star is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Blue Star's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Blue Star's level of debt (39.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (99.4% vs 39.7% today).

Debt is well covered by operating cash flow (75.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 12x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 7.7x debt.


Next Steps

Dividend

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

1.45%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Blue Star's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.57%).

Blue Star's dividend is below the markets top 25% of dividend payers in India (2.35%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

B. Thiagarajan 0

3.4yrs

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

B.'s remuneration is higher than average for companies of similar size in India.

B.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.4yrs

Average Tenure

54.5yo

Average Age

The tenure for the Blue Star management team is about average.


Board Age and Tenure

2.0yrs

Average Tenure

63yo

Average Age

The average tenure for the Blue Star board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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₹1,146,01112 Jun 19
Kapil Mehrotra
EntityIndividual
Shares1,500
Max Price₹764.01
Sell₹1,006,86707 Jun 19
Haresh Khatwani
EntityIndividual
Shares1,325
Max Price₹810.03
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₹3,362,77824 May 19
Ashok Bhat
EntityIndividual
Shares4,500
Max Price₹750.00
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
Sell₹1,064,83517 Oct 18
V. Ashok
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares1,892
Max Price₹562.81
Sell₹1,423,32404 Oct 18
Ashok Bhat
EntityIndividual
Shares2,605
Max Price₹546.38

Ownership Breakdown


Management Team

  • B. Thiagarajan

    MD & Executive Director

    • Tenure: 3.4yrs
    • Compensation: ₹53.64m
  • P. Rao (55yo)

    President of Electro-Mechanical Projects & Customer Service

    • Tenure: 0.7yrs
    • Compensation: ₹4.72m
  • Vir Advani (43yo)

    Vice Chairman & MD

    • Tenure: 0.4yrs
    • 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: 3.2yrs
  • C. P. Menon (57yo)

    President of Sales

    • Tenure: 0yrs
  • Neeraj Basur

    Chief Financial Officer

    • Tenure: 5.1yrs
    • Compensation: ₹19.88m
  • V. Ashok

    Chief Human Resources Officer

    • Tenure: 0.7yrs
  • 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: 1.8yrs
    • Compensation: ₹2.33m
  • Suneel Advani (75yo)

    Chairman Emeritus

    • Tenure: 0.4yrs
    • Compensation: ₹4.45m
  • Ashok Advani (78yo)

    Chairman Emeritus

    • Tenure: 2.8yrs
    • Compensation: ₹2.19m
  • B. Thiagarajan

    MD & Executive Director

    • Tenure: 3.4yrs
    • Compensation: ₹53.64m
  • Shailesh Haribhakti (63yo)

    Chairman of the Board

    • Tenure: 0.4yrs
    • Compensation: ₹2.40m
  • Sam Balsara

    Independent Director

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

    Vice Chairman & MD

    • Tenure: 0.4yrs
    • Compensation: ₹85.41m
  • Rumjhum Chatterjee (60yo)

    Independent Director

    • Tenure: 0.6yrs
    • 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: ₹69.264b
  • 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 Analysis2019/09/18 12:43
End of Day Share Price2019/09/18 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.