How Blue Star turned 1 lakh into 2.17 Crore; Should you invest ?
Air Conditioners- India
- In 2024, the revenue in the Air Conditioners market in India amounts to US 5.88bn. (Rs. 49,000 Crore)
- It is projected to grow annually by 16.56% (CAGR 2024-2029). So in 2029 AC market will reach to US 11.2 bn (Rs. 1.1 Lakh Crore)
- India’s air conditioner market is experiencing a surge in demand due to the country’s rising middle class and increasing urbanization.
- Looking ahead to 2029, the volume in the Air Conditioners market is expected to reach 22.9m pieces units.
Air Conditioner Market Share – India
Following in the post on compilation list of the best air conditioner brands in India. Among these companies Voltas leads with market share of 21 % but in this we are going to talk about the Blue Star company which is into air conditioning & water purifier & how this company is consistently increasing its market share as well as the revenue in India
Blue Star: Company Snapshots
- Blue star manufacturers air purifiers, air coolers, water purifiers, cold storage and speciality products.
- Commenced operations in 1943, with c. 80 years of operations in India
- Currently presence in 18+ countries & it has 6% exports outside India (USA, Europe)
- It is the largest after-sales service provider for air conditioning and commercial refrigeration products in the country.
Revenue Breakup
- Electro-Mechanical Projects (EMP)– Large central AC & ventilation projects
- Commercial Air Conditioning– Market leader in Conventional and Inverter Ducted Air Conditioning Systems
- Unitary products- ACs, Air Coolers, Water Purifiers, Commercial Refrigeration etc
- Professional Electronics and Industrial Systems (PE & IS)– Specialized Technology Solutions
Fundamental Analysis
Key Ratios
| Market Cap | ₹ 33,722 Cr. |
| Current Price | ₹ 1,640 |
| High/Low | ₹ 1,907 / 702 |
| Stock PE | 80.9 |
| Industry PE | 80.9 |
| ROCE | 25.50% |
| ROE | 21.20% |
| PEG Ratio | 4.72 |
| Debt To Equity | 0.09 |
Financial Trend
Revenue: 5 Year Comparison
- 2020: 5,360 crore
- 2024: 9,685 crore
- 5 Year Percentage change: 80.73 %
Net Profit: 5 Year Comparison
- 2020: 143 crore
- 2024: 415 crore
- 5 Year Percentage change:190.91 %
Shareholding Pattern
Change in Shareholding Pattern
| Mar-23 | Jun-24 | 1 Year Change | |
| Promoters | 38.79% | 36.53% | -2.26% |
| FIIs | 10.45% | 17.04% | 6.59% |
| DIIs | 25.13% | 23.56% | -1.57% |
| Public | 25.65% | 22.85% | -2.80% |
Stock Price Returns
1 Year Stock Returns
- Blue Star has given 1 Year returns of 107.25 %
- 1 Lakh invested in July 2023 would have become 2.07 Lakhs in July 2024
5 Year Stock Returns
- Blue Star has given 1 Year returns of 338.78 %
- 1 Lakh invested in July 2020 would have become 4.38 Lakhs in July 2024
20 Year Stock Returns
1 lakh into 2.17 Crore
- Blue Star has given 20 Year returns of 21,767.33 %
- 1 Lakh invested in July 2003 would have become 2.17 Crore in July 2024
Company Valuation
- Current PE- 80.9
- Median PE- 58.3
- Company is Overvalued: As the Median PE is less than the Current PE, so we can say that company is company is overvalued.
Should you Invest ?
- Blue Star is Fundamentally strong company & it also has minimal debt
- Company is consistently performing good in Revenue & Profit Growth
- As per the current company valuation it is slightly overvalued but when we compare it with Industry PE =80.9 & Current PE=80.9, it is fairly valued
- Blue Star being the Midcap company (Rs. 33,000 Crore) market cap it has huge potential in upcoming 10 years.
- If you are invested in this company then stay invested or else you can also make fresh investment at this CMP of (Rs. 1,640) but make sure to hold this company for the next 10 year it will give more than 5x returns.
- Do not invest in the company only for the sake of short term profits.
Check Out this- Zensar Technology is it the next TCS ?
Disclaimer
- Money Minded School is not a SEBI registered investment advisor, Please do your own research before investing
- This article is a complete guide about Blue Star Ltd.
- These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
- Also, We have talked in detail about the share’s future prospects and growth potential.
- Hopefully, this information will help you in your further investment.
- If you have any further queries, please comment below. We will be happy to answer all your questions.
- If you like this information, share the article with as many people as possible
Tech to Force I just like the helpful information you provide in your articles
Mangaclash This is really interesting, You’re a very skilled blogger. I’ve joined your feed and look forward to seeking more of your magnificent post. Also, I’ve shared your site in my social networks!
Thanks you !
I have been absent for a while, but now I remember why I used to love this blog. Thank you, I¦ll try and check back more frequently. How frequently you update your site?
Magnificent web site. A lot of useful information here. I am sending it to a few friends ans also sharing in delicious. And certainly, thanks for your sweat!
Woah! I’m really loving the template/theme of this website. It’s simple, yet effective. A lot of times it’s very difficult to get that “perfect balance” between superb usability and visual appeal. I must say you have done a awesome job with this. Also, the blog loads super fast for me on Firefox. Exceptional Blog!
Thank you for the auspicious writeup. It in fact was a amusement account it. Look advanced to more added agreeable from you! By the way, how can we communicate?