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Annual Report Review: Blue Star

In continuation of this series on reviewing annual reports, here is my review of the FY15 report of India’s leading air-conditioning and commercial refrigeration company, Blue Star.

Click here to download the PDF review (10 MB file), or read it in the panel below.

Please note that this review is just to help you dig deeper, in case you are interested to read and understand more of the reviewed company. Don’t treat this as an end to your quest for learning more about businesses and industries, and how to analyze them.

In fact, this is just the beginning. 🙂

Let me know your thoughts and questions on this review in the Comments section of this post…and also share any suggestion(s) you may have to make future reviews better and easier for your understanding.

Statutory Warning: This is NOT an investment advice to buy or sell shares. Please make your own decision, as blindly acting on anyone else’s research and opinions can be injurious to your wealth. I do not own the stock, but despite this, my analysis may be biased, and wrong. I have been wrong many times in the past. I am a registered Research Analyst as per SEBI (Research Analyst) Regulations, 2014 (Registration No. INH000000578).

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About the Author

Vishal Khandelwal is the founder of Safal Niveshak. He works with small investors to help them become smart and independent in their stock market investing decisions. He is a SEBI registered Research Analyst. Connect with Vishal on Twitter.


  1. Anand Kumar says:

    Vishal, another excellent review. Comparison with Voltas was awesome. Each time you have reviewed an annual report, you have added new perspectives. Keep them coming. 🙂 Cheers!

  2. Thx alot,, you make it interesting to read many thanks.

  3. You are a great teacher, Vishal Sir. If only i could have that much patience to read intentionally and not scrolling the pages. Through your insights and teaching, someday I might get that enlightenment to work hard and do in depth analysis of things/investing. Big thank, anyways 🙂

  4. This is great! I have not seen analysis of annual report before. I have had difficult time to understand what they are “really” saying in the annual reports. Your examples of what to look for when reading annual reports is great IMO. Thanks!

    • Thanks Jan!

      • Vishal,

        I have a problem sorting out what information I should focus on in my process of becoming a better person and a better investor. The internet is flowing over with information and its easy to get overhelmed and distracted. Do you have a post on how one can improve the skill on spending time on whats most important to learn, and also basically how to learn? I feel like I am developing ADHD 😉

  5. Sameer sawant says:

    Dear Vishal,
    I have undertaken your courses and great fan of your writing, analysis (in fact everything you do)
    You have added one more feather in your cap by bringing in Anshul, now a new friend to follow.
    I feel you have a telepathy or good sense of intuition that this is exactly I was looking for, how do you actually go about reading it and making notes,whats relevant and what to overlook.
    Thanks please keep sending these gems of wisdom and knowledge, always look forward to receive it, read it…

    With lots of appreciation, admiration and respect.


    Sameer Sawant

  6. Sameer sawant says:

    Dear Vishal,
    Please keep doing it, I always wait for this day in this week for your exceptional analysis.
    Inspite of knowing basics, its important to how to go about doing are showing us the way, in actually doing it. I have started doing it now. I do not have words to express my gratitude.

  7. Good work Vishal. The analysis and your comments certainly help (especially) those who are new to report-reading.
    Thanks for investing your time on this.

    One observation – on page 12 its mentioned that Exceptional income went up +149%. However it actually went up from -1686 to + 4190 which is approx +348%. Or am I missing something?

    Nevertheless that doesn’t undermine your good work. Keep going. Thanks.

  8. sir
    can you do a similar review on the apollo tyres annual report. i didi read but it was very confusing

  9. Great work, Vishal.
    Thank you very much and congrat from Bulgari! 🙂

    As you cannot make a recommendation – between Blue Star and Voltas which u prefer?

  10. Dear Vishal,

    You are doing an exemplary job in helping the investment community with your guidance. We are highly grateful to you.

    In your latest review on Bluestar AR, could you please help me on Pg17 ‘Higher provisions on account of significant cost overrun in old projects. Do not impact cash flow’ and Pg 18 ‘Cost update on major contracts’,

    Kindly elaborate this.

    Thanks as always for your support.

    Thanks and Regards

    • Thanks for your kind words, Supratik!

      On the point about provisions, these are non-cash charges i.e., there is no cash outflow on account of this, and thus while these are deducted from the Income Statement, they are added back in the Cash Flow to show the true picture of cash.

      Hope this helps. Regards.


  1. […] me know your thoughts and questions on this review in the Comments section of this post…and also share any suggestion(s) you may have to make future reviews better and easier for […]

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