Go Unlimited with Magzter GOLD
Get unlimited access to 10,000+ magazines, newspapers and Premium stories for just
Try GOLD - Free
Blue Star faces the heat in Q1
Mint New Delhi
|June 10, 2025
Cool quotient Blue Star has seen good market share growth over the past eight years despite strong competition.
Blue Star Ltd's shares are down as much as 35% from their 52-week high of ₹2,417 in January as a weak summer season is expected to hurt room air-conditioner (RAC) demand and sales.
Despite significantly underperforming the Nifty 500 index so far in 2025, the stock's rally of about 125% in 2024 means valuations don't bring a lot of comfort. Blue Star's shares still trade at almost 47 times FY26 estimated earnings, as per Bloomberg data, which is not particularly cheap.
The company ended FY25 with a 32% consolidated Ebitda growth to ₹876 crore, and a 45-basis points (bps) expansion in margin to 7.3%.
However, FY26 has begun on a softer note, thanks to a milder summer season and the early arrival of the monsoon. This means the seasonally strong June quarter (Q1 of FY26) now appears less exciting than expected.
This story is from the June 10, 2025 edition of Mint New Delhi.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 10,000+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM Mint New Delhi
Mint New Delhi
US energy giants eye India LNG network
US energy giants Exxon-Mobil Corp. and Chevron Corp. are eying entry into India's LNG infrastructure business, including terminals and pipelines, said two people in the know, even as the two nations look to thrash out differences over New Delhi's Russian oil imports.
3 mins
October 01, 2025
Mint New Delhi
Will Tata Steel's Dutch pact help cut its emissions?
Tata Steel signed a pact with the Netherlands government on Monday to receive up to €2 billion aid to cut emissions at its Dutch facility.
2 mins
October 01, 2025
Mint New Delhi
Oil giant IOC eyes green shift
Indian Oil Corp. Ltd (IOC) is navigating choppy waters as nearterm business conditions remain uncertain amid oil price volatility, tariffs, exchange rate weakness, and geopolitical disturbances.
2 mins
October 01, 2025
Mint New Delhi
April-August fiscal gap rises to ₹5.98 tn
India's fiscal deficit rose in the first five months of 2025-26, as compared with the same period last year, due to higher government capital expenditure while net tax revenue declined.
2 mins
October 01, 2025
Mint New Delhi
TaMo aims to drive down Iveco costs, open new roads
Analysts questioned the rationale of buying the Italian firm that was facing growth hurdles
2 mins
October 01, 2025
Mint New Delhi
Nestlé India inks MoU with govt to push food sector investment
FMCG major Nestlé India on Tuesday said it has signed a memorandum of understanding (MoU) with the government to expedite investments in the food industry.
1 min
October 01, 2025
Mint New Delhi
Reits revolution: own a slice of malls, offices with just ₹500
Think mutual funds, but for real estate. That's how Pratik Dantara, executive committee member of the Indian Reits Association, explains Real Estate Investment Trusts (Reits)-a growing investment avenue giving retail investors exposure to office parks, malls, and other commercial properties.
2 mins
October 01, 2025
Mint New Delhi
How Indians get a passport to global markets via GIFT
Global access GIFT City outbound funds offer international exposure
2 mins
October 01, 2025
Mint New Delhi
Poonawalla eyes RCB at $1-1.2 bn valuation
Adar Poonawalla, owner of the vaccine maker Serum Institute, is evaluating a deal to buy the Indian Premier League team Royal Challengers Bengaluru at a valuation of up to $1-1.2 billion, a person directly aware of the development said.
1 mins
October 01, 2025
Mint New Delhi
Demand for offices stays strong: C&W
Net leasing of office spaces increased 35% across eight major cities during the JulySeptember period to 16.25 million sq. ft on better demand from domestic and overseas companies, according to Cushman & Wakefield (C&W).
1 min
October 01, 2025
Listen
Translate
Change font size