consumer

Blue Star

BLUESTARCO · Nifty 50

1,695.6

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionconsumer sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score70/100 (STRONG). 0 positive flags, 5 concerns.
Historical Context51 similar technical setups. Average outcome: -10.3% decline. 0% positive.

Fundamental

70/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

Blue Star scores 70/100 on fundamentals (strong). Blue Star: BROAD EXPANSION regime.

Fundamental Score: 70/100 · STRONG · 2 signals detected

DuPont Analysis

ROE 18.1% broken into three drivers. Each shows how efficiently the company generates returns.

ROE18.1%=
4.5%Net Margin
×
1.6xTurnover
×
2.5xLeverage

ROE of 18.15% is moderate efficiency-driven and stable. Net margin of 4.5% × asset turnover of 1.63x × leverage of 2.5x.

What This Means

Net margin of 4.5% means the company keeps ₹4.5 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 1.63x means the company efficiently uses its assets to generate revenue. Leverage of 2.5x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

22.6%

Operating

6.4%

Net

4.5%

improving

Gross margin 22.6% → operating margin 6.4% → net margin 4.5%. Margins are IMPROVING.

Financial Health

Earnings Quality

WEAK

Cash flow only covers 0.2x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.

Debt Sustainability

COMFORTABLE

Interest covered 12.1x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.8x is low — balance sheet has capacity.

Free Cash Flow

MODERATE

FCF margin negative at -1.2% — spending more than earning. Check capex cycle.

Peer Comparison

Blue Star is compared against 10 peers in the consumer sector.

Key Watchpoints

🟢

Breaks above ₹1780 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹1611 (-5%)

Further downside risk

🟢

Consumer sector entering leadership

Sector rotation signal

Detected Patterns

➡️ Leverage Slowly Rising: Debt growing faster (112.6%) than equity (12.0%)
⚠️ Low Earnings Quality: Cash flow only 0.2x earnings — weak cash conversion

Risk Flags

🔴 2 Critical⚠️ 3 Warning5 total flags
🔴Cash covers only 8% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

🔴Operating cash flow significantly below net income
Cash Flow

OCF is only 0.2x net income. Profit not converting to cash — aggressive accounting possible.

⚠️Non-core revenue is 11% of total
Earnings Quality

Significant income from non-operating sources. Core business may be smaller than it appears.

⚠️77% of debt is short-term
Balance Sheet

High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.

⚠️Working capital changes are 362% of operating cash flow
Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

🔴 2 CRITICAL flags — significant concerns. Investigate before investing.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio
61.7UNAVAILABLE
P/B Ratio
9.5HIGH
Market Cap
₹3256176.5L CrHIGH
From 52W High
83% of high
Sector Peers
10
Blue Star Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight