New Delhi, June 9 -- Blue Star Ltd's shares are down as much as 35% from their 52-week high of Rs.2,417 in January as a weak summer season is expected to hurt room air-conditioner (RAC) demand, and in turn, sales.

Despite the significant underperformance vis-a-vis the Nifty 500 index so far in 2025, the stock's sharp rally of about 125% in 2024 means valuations don't bring a lot of comfort. Blue Star's shares still trade at almost 47 times FY26 estimated earnings, as per Bloomberg data, which is not particularly cheap.

The company ended FY25 with a 32% consolidated Ebitda growth to Rs.876 crore, and a 45-basis points (bps) expansion in margin to 7.3%. However, FY26 has begun on a softer note, thanks to a milder summer season and the ear...