Shares of Blue Star Limited fell by over 3% to ₹2,145.05 on January 7, following a downgrade from Jefferies. The global brokerage revised its rating on the stock from ‘Buy’ to ‘Hold’ and set a target price of ₹2,340, citing limited upside after a sharp rally in 2024.
Key Highlights:
- Stock Performance: Blue Star witnessed a significant rally of over 140% in CY2024, driven by strong demand and operational growth.
- Valuation Concerns: The stock is currently trading at 60x its FY26 estimated earnings, significantly higher than its historical five-year average PE of ~41x.
- Market Outlook: Jefferies foresees muted urban demand due to inflationary pressures, advising selectivity in discretionary consumption plays.
Blue Star Share Price history
| Day | Open | Close | Change % |
|---|---|---|---|
|
Mon, Jan 6 2025
|
₹2,377.45
|
₹2,224.40
|
-4.84%
|
|
Fri, Jan 3 2025
|
₹2,292.70
|
₹2,337.55
|
|
|
Thu, Jan 2 2025
|
₹2,260.00
|
₹2,292.70
|
|
|
Wed, Jan 1 2025
|
₹2,129.85
|
₹2,259.80
|
|
|
Tue, Dec 31 2024
|
₹2,134.00
|
₹2,139.15
|
|
|
Mon, Dec 30 2024
|
₹2,084.55
|
₹2,130.35
|
|
|
Fri, Dec 27 2024
|
₹2,055.10
|
₹2,072.95
|
|
|
Thu, Dec 26 2024
|
₹1,996.90
|
₹2,039.20
|
|
The downgrade reflects Jefferies’ cautious stance on further upside potential after the sharp gains, aligning with expectations of slower urban offtake in the near term.
TOPICS:
Blue Star