Stock overview
| Ticker | BLUESTARCO |
| Sector | Consumer Durables |
| Market Cap | ₹ 38,700 Cr |
| CMP (Current Market Price) | ₹ 1,882 |
| 52-Week High/Low | ₹ 2,420/ ₹ 1,521 |
| P/E Ratio | 72x |
About Blue Star
Blue Star is one of India’s leading air conditioning, commercial refrigeration, and engineering companies. With over 80 years of legacy, the company is well-known for its strong brand in cooling solutions, HVAC projects, and commercial refrigeration. Apart from consumer products like room air conditioners, Blue Star also has a large B2B business catering to offices, hospitals, malls, IT parks, and industrial cooling. Over time, it has also expanded into water purifiers, air purifiers, and related consumer appliances.
The company operates across three major segments:
- Room Air Conditioners (RACs) & Consumer Appliances
- Commercial Refrigeration & Professional Appliances
- Electromechanical Projects (HVAC, MEP, and Facility Management)
Growth factors for Blue Star
- Air Conditioning Demand Boom: India’s low AC penetration (less than 10%) leaves massive headroom for growth. Rising temperatures, urbanization, and higher incomes are fueling demand.
- Government Push: Initiatives like “Make in India” and Production Linked Incentive (PLI) schemes support domestic AC and component manufacturing.
- Premiumization: Consumers are shifting towards inverter ACs, smart cooling, and energy-efficient appliances, boosting average selling prices.
- Commercial Real Estate Revival: Growth in IT parks, hospitals, airports, malls, and metros will benefit Blue Star’s HVAC projects.
- Export Expansion: Blue Star is pushing exports of cooling and refrigeration products, especially to the Middle East and Africa.
- Green Cooling Solutions: Increasing demand for energy-efficient and eco-friendly refrigerants will favor companies like Blue Star with strong R&D focus.
Detailed competition analysis for Blue Star
| Company | Market Cap | Revenue | P/E Multiple | RoCE |
| Blue Star | 38,700 Cr | ₹ 2,982 cr | 72x | 26% |
| Voltas | 45,400 Cr | ₹ 3,939 cr | 70x | 17% |
| Amber Enterprises | 24,600 cr | ₹ 3,449 cr | 89x | 14% |
| Crompton Gr | 21,200 cr | ₹ 1,998 cr | 40x | 19% |
Company valuation insights: Blue Star
As per the Discounted Cash Flow analysis:
It estimates the intrinsic value of Blue Star shares based on expected future cash flows:
- Intrinsic Value Estimate: ₹1990 per share
- Upside Potential: 6%
- WACC: 10,4%
- Terminal Growth Rate: 3.2%
Major risk factors affecting Blue Star
- High Competition: Faces stiff competition from MNCs like Daikin, LG, Samsung, and Indian peers like Voltas, Havells-Lloyd, and Godrej.
- Seasonal Dependence: Cooling business is dependent on summer demand; weak or delayed summers impact sales.
- High Input Costs: Prices of commodities like copper, aluminum, and compressors impact margins.
- Currency Volatility: As some parts are imported, sharp currency fluctuations can impact costs.
- Valuation Risk: Stock trades at premium valuations, which may limit near-term upside if earnings disappoint.
Outlook for 2025–26
- Short-Term: Growth to continue with strong festive demand, commercial project execution, and rising RAC penetration in Tier 2/3 cities.
- Medium-Term: India’s rising middle-class consumption, higher infrastructure spending, and export expansion will keep Blue Star in a strong growth trajectory.
- Long-Term: Increasing focus on sustainable cooling and premium appliances will drive profitability and maintain its leadership position.
Technical analysis of Blue Star
- Resistance: ₹1910
- Support: ₹1820
- Momentum: Neutral to Slightly Bearish
- RSI (Relative Strength Index): 47 (Neutral)
- 50-Day Moving Average: ₹1820
- 200-Day Moving Average: ₹1857
Blue Star stock recommendation by Ketan Mittal
While upside may be limited due to the stock being already overvalued, the fundamentals are sound and the business faces no structural issues.
Target Price: ₹2000 (12 months)If you found this helpful and want regular stock trade calls, check out my StockGro profile here: https://stockgro.onelink.me/vNON/6m6ykj0dConclusion
Blue Star stands as a strong consumer and engineering play on India’s rising cooling needs and infrastructure boom. With its powerful brand, diversified portfolio, and focus on innovation, the company is well-positioned for growth. However, investors must remain mindful of high competition, seasonality, and elevated valuations.
Overall, Blue Star represents a high-quality, long-term growth story in the Indian consumer and industrial cooling sector.
