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Blue Star Ltd

NSE: BLUESTARCO BSE: 500067

1880.90

(1.02)%

Sat, 07 Feb 2026, 02:30 am

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are covered by earnings (1.5x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
  • Blue Star's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Blue Star's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Blue Star's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Blue Star's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Blue Star is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
  • Performance (ROE) is expected to be above the current IN Building industry average.
  • An improvement in Blue Star's performance (ROE) is expected over the next 3 years.
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Cons

  • Cash flow for Blue Star is expected to decrease over the next 2 years.
  • Blue Star's earnings are expected to grow by 16.6% yearly, however this is not considered high growth (20% yearly).
  • Blue Star's earnings growth is positive but not above the India market average.
  • Blue Star's earnings are expected to decrease over the next year.
  • Blue Star's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Blue Star's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Blue Star's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
  • Blue Star's revenue growth is positive but not above the India market average.

health

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Pros

  • Blue Star is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Blue Star is profitable, therefore cash runway is not a concern.
  • Blue Star is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (101.9%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 5.9x debt.
  • Blue Star's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (87.3% vs 57.2% today).
  • Interest payments on debt are well covered by earnings (EBIT is 6.6x coverage).
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Cons

  • Blue Star's level of debt (57.2%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • B.'s compensation has been consistent with company performance over the past year, both up more than 20%.
  • The tenure for the Blue Star management team is about average.
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Cons

  • The average tenure for the Blue Star board of directors is less than 3 years, this suggests a new board.
  • B.'s remuneration is higher than average for companies of similar size in India.

misc

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Pros

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    Cons

    • Blue Star has significant price volatility in the past 3 months.

    past

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    Pros

    • Blue Star has delivered over 20% year on year earnings growth in the past 5 years.
    • Blue Star has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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    Cons

    • Blue Star's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • Blue Star used its assets less efficiently than the IN Building industry average last year based on Return on Assets.
    • Blue Star has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • Blue Star's 1-year earnings growth is negative, it can't be compared to the IN Building industry average.

    value

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    Pros

    • BSE:500067 is up 5.7% along with the Building industry (6.6%) over the past month.
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    Cons

    • 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%).
    • Blue Star is overvalued based on assets compared to the IN Building industry average.
    • Blue Star is poor value based on expected growth next year.
    • 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.
    • 500067 underperformed the Building industry which returned -33.2% over the past year.
    • 500067 underperformed the Market in India which returned -14.5% over the past year.
    • BSE:500067 is up 5.7% underperforming the market in India which returned 8% over the past month.

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