Check Before You Invest : Star Cement Ltd

Snapshot

Q.1 Which industry/sub-sector does Star Cement Ltd belong to?

Star Cement Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.

Q.2 Is Star Cement Ltd a good quality company?

Star Cement Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Star Cement Ltd undervalued or overvalued?

Star Cement Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Star Cement Ltd a good buy now?

Star Cement Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Star Cement Ltd?

Star Cement Ltd revenue growth is 8.7% for FY-2025, which is below its 5-year CAGR of 11.41%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Star Cement Ltd?

Star Cement Ltd Return on capital employed is 8.42% for FY-2025, which is below its 5-year historical median of 12.06%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.3 Return on Asset of Star Cement Ltd?

Star Cement Ltd Return on Asset is 4.67%, which is below its 5-year historical median of 9.26%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Star Cement Ltd?

Star Cement Ltd Return on equity is 6.04% for FY-2025, which is below its 5-year historical median of 10.8%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Star Cement Ltd?

Star Cement Ltd Cash conversion cycle is 29 days, above its 5-year historical median of 22 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.98	1
ROE	6.04	10.8
ROCE	8.42	12.06
Cash Conversion Cycle	29 days	22 days

Q.6 Gross Profit margin of Star Cement Ltd?

Star Cement Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.8% for FY-2025, which is below its 5-year median of 17.3%, indicating decreasing margins.

Q.7 Operating Profit Margin of Star Cement Ltd?

Star Cement Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.29% for FY-2025, which is in line with its 5-year median of 18.29% indicating stable margins.

Q.8 Net Profit Margin of Star Cement Ltd?

Star Cement Ltd Net Profit Margin is 5.34% for FY-2025, is below with its 5-year median of 10.14%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	15.8	17.3
Operating Profit Margin	18.29	18.29
Net Profit Margin	5.34	10.14

Q.9 Debt to Equity ratio of Star Cement Ltd?

Star Cement Ltd Debt-to-Equity ratio is 0.14, which is lower with the industry average of 0.39, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Star Cement Ltd?

Star Cement Ltd Debt to cash flow from operations is 1.32, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Star Cement Ltd?

Promoters hold 58.12% of the Star Cement Ltd, with 1.33% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Star Cement Ltd vs industry peers?

Star Cement Ltd revenue CAGR is 11.41%, compared to the industry median CAGR of 6.22%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	8.7	6.2
Gross Profit Growth	-2.1	NAN
Operating Profit Growth	4	-3.8
Net Profit Growth	-42.7	-9.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.98	0.82
ROE	6.04	7.62
ROCE	8.42	9.4
Cash Conversion Cycle (days)	29.21	23

Valuation & price assessment

Q.1 Stock return of Star Cement Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 18.73% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	18.7%	25%	9.2%

Q.3 Valuation ratios of Star Cement Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	25.27	23.69	22.85
Price to Book	3.02	2.90	1.92
Price to Sales	2.55	2.55	1.40
EV to EBITDA	10.9	12.03	11.62

Check more companies

1. ACC

2. The Ramco Cements

3. JSW Cement

4. India Cements

5. Nuvoco Vistas Corpor

6. Star Cement

7. JK Lakshmi Cement

8. Birla Corporation

9. Prism Johnson

10. Heidelberg Cement

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