Blue Star Ltd (NSE: BLUESTARCO) Technical View On Daily

Blue Star appears to be in the process of forming a base after a sharp correction from the ₹2,300+ levels to recent lows near ₹1,520. The current price action suggests a potential reversal zone, where the stock may bounce after finding demand.

• Green Zone (₹1,642–₹1,633): This is a key support area, which has held multiple times in the past and is currently showing early signs of demand stepping in.
• The chart outlines a potential recovery path, where the price may:

1. Bounce toward ₹1,800
2. Face resistance and possibly consolidate or pull back
3. Attempt a re-test or higher low and continue upward

The drawn projections seem to represent a bullish reversal pattern forming from a demand zone indicating an accumulation phase may be underway.

Fundamentals
Blue Star is one of India’s leading air conditioning founded in 1943, and commercial refrigeration companies. The company also provides electro-mechanical projects and professional electronics solutions.

Core Business Segments

1. Cooling Products (Consumer AC's, Refrigerators): Significant contributor to revenue, especially during summer quarters.
2. Projects Business (MEP - Mechanical, Electrical & Plumbing): Large contracts in real estate, IT parks, hospitals, and infrastructure.
3. Professional Electronics and Industrial Systems (PEIS): Niche but growing, including data security, analytics, and testing solutions.

Recent Financial & Business Highlights
• FY24 Revenue: ₹9,025 crore
Net Profit: ₹440 crore (YoY growth of ~36%)
• EBITDA Margin: ~7.8% (improving due to better cost controls and operating leverage)
(Source: moneycontrol.com)
• Q4 is typically the strongest quarter due to seasonal demand, especially in room AC sales.
• Capacity expansion: A new plant in Sri City (Andhra Pradesh) to support long-term demand.
• Government push: Increased spending on infrastructure, smart cities, and public buildings is a tailwind for Blue Star’s Projects division.

Conclusion:
From a technical standpoint, if the stock sustains above ₹1,566 and gains momentum, it could revisit the ₹1,800 zone in the medium term. Keeping an eye on price behavior in this range can provide early confirmation of a breakout. chart is hinting at a potential bottom formation, as fundamentals remain strong with strong Q4 results, seasonality support, and infrastructure-led demand, the current consolidation phase may offer a favorable risk-reward opportunity.

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Disclaimer: This post is for educational purposes only and should not be considered a buy/sell recommendation.