Bluestone Jewel (BLUESTONE)
TurnaroundFairStock Score: 31/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹845.25 |
| Market Cap | ₹12,911.14 Cr |
| P/E Ratio | 222.43 |
| ROCE | -0.57% |
| ROE | 0.97% |
| Dividend Yield | 0% |
| Profit Growth | 365.85% |
| Debt/Equity | 1.1 |
| Sales Growth | 49.6% |
| Free Cash Flow | ₹-2,68,27,312.64 Cr |
| Promoter Holding | 16.36% |
| 52-Week Range | ₹399.8 — ₹926.7 |
| Sector | Consumer Durables |
| Book Value | ₹118.29 |
Strengths
- Sales growth of 27.39% indicates strong demand momentum.
- Latest quarter net profit of ₹71 Cr on ₹748 Cr sales shows potential operating leverage if sustained.
- Piotroski F-Score of 6/9 suggests financial health is moderate, not terrible.
- Valuation has cooled from the 52-week high of ₹926.70 to ₹547.95.
Concerns
- P/E of 0.00, ROE of 0.97%, and ROCE of -0.57% point to poor returns and unreliable earnings history.
- Negative free cash flow and zero dividend yield mean reported profits are not cash-backed and shareholders get no income.
- P/B of 4.75 versus book value of ₹115.26 is expensive for a business earning sub-1% ROE.
- Debt/equity of 1.10 and promoter holding of only 16.36% create balance sheet and governance risk.
AI Analysis
Let me begin with what attracts me. Sales grew 27.39%, and the latest quarter delivered ₹748 Cr revenue and ₹71 Cr net profit. A profit growth figure of 365.85% sounds spectacular, but it is flattered by a weak base. One strong quarter does not make an investment. The trailing P/E is 0.00, ROE is just 0.97%, and ROCE is negative at -0.57%. These are not the numbers of a high-quality compounder. Book value is ₹115.26, yet the market prices the stock at ₹547.95, or 4.75 times book. Paying nearly five times book for near-zero return on equity is the opposite of a margin of safety. Free cash flow is negative, so reported profit is not converting into cash. Debt/equity of 1.10 is not catastrophic, but combined with zero dividend yield, the shareholder relies entirely on capital appreciation. The FairStock Score of 11/100 labels this risky, and I agree. Promoter holding of 16.36% is a red flag in India: promoters have limited skin in the game. At a ₹6,641 Cr market cap, I am paying for future growth that is not visible in return on capital. The stock has fallen from ₹926.70 to ₹547.95, but a declining price is not a reason to buy. I need durable earnings, positive free cash flow, and improving returns before I can call this a value investment. This has the look of a turnaround or cyclical situation, not a franchise with an economic moat. I will keep watching, but for now this belongs in the too-hard pile.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer