Blue Star Limited Share Price Target 2026–2030
Blue Star Limited is India’s leading air conditioning and commercial refrigeration company, with a strong presence in both consumer and industrial segments. Known for its engineering excellence, robust after-sales service network, and leadership in MEP (Mechanical, Electrical, and Plumbing) projects, Blue Star has delivered consistent double-digit growth in sales and profits over the past five years. Backed by healthy institutional ownership and a diversified product portfolio—including air conditioners, air coolers, water purifiers, and cold chain solutions—the company is well-positioned to benefit from rising demand in residential, commercial, and infrastructure sectors. This article provides a fact-based outlook on its share price target for each year from 2026 through 2030.
Blue Star Limited: Company Overview
- Incorporated: 1943; listed on Indian stock exchanges since 1980
- Core Business Segments:
- Unitary Products (65% of revenue): Room ACs, split ACs, air coolers, water purifiers, and commercial refrigeration
- Electro-Mechanical Projects (35%): Turnkey MEP, HVAC, fire-fighting, and plumbing projects for airports, hospitals, data centers, and metros
- Key Strengths:
- Largest after-sales service network in India (8,800+ outlets across 650+ cities)
- Market leader in ducted ACs and scroll chillers; #2 in VRF systems
- Strong execution track record in large infrastructure projects (e.g., metro rails, airports)
- Ownership: Promoter holding at 36.49%, with significant institutional backing (DII: 26.81%, FII: 14.61%)
Blue Star Limited: Key Financial Snapshot
| Metric | Value |
|---|---|
| Market Capitalization | ₹39,913.94 Cr |
| Current Share Price | ₹1,941 (as of Feb 2026) |
| P/E (TTM) | 105.19 |
| P/B (TTM) | 13.79 |
| Book Value (TTM) | ₹140.79 |
| EPS (TTM) | ₹18.45 |
| ROE | 18.09% |
| ROCE | 23.67% |
| Dividend Yield | 0.47% |
| Sales Growth (TTM) | 25.86% |
| Profit Growth (TTM) | 31.95% |
| Cash Reserves | ₹306.10 Cr |
| Debt | ₹318.90 Cr |
| Face Value | ₹2 |
Note: While growth metrics are strong, the P/E of 105x and P/B of 13.8x indicate a rich valuation that leaves little margin for error.
Blue Star Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹2,100 – ₹2,400 |
| 2027 | ₹2,300 – ₹2,700 |
| 2028 | ₹2,500 – ₹3,000 |
| 2029 | ₹2,700 – ₹3,400 |
| 2030 | ₹2,900 – ₹3,800 |
Targets assume sustained project execution, margin stability, and continued leadership in cooling solutions amid rising temperatures and urbanization.
Blue Star Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹2,100 | ₹2,400 |
- High P/E (105x) demands flawless execution
- Strong FY2025 order book in MEP projects supports revenue visibility
- Risk: Valuation is vulnerable to any profit miss or input cost inflation
Blue Star Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹2,300 | ₹2,700 |
- Expected benefit from government infrastructure push (airports, data centers, hospitals)
- Rising demand for energy-efficient ACs and cold chain logistics
- Dividend consistency (0.47% yield, ~31% payout) adds minor support
Blue Star Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹2,500 | ₹3,000 |
- By 2028, the cumulative effect of project wins and brand premium should reflect in margins
- Valuation may stabilize if ROCE sustains above 23%
- Execution risk: Competition from LG, Daikin, and Voltas in the premium AC segment
Blue Star Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹2,700 | ₹3,400 |
- Long-term tailwinds from climate change, urbanization, and the data center boom
- Debt-to-equity remains manageable (net debt near zero)
- Institutional ownership (~41%) provides liquidity and stability
Blue Star Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹2,900 | ₹3,800 |
- If Blue Star maintains 25%+ sales growth and 23%+ ROCE, ₹3,500+ is achievable
- However, targets beyond ₹4,000 require a breakthrough in export markets—not currently visible
- Brand strength and service network remain key differentiators
Blue Star Limited: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Promoters | 36.49% |
| Domestic Institutions (DII) | 26.81% |
| Public (Retail) | 22.10% |
| Foreign Institutions (FII) | 14.61% |
| Others | 0% |
Promoter holding is stable with no pledging reported.
Blue Star Limited: Strengths vs Risks
Strengths
- Consistent 25%+ sales and 31%+ profit growth over 5 years
- High ROCE (23.7%) in a competitive industry
- Strong project execution in complex MEP segments
- Market leadership in commercial cooling solutions
Risks
- Extremely high P/E (105x)—among the highest in Indian equities
- High P/B (13.8x) suggests most growth is already priced in
- Low dividend yield (0.47%) offers no income cushion
- Debt slightly exceeds cash (₹319 Cr vs ₹306 Cr), though manageable
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | High |
| Time Horizon | Long-term (5+ years) |
| Volatility | Moderate to High |
| Dividend/Income | Very low (0.47% yield) |
| Ideal Investor | Growth-focused investor comfortable with premium valuations and cyclical infrastructure exposure |
FAQs
A: A realistic range is ₹2,100 to ₹2,400, assuming continued strong execution and no major margin erosion.
A: Credible estimates suggest ₹2,900 to ₹3,800 by 2030, if growth and ROCE remain robust.
A: Reliable forecasts beyond 2030 are not possible. Such long-term projections are speculative and not based on verifiable data.
A: The company is promoter-controlled with 36.49% stake held by the Tara Chand family. The rest is widely held by institutions and public shareholders.
A: Yes. It has a consistent dividend history with a current yield of 0.47% and a payout ratio of ~31%.
A: The stock corrected due to valuation concerns (P/E > 100), profit-taking after strong rallies, and broader consumer durables sector rotation in late 2025.
A: No. It carries ₹318.90 crore in debt, slightly higher than its cash reserves of ₹306.10 crore—but net debt is near zero.
Final Verdict
Blue Star Limited is a high-quality player in India’s cooling and MEP space with unmatched service reach and engineering capabilities. However, its extreme valuation (P/E > 105x) makes it vulnerable to any earnings disappointment. Our 2026–2030 price targets (₹2,100–₹3,800) reflect strong growth potential but capped upside due to current pricing. Best suited for long-term investors who believe in India’s climate-driven cooling demand and can tolerate short-term volatility.
Disclaimer: This article is for educational purposes only. It is not investment advice. Please consult a SEBI-registered advisor before making any investment decision.
Sources
- Screener.in – Blue Star Ltd (Consolidated Financials)
- Finology.in – Company Essentials
- BSE India – Shareholding Pattern (Q3 FY2026)
- Blue Star Annual Report FY2025
- Investor Presentation – Q2 FY2026 Results
Hi, I’m Raj Mittal, a stock market content writer focused on company analysis, share price trends, and fundamental research. I create simple, research-based insights to help investors make smarter market decisions.
