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INVESTMENT INSIGHTS

Check Before You Invest : Star Cement Ltd

BSE: 540575 NSE: STARCEMENT ISIN: INE460H01021
  |   Sector:  Construction & Infrastructure   |   Industry:  Cement & Construction Materials

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 quality company, based on a 10 year financial track record.
Q.3 Is Star Cement Ltd undervalued or overvalued?
Star Cement Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Star Cement Ltd a good buy now?
Star Cement Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 11.4% , indicating slower growth.
Q.2 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.3 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.4 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 Historic Median
Gross Profit Margin 15.8 17.3
Operating Profit Margin 18.29 18.29
Net Profit Margin 5.34 10.14
Q.5 Return on Asset of Star Cement Ltd?
Star Cement Ltd Return on Asset is 4.67(x), which is below its 5 year historical median of 9.26(x), indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Star Cement Ltd?
Star Cement Ltd Return on equity is 6.04% for FY-2025 , which is below its historical median of 10.8%, indicating the business is making worse use of its shareholders capital.
Q.7 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 estimated weighted average cost of capital(WACC) 13.5%, indicating value preservation.
Q.8 Cash conversion cycle of Star Cement Ltd?
Star Cement Ltd Cash conversion cycle is 29 , above its historical median of 22 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.98 1
ROE 6.04 10.8
ROCE 8.42 12.06
Cash Conversion Cycle 29 22
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, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Star Cement Ltd?
Promoters hold 57.62% 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 5.91% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 3,163.4 1,298.5
Gross Profit 499.8 77.3
Operating Profit 578 97
Net Profit 169 43
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.98 0.82
ROE 6.04 7.28
ROCE 8.42 9.38
Cash Conversion Cycle 29.21 17

Valuation & price assessment

Q.1 Stock return of Star Cement Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 0% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 16.3% 22.8% -2.9%
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 measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 23.75 22.22 34.86
Price to Book 2.84 2.00 1.92
Price to Sales 2.39 2.42 1.25
EV to EBITDA 10.28 10.21 11.55

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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