Blue StarBOM:500067 -0.90%90 Gross Margin % is 21.48% as of Mar. 2026, which is 6% below its 10-year median of 22.85. GuruFocus rates BOM:500067 with a GF Score™ of 90/100 and a GF Value™ of ₹1,923.68 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,718 Construction companies, Blue Star ranks better than 54.66% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Blue Star's Gross Profit for the
three
months ended in Mar. 2026 was ₹8,746 Mil. Blue Star's Revenue for the
three
months ended in Mar. 2026 was ₹40,721 Mil. Therefore, Blue Star's Gross Margin % for the quarter that ended in Mar. 2026 was 21.48%.
The historical rank and industry rank for Blue Star's Gross Margin % or its related term are showing as below:
BOM:500067'
s Gross Margin % Range Over the Past 10 Years
Min: 20.87 Med: 22.85 Max: 24.45
Current: 23.06
During the past 13 years, the highestGross Margin % of Blue Star was 24.45%. The lowest was 20.87%. And the median was 22.85%.
BOM:500067's Gross Margin % is ranked better than 54.66% of 1718
companies
in the Construction industry
Industry Median: 20.785
vs BOM:500067: 23.06
Blue Star had a gross margin of 21.48% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Blue Star was 1.80% per year.
Blue Star (BOM:500067) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Blue Star had a gross margin of 21.48% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Blue Star Gross Margin % Related Terms
Blue Star Gross Margin % Historical Data
* Premium members only.
The historical data trend for Blue Star's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BOM:500067 vs TT, JCI, CARR: Gross Margin % Comparison
For the Building Products & Equipment subindustry, Blue Star's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Blue Star Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Blue Star's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Blue Star's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Blue Star (BOM:500067) has a Gross Margin % of 21.48% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Blue Star and its competitors. This is near median its historical median of 22.85. Over the past decade, Blue Star's Gross Margin % has ranged from 20.87 to 24.45. According to the industry distribution chart, Blue Star ranks #779 out of 1718 companies in the Construction industry, placing it in the top 45.3%.
Is Blue Star's Gross Margin % too high?
Blue Star's current Gross Margin % of 21.48% is near median its 10-year median of 22.85. Over the past 10 years, this metric has ranged from a low of 20.87 to a high of 24.45. The Construction industry median Gross Margin % is 20.79. Blue Star's value of 21.48% is 3.3% above this industry median. Based on the distribution chart, Blue Star ranks #779 out of 1718 companies in the Construction industry, which is above the industry midpoint. Overall, Blue Star has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Blue Star's Gross Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Blue Star ranks #779 out of 1718 companies for Gross Margin %. This puts Blue Star in the upper half of its industry. The industry median Gross Margin % is 20.79. Blue Star's value of 21.48% is 3.3% above this benchmark. Historically, Blue Star's own Gross Margin % has ranged from 20.87 to 24.45 over the past decade. While the company's 10-year median is 22.85 vs. the industry median of 20.79, Blue Star has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Construction company?
The median Gross Margin % among Construction companies is 20.79, based on 1,718 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Blue Star's current Gross Margin % of 21.48% is 3.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Blue Star and its competitors. For the Construction industry, the median Gross Margin % is 20.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Blue Star's current Gross Margin % is 21.48%, which is near median its own 10-year median of 22.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Blue Star stock overvalued right now?
Based on GuruFocus' analysis, Blue Star (BOM:500067) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,923.68, compared to a current price of ₹1,583.60 — trading 17.7% below its estimated fair value. The current Gross Margin % is 21.48%, which is near median its 10-year median of 22.85 and 3.3% above the Construction industry median of 20.79. Blue Star's overall GF Score™ is 90/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Blue Star (BOM:500067), the current Gross Margin % is 21.48% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Blue Star (BOM:500067) Overvalued in 2026?
Based on GuruFocus' analysis, Blue Star stock appears to be undervalued.
The current stock price of ₹1,583.60 is trading 17.7% below its estimated GF Value™ of ₹1,923.68.
GuruFocus considers Blue Star to be Modestly Undervalued.
Key valuation signals for BOM:500067:
Gross Margin %: 21.48% (near median its 10-year median of 22.85)
GF Value™: ₹1,923.68 vs. price of ₹1,583.60 (17.7% below fair value)
Industry Position: 3.3% above the Construction median (#779 of 1718)
No single metric tells the full story. See the BOM:500067 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Blue Star Ltd is an India-based air conditioning and commercial refrigeration company. It serves corporate, commercial, and residential entities. The company's operating segment includes Electro-Mechanical Projects and Commercial Air Conditioning Systems; Unitary Products and Professional Electronics and Industrial Systems. It generates maximum revenue from the Electro-Mechanical Projects and Commercial Air-conditioning Systems segment which includes central air-conditioning projects, Electrical Contracting business, and Packaged air-conditioning businesses including manufacturing and after-sales service. Geographically, the company generates a majority of its revenue from its operations in India.
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