Blue Star shares up 196% in 3 years, beating Havells, Voltas; worth a look?
MOFSL said Blue Star is steadily gaining market share in the Indian RAC segment. Its share improved to 14 per cent in FY25 from 7 per cent in FY14. The company is now targeting 15 per cent share by FY27E.
- Nov 25, 2025,
- Updated Nov 25, 2025 8:18 AM IST
Multibagger stock Blue Star is among the top performers in the consumer durables space, outperforming Havells India, Voltas and the benchmark BSE Consumer Durables index by a wide margin over the last three years. The stock looks fairly valued at current levels, MOFSL said whose target price on the counter at Rs 1,950 suggests 10 per cent potential upside ahead. The brokerage initiated coverage on Blue Star with a 'Neutral' rating.
MOFSL said Blue Star is steadily gaining market share in the Indian RAC segment. Its share improved to 14 per cent in FY25 from 7 per cent in FY14. The company is now targeting 15 per cent share by FY27E.
"Blue Star retains a strong leadership position in the commercial refrigeration business, holding over 31 per cent share in deep freezers and modular cold rooms. We estimate that its unitary cooling product (UCP) revenue would decline 3 per cent YoY in FY26, primarily due to a weak summer season. However, we project revenue growth of 19/18 per cent YoY in FY27/FY28, fueled by a recovery in demand," MOFSL said.
The brokerage believes the the EBIT margin will be in high-single digits and gradually improve as Blue Star achieves a higher scale of operations and increases indigenisation.
Blue Star shares are up 196 per cent in the past three years. This is against Voltas' 65.43 per cent rally, the BSE CD index's 50.37 per cent gain and Havells India's 14.42 per cent rise during the same period.
MOFSL said Blue Star trades at 48 times FY27 EPS against average of 46 times in the last 10 years. It said the stock is fairly valued at current levels given the strong rerating in its valuation multiples in the last few years.
"We initiate coverage on the stock with a Neutral rating and an SoTP-based target price of Rs 1,950," it said.
MOFSL said Blue Star is a leading integrated MEP (Mechanical, Electrical and Plumbing) service provider with eight decades of experience in providing solutions to the infrastructure, building, and industrial domains. It has shifted its focus to data centers, factories, and select infrastructure projects, having better profitability and cash flow generation, MOFSL said.
"The professional electronics and industrial systems (PEIS) segment contributed ~4%/8% of revenue/EBIT over FY21-25, though its margin contracted to ~9% in FY25 from ~15% in FY21. The MedTech and data security businesses faced regulatory and demand challenges, while its industrial solution business is gaining traction," it noted.
Multibagger stock Blue Star is among the top performers in the consumer durables space, outperforming Havells India, Voltas and the benchmark BSE Consumer Durables index by a wide margin over the last three years. The stock looks fairly valued at current levels, MOFSL said whose target price on the counter at Rs 1,950 suggests 10 per cent potential upside ahead. The brokerage initiated coverage on Blue Star with a 'Neutral' rating.
MOFSL said Blue Star is steadily gaining market share in the Indian RAC segment. Its share improved to 14 per cent in FY25 from 7 per cent in FY14. The company is now targeting 15 per cent share by FY27E.
"Blue Star retains a strong leadership position in the commercial refrigeration business, holding over 31 per cent share in deep freezers and modular cold rooms. We estimate that its unitary cooling product (UCP) revenue would decline 3 per cent YoY in FY26, primarily due to a weak summer season. However, we project revenue growth of 19/18 per cent YoY in FY27/FY28, fueled by a recovery in demand," MOFSL said.
The brokerage believes the the EBIT margin will be in high-single digits and gradually improve as Blue Star achieves a higher scale of operations and increases indigenisation.
Blue Star shares are up 196 per cent in the past three years. This is against Voltas' 65.43 per cent rally, the BSE CD index's 50.37 per cent gain and Havells India's 14.42 per cent rise during the same period.
MOFSL said Blue Star trades at 48 times FY27 EPS against average of 46 times in the last 10 years. It said the stock is fairly valued at current levels given the strong rerating in its valuation multiples in the last few years.
"We initiate coverage on the stock with a Neutral rating and an SoTP-based target price of Rs 1,950," it said.
MOFSL said Blue Star is a leading integrated MEP (Mechanical, Electrical and Plumbing) service provider with eight decades of experience in providing solutions to the infrastructure, building, and industrial domains. It has shifted its focus to data centers, factories, and select infrastructure projects, having better profitability and cash flow generation, MOFSL said.
"The professional electronics and industrial systems (PEIS) segment contributed ~4%/8% of revenue/EBIT over FY21-25, though its margin contracted to ~9% in FY25 from ~15% in FY21. The MedTech and data security businesses faced regulatory and demand challenges, while its industrial solution business is gaining traction," it noted.