Blue Star (BLUESTARCO)

FairStock Score: 48/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-Graham investor, I look for a durable business, honest numbers, and a price that leaves room for error. Blue Star shows some quality: ROCE of 26.20%, ROE of 16.13%, debt/equity of only 0.24, Altman Z-Score of 5.12, and a Piotroski F-Score of 7/9. Sales growth of 18.01% and a five-year revenue CAGR of 17.43% suggest the home appliances franchise is expanding. Free cash flow is positive at ₹225 Cr, and promoters hold 36.48%, which gives some alignment. But the price is the problem. At ₹1,508, with book value of ₹166.90, the stock trades at P/B of 9.04, P/E of 60.98, and EV/EBITDA of 33.29. Graham Number is ₹289.97 and DCF intrinsic value is ₹89.40. That implies a margin of safety of -569.44%, which is no safety at all. Meanwhile profit growth is -36.11%, and the latest quarter produced only ₹81 Cr of net profit on ₹2,925 Cr of sales. The dividend yield is just 0.56%, so shareholders are paying a steep price for little current cash return. FairStock score of 48/100 simply confirms the mixed picture. I like the balance sheet and capital returns, but not the earnings trend or valuation. This looks like a cyclical appliance business priced as a perfect fast grower. I would wait for either profit recovery or a much lower price before calling it a value buy.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer