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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Blue Star Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 20, 2024, 11:12 pm

Market Cap 37,289 Cr.
Current Price 1,814
High / Low2,200/901
Stock P/E71.0
Book Value 133
Dividend Yield0.39 %
ROCE25.5 %
ROE21.2 %
Face Value 2.00
PEG Ratio2.87

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Blue Star Ltd

Competitors of Blue Star Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Johnson Controls-Hitachi Air Condition. India Ltd (JCHAC) 5,108 Cr. 1,8782,621/950122 2170.00 %7.35 %7.81 % 10.0
Blue Star Ltd 37,289 Cr. 1,8142,200/90171.0 1330.39 %25.5 %21.2 % 2.00
Industry Average21,198.50 Cr1,846.0096.50175.000.20%16.43%14.51%6.00

All Competitor Stocks of Blue Star Ltd

Quarterly Result

Month

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,8202,9242,9343,1823,7984,3854,6395,2355,3604,2646,0647,9778,534
Expenses2,8422,8342,7843,0143,6314,1624,3724,8875,0774,0245,7177,4787,983
Operating Profit-2290150168167223266348283240347500551
OPM %-1%3%5%5%4%5%6%7%5%6%6%6%6%
Other Income223618-3466342226406536195206
Interest72535449433829482965465568
Depreciation32333843576164758892868584
Profit before tax-103417643132159196251206148251555606
Tax %-1%6%3%-18%21%23%25%17%32%32%33%28%
Net Profit-105397854106123144190144101168401438
EPS in Rs-5.842.174.313.015.826.447.509.877.445.218.7120.7922.50
Dividend Payout %-9%73%46%83%56%58%67%51%67%38%57%29%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)137.14%100.00%-30.77%96.30%16.04%17.07%31.94%-24.21%-29.86%66.34%138.69%
Change in YoY Net Profit Growth (%)0.00%-37.14%-130.77%127.07%-80.26%1.04%14.87%-56.15%-5.65%96.20%72.35%

Blue Star Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:13%
5 Years:13%
3 Years:31%
TTM:26%
Compounded Profit Growth
10 Years:18%
5 Years:17%
3 Years:78%
TTM:66%
Stock Price CAGR
10 Years:27%
5 Years:35%
3 Years:52%
1 Year:88%
Return on Equity
10 Years:19%
5 Years:19%
3 Years:21%
Last Year:21%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:34 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital18181818191919191919194141
Reserves3834434386127387748547638669981,3112,5692,692
Borrowings422512398365221376348520510554662243349
Other Liabilities1,3371,3631,3221,5301,6722,0682,1302,1372,1542,7413,4553,7583,389
Total Liabilities2,1602,3362,1752,5252,6503,2363,3513,4393,5494,3135,4476,6116,471
Fixed Assets2272552572593563924004443844338591,1651,349
CWIP815221634254167721528312747
Investments27333624211131517295162148267242
Other Assets1,8972,0321,8602,0072,2502,8062,8952,9112,7993,5654,3575,0534,832
Total Assets2,1602,3362,1752,5252,6503,2363,3513,4393,5494,3135,4476,6116,471

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +26672152571591925845035087243289
Cash from Investing Activity +-2011-49-4869-88-65-81-238-67-178-524
Cash from Financing Activity +-44-26-190-195-20351-181-167-70-82-76365
Net Cash Flow-3752-241325-181320242-62-11130

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-22.00-332.00-362.00-230.00-198.002.00-110.000.00-237.00-270.00-207.00-162.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days939682767875785769727174
Inventory Days1401257910497152119116143125127106
Days Payable220222146211191228211211260223223198
Cash Conversion Cycle13-215-31-16-2-14-38-48-26-25-18
Working Capital Days435331162235311610222227
ROCE %11%14%15%20%20%20%25%19%13%20%25%26%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters38.76%38.78%38.78%38.79%38.79%38.79%38.91%36.49%36.50%36.50%36.53%36.46%
FIIs11.09%11.83%12.25%11.79%10.96%10.45%11.06%14.89%15.38%15.93%17.04%18.06%
DIIs22.83%22.44%22.06%23.07%24.64%25.13%24.51%25.24%24.82%24.69%23.56%22.84%
Public27.32%26.96%26.92%26.36%25.63%25.65%25.54%23.39%23.29%22.89%22.85%22.63%
No. of Shareholders53,48856,50458,30648,63448,10956,94058,54659,44465,46572,94983,16794,641

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Small Cap Fund9,400,0003.86822.691,160,9022024-11-20709.72%
Kotak Emerging Equity Fund - Regular Plan5,308,4201.37464.591,160,9022024-11-20357.27%
Axis Small Cap Fund5,097,6142.76446.141,160,9022024-11-20339.11%
SBI Multicap Fund4,550,2693398.241,160,9022024-11-20291.96%
Kotak Small Cap Fund - Regular Plan4,061,6502.86355.481,160,9022024-11-20249.87%
Nippon India Small Cap Fund2,769,3950.65242.381,160,9022024-11-20138.56%
Kotak Equity Opportunities Fund - Regular Plan2,571,5071.45225.061,160,9022024-11-20121.51%
Franklin India Smaller Companies Fund1,605,6321.45140.521,160,9022024-11-2038.31%
SBI Large & Midcap Fund1,579,3760.88138.231,160,9022024-11-2036.05%
Axis Multicap Fund1,160,9022.32101.61,160,9022024-11-200%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)20.7741.6017.4410.4214.87
Diluted EPS (Rs.)20.7741.6017.4410.4214.87
Cash EPS (Rs.)24.8850.3726.2619.7723.74
Book Value[Excl.RevalReserv]/Share (Rs.)127.07138.51105.9792.2081.48
Book Value[Incl.RevalReserv]/Share (Rs.)127.07138.51105.9792.2081.48
Revenue From Operations / Share (Rs.)471.08828.38627.79442.74556.61
PBDIT / Share (Rs.)34.6554.3839.6931.3834.01
PBIT / Share (Rs.)29.9045.5730.7621.7924.87
PBT / Share (Rs.)27.0857.6325.9415.0721.39
Net Profit / Share (Rs.)20.1341.5717.3310.1814.61
NP After MI And SOA / Share (Rs.)20.1841.5817.4210.4214.88
PBDIT Margin (%)7.356.566.327.086.10
PBIT Margin (%)6.345.504.894.924.46
PBT Margin (%)5.746.954.133.403.84
Net Profit Margin (%)4.275.012.762.292.62
NP After MI And SOA Margin (%)4.285.012.772.352.67
Return on Networth / Equity (%)15.8930.0916.4811.3318.30
Return on Capital Employeed (%)22.4427.1622.0416.2926.80
Return On Assets (%)6.267.413.882.824.16
Long Term Debt / Equity (X)0.000.120.230.390.06
Total Debt / Equity (X)0.060.430.460.510.57
Asset Turnover Ratio (%)1.611.611.421.111.44
Current Ratio (X)1.301.121.171.261.04
Quick Ratio (X)0.930.740.780.870.69
Inventory Turnover Ratio (X)4.333.893.362.551.85
Dividend Payout Ratio (NP) (%)27.8524.0422.970.00134.46
Dividend Payout Ratio (CP) (%)22.5419.8415.180.0083.29
Earning Retention Ratio (%)72.1575.9677.030.00-34.46
Cash Earning Retention Ratio (%)77.4680.1684.820.0016.71
Interest Coverage Ratio (X)12.279.578.244.6711.11
Interest Coverage Ratio (Post Tax) (X)8.135.204.602.525.91
Enterprise Value (Cr.)25918.4213601.2910333.709149.764593.37
EV / Net Operating Revenue (X)2.681.701.712.150.85
EV / EBITDA (X)36.3825.9727.0430.2814.03
MarketCap / Net Operating Revenue (X)2.701.661.672.120.82
Retention Ratios (%)72.1475.9577.020.00-34.46
Price / BV (X)10.019.979.9510.205.67
Price / Net Operating Revenue (X)2.701.661.672.120.82
EarningsYield0.010.030.010.010.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Blue Star Ltd as of November 21, 2024 is: 2,009.72

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Blue Star Ltd is Undervalued by 10.79% compared to the current share price 1,814.00

Intrinsic Value of Blue Star Ltd as of November 21, 2024 is: 2,507.60

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Blue Star Ltd is Undervalued by 38.24% compared to the current share price 1,814.00

Last 5 Year EPS CAGR: 24.77%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.00%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 27.33, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -16.00, which is a positive sign.
  4. The company has higher reserves (1,033.92 cr) compared to borrowings (421.54 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (4.23 cr) and profit (197.00 cr) over the years.

    Stock Analysis

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Blue Star Ltd:
      1. Net Profit Margin: 4.27%
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: 22.44% (Industry Average ROCE: 16.43%)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. ROE%: 15.89% (Industry Average ROE: 14.51%)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 8.13
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      5. Quick Ratio: 0.93
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      6. Stock P/E: 71 (Industry average Stock P/E: 96.5)
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      7. Total Debt / Equity: 0.06
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    About the Company - Qualitative Analysis

    Blue Star Ltd. is a Public Limited Listed company incorporated on 20/01/1949 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L28920MH1949PLC006870 and registration number is 006870. Currently Company is involved in the business activities of Manufacture of refrigerating or freezing equipment f industrial use, including assemblies of major components. Company’s Total Operating Revenue is Rs. 5376.99 Cr. and Equity Capital is Rs. 19.26 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Air ConditionersKasturi Buildings, Mumbai Maharashtra 400020investorcomplaints@bluestarindia.com
    http://www.bluestarindia.com
    Management
    NamePosition Held
    Mr. Vir S AdvaniChairman & Managing Director
    Mr. B ThiagarajanManaging Director
    Ms. Sunaina MurthyNon Executive Director
    Mr. Dinesh N VaswaniNon Executive Director
    Mr. Rajiv R LullaNon Executive Director
    Mr. Anil HarishIndependent Director
    Mrs. Anita RamachandraIndependent Director
    Mr. Sam BalsaraIndependent Director
    Mr. Arvind K SinghalIndependent Director
    Mr. G MurlidharIndependent Director
    Mr. Vipin SondhiIndependent Director

    FAQ

    What is the latest intrinsic value of Blue Star Ltd?

    The latest intrinsic value of Blue Star Ltd as on 21 November 2024 is ₹2009.72, which is 10.79% higher than the current market price of ₹1,814.00.

    What is the Market Cap of Blue Star Ltd?

    The Market Cap of Blue Star Ltd is 37,289 Cr..

    What is the current Stock Price of Blue Star Ltd as on 21 November 2024?

    The current stock price of Blue Star Ltd as on 21 November 2024 is ₹1,814.

    What is the High / Low of Blue Star Ltd stocks in FY 2024?

    In FY 2024, the High / Low of Blue Star Ltd stocks is 2,200/901.

    What is the Stock P/E of Blue Star Ltd?

    The Stock P/E of Blue Star Ltd is 71.0.

    What is the Book Value of Blue Star Ltd?

    The Book Value of Blue Star Ltd is 133.

    What is the Dividend Yield of Blue Star Ltd?

    The Dividend Yield of Blue Star Ltd is 0.39 %.

    What is the ROCE of Blue Star Ltd?

    The ROCE of Blue Star Ltd is 25.5 %.

    What is the ROE of Blue Star Ltd?

    The ROE of Blue Star Ltd is 21.2 %.

    What is the Face Value of Blue Star Ltd?

    The Face Value of Blue Star Ltd is 2.00.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Blue Star Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE