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Blue StarBOM:500067 -3.10%90 Return-on-Tangible-Equity is 28.34% as of Mar. 2026, which is 41% above its 10-year median of 20.15. GuruFocus rates BOM:500067 with a GF Score™ of 90/100 and a GF Value™ of ₹1,921.77 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,712 Construction companies, Blue Star ranks better than 73.54% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Blue Star's annualized net income for the quarter that ended in Mar. 2026 was ₹9,082 Mil. Blue Star's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹32,045 Mil. Therefore, Blue Star's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 28.34%.
The historical rank and industry rank for Blue Star's Return-on-Tangible-Equity or its related term are showing as below:
BOM:500067'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.95 Med: 20.15 Max: 36.11
Current: 17.55
During the past 13 years, Blue Star's highest Return-on-Tangible-Equity was 36.11%. The lowest was 12.95%. And the median was 20.15%.
BOM:500067's Return-on-Tangible-Equity is ranked better than 73.54% of 1712
companies
in the Construction industry
Industry Median: 8.21
vs BOM:500067: 17.55
Blue Star (BOM:500067) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Blue Star Return-on-Tangible-Equity Related Terms
Blue Star Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Blue Star's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Building Products & Equipment subindustry, Blue Star's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Blue Star's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Blue Star's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 28.34% mean?
Blue Star (BOM:500067) has a Return-on-Tangible-Equity of 28.34% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Blue Star and its competitors. This is 41% above median its historical median of 20.15. Over the past decade, Blue Star's Return-on-Tangible-Equity has ranged from 12.95 to 36.11. According to the industry distribution chart, Blue Star ranks #453 out of 1712 companies in the Construction industry, placing it in the top 26.5%.
Is Blue Star's Return-on-Tangible-Equity too high?
Blue Star's current Return-on-Tangible-Equity of 28.34% is 41% above median its 10-year median of 20.15. Over the past 10 years, this metric has ranged from a low of 12.95 to a high of 36.11. The Construction industry median Return-on-Tangible-Equity is 8.21. Blue Star's value of 28.34% is 245.2% above this industry median. Based on the distribution chart, Blue Star ranks #453 out of 1712 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 Return-on-Tangible-Equity compare to TT and JCI?
According to the Construction industry distribution chart, Blue Star ranks #453 out of 1712 companies for Return-on-Tangible-Equity. This puts Blue Star in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.21. Blue Star's value of 28.34% is 245.2% above this benchmark. Historically, Blue Star's own Return-on-Tangible-Equity has ranged from 12.95 to 36.11 over the past decade. While the company's 10-year median is 20.15 vs. the industry median of 8.21, 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 Return-on-Tangible-Equity for a Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.21, based on 1,712 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Blue Star's current Return-on-Tangible-Equity of 28.34% is 245.2% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Blue Star and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Blue Star's current Return-on-Tangible-Equity is 28.34%, which is 41% above median its own 10-year median of 20.15. 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 ₹1,921.77, compared to a current price of ₹1,687.55 — trading 12.2% below its estimated fair value. The current Return-on-Tangible-Equity is 28.34%, which is 41% above median its 10-year median of 20.15 and 245.2% above the Construction industry median of 8.21. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Blue Star (BOM:500067), the current Return-on-Tangible-Equity is 28.34% 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 ₹1,687.55 is trading 12.2% below its estimated GF Value™ of ₹1,921.77.
GuruFocus considers Blue Star to be Modestly Undervalued.
Key valuation signals for BOM:500067:
Return-on-Tangible-Equity: 28.34% (41% above median its 10-year median of 20.15)
GF Value™: ₹1,921.77 vs. price of ₹1,687.55 (12.2% below fair value)
Industry Position: 245.2% above the Construction median (#453 of 1712)
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.
90GF Score
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