Blue Star Ltd.
ISIN: INE472A01039 • Market Cap: ₹30,801 Cr
The 5-Pillar Quality Audit for Blue Star Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (7.1%), Return on Capital Employed (22.0%), and equity compounding (15.4%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.18 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (9.7%) and 3Y PAT CAGR (6.9%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 60.49 vs PEG of — and Dividend Yield of 0.6%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 36.5%, backed by 41.0% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 22.0%)
Blue Star Ltd. generates exceptional return on capital employed of 22.0%, reflecting pricing power and competitive moat.
Deep Institutional Sponsorship (41.0%)
Mutual funds, domestic DIIs, and foreign FIIs hold 41.0%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Consumer Durables)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Consumer Durables space.
Quantitative Strategy Eligibility
Checking BLUESTARCO against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 68/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Consumer Durables Sector Peer Comparison
Compare BLUESTARCO directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Blue Star Ltd. (BLUESTARCO)Current | 68/100 | ₹30,801 Cr | 60.49 | 22.0% | 0.18 | — |
| Titan Company Ltd. (TITAN) | 70/100 | ₹4.50 Lakh Cr | 78.05 | 39.2% | 1.76 | View |
| Asian Paints Ltd. (ASIANPAINT) | 67/100 | ₹2.51 Lakh Cr | 52.73 | 24.4% | 0.11 | View |
| LG Electronics India Ltd. (LGEINDIA) | 65/100 | ₹1.12 Lakh Cr | 61.16 | 28.4% | 0.00 | View |
| Dixon Technologies (India) Ltd. (DIXON) | 82/100 | ₹88,626 Cr | 47.21 | 30.1% | 0.07 | View |
| Havells India Ltd. (HAVELLS) | 70/100 | ₹80,202 Cr | 49.11 | 22.7% | 0.00 | View |
Frequently Asked Questions: Blue Star Ltd.
Q:What is the 5-Pillar Fundamental Score for Blue Star Ltd. (BLUESTARCO)?
Blue Star Ltd. has a RupeeTools Fundamental Score of 68/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (70/100), Financial Health (84/100), Growth (55/100), Valuation (48/100), and Ownership Quality (78/100).
Q:Is BLUESTARCO fundamentally strong for long-term investment?
BLUESTARCO currently holds a moderate quality rating of 68/100. While it operates in the Consumer Durables sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does BLUESTARCO pass the Coffee Can Investing filter?
Yes! BLUESTARCO satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does BLUESTARCO compare against other Consumer Durables peers?
Within India's Consumer Durables sector, BLUESTARCO trades at a P/E of 60.49 and generates an ROCE of 22.0%. Compare its 5-Pillar score of 68/100 against top sector peers like Titan Company Ltd. (70/100), Asian Paints Ltd. (67/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.