Star Cement Ltd - Stock Valuation and Financial Performance

BSE: 540575 | NSE: STARCEMENT | Cement & Construction Materials | Small Cap

Star Cement Share Price

209.90 0.85 0.41%
as on 10-Oct'24 13:54

DeciZen - make an informed investing decision on Star Cement

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Semi Strong

Star Cement stock performance -

mw4me loader
P/E Ratio (CD):
36.28
Market Cap:
8,449.4 Cr.
52-wk low:
147.2
52-wk high:
256

Is Star Cement Ltd an attractive stock to invest in?

1. Is Star Cement Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Star Cement Ltd is a good quality company.

2. Is Star Cement Ltd undervalued or overvalued?

The key valuation ratios of Star Cement Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Star Cement Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Star Cement Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Star Cement:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Star Cement Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 11.8%12%14.9%21%18.8%18%10.4%12.1%16.9%16.5%-
Value Creation
Index
-0.1-0.10.10.60.40.3-0.3-0.10.20.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,4301,7151,5281,6151,8311,8431,7202,2222,7052,9112,901
Sales YoY Gr.-19.9%-10.9%5.7%13.4%0.7%-6.7%29.2%21.7%7.6%-
Adj EPS 2.83.24.67.97.16.95.66.16.17.35.8
YoY Gr.-13.4%44.6%70%-9.6%-3%-18.6%8.5%0.3%19.1%-
BVPS (₹) 2225.227.335.241.14550.353.759.867.167.8
Adj Net
Profit
119134195331299286232247248295233
Cash Flow from Ops. 26297300421617483350417358490-
Debt/CF from Ops. 3.49.72.710.10000.10.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 8.2%9.7%19.2%7.6%
Adj EPS 11.1%0.5%9%19.1%
BVPS13.2%10.3%10.1%12.2%
Share Price - 18.3% 25.4% 32.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
13.513.617.725.218.71611.811.610.811.58.5
Op. Profit
Mgn %
30.523.326.732.324.521.419.315.517.319.118.7
Net Profit
Mgn %
8.58.213.220.816.715.613.511.19.210.18
Debt to
Equity
10.90.70.3000000.1-
Working Cap
Days
2432663443412831971781381139949
Cash Conv.
Cycle
638476384546482210175

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 19.17%

Return on Equity has declined versus last 3 years average to 8.50%

Net Profit has been subdued in last 3 years 9.04%

Sales growth is not so good in last 4 quarters at 3.28%

Latest Financials - Star Cement Ltd.

Standalone Consolidated
TTM EPS (₹) 3.8 5.8
TTM Sales (₹ Cr.) 2,602 2,901
BVPS (₹.) 41.3 67.8
Reserves (₹ Cr.) 1,630 2,701
P/BV 5.06 3.08
PE 55.05 36.28
From the Market
52 Week Low / High (₹) 147.20 / 255.95
All Time Low / High (₹) 56.00 / 255.95
Market Cap (₹ Cr.) 8,449
Equity (₹ Cr.) 40.4
Face Value (₹) 1
Industry PE 46.1

Management X-Ray of Star Cement:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.130.000.000.000.000.000.000.080.080.60
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Star Cement

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales1,4301,7151,5281,6151,8311,8431,7202,2222,7052,911
Operating Expenses 9941,3161,1201,0931,3821,4491,3871,8772,2362,354
Manufacturing Costs263306273294359451432557742757
Material Costs228347342302437402403571329463
Employee Cost 91108119107116127131159197215
Other Costs 412555386389470469421589968920
Operating Profit 436399408521449394333345468556
Operating Profit Margin (%) 30.5%23.3%26.7%32.3%24.5%21.4%19.3%15.5%17.3%19.1%
Other Income 113453028335226
Interest 878378521497131013
Depreciation 2241711181211069390122131147
Exceptional Items 0-10000-65000
Profit Before Tax 126145215353335322199244380424
Tax 561416303412-3132128
Profit After Tax 121139201336305287187247248295
PAT Margin (%) 8.5%8.1%13.1%20.8%16.7%15.6%10.9%11.1%9.2%10.1%
Adjusted EPS (₹)2.83.24.67.97.16.94.56.16.17.3
Dividend Payout Ratio (%)28%0%0%13%0%14%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 9211,0551,1461,4761,7241,8572,0742,1682,4162,710
Share Capital 42424242424141404040
Reserves 8791,0131,1041,4341,6821,8162,0332,1282,3762,670
Minority Interest4853576268700000
Debt692749672332511115526130
Long Term Debt5023843721992100072
Short Term Debt18936530113350101552658
Trade Payables77140941891259698212277220
Others Liabilities 45246842437728988149120122303
Total Liabilities 2,1902,4662,3922,4362,2582,1222,3362,5062,8423,362

Fixed Assets

Gross Block1,6121,6741,0041,0561,0961,1671,3861,6071,7052,367
Accumulated Depreciation584755141271374471563684814951
Net Fixed Assets1,0289198637857226968239238911,416
CWIP 41495536742381271095511,022
Investments 22112221671732
Inventories109209161295277257235195374335
Trade Receivables310449138146144122132129105151
Cash Equivalents 2024202021128447238531297
Others Assets6808151,1541,153828524547598438340
Total Assets 2,1902,4662,3922,4362,2582,1222,3362,5062,8423,362

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 26297300421616483350417358490
PBT 126145215353335322199244380424
Adjustment 310253186169115747410294138
Changes in Working Capital -154-273-72-35226138108106-474
Tax Paid -21-28-28-66-59-51-30-35-68-76
Cash Flow From Investing Activity -41-79-89-25-193-136-333-289-255-650
Capex -43-81-89-32-80-227-107-197-569-1,036
Net Investments 20-33-11575-191-122251355
Others 1134316-36316331
Cash Flow From Financing Activity -210-14-218-393-348-201-3-1761086
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -142-106-76-173-197-1-10072
Interest Paid -87-83-78-52-14-9-7-13-10-11
Dividend Paid 0000-52-500000
Others 19175-64-168-85-1414-1632025
Net Cash Flow 114-727614614-47114-74
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)13.7514.118.2525.6419.0616.059.5211.6310.811.51
ROCE (%)11.8312.0414.8621.0118.8318.0410.4212.0616.8716.51
Asset Turnover Ratio0.680.760.640.670.780.910.8411.111.04
PAT to CFO Conversion(x)2.170.71.491.252.021.681.871.691.441.66
Working Capital Days
Receivable Days54796932292425201414
Inventory Days33334451574948323540
Payable Days1191141251711311008899272196

Star Cement Ltd Stock News

Star Cement Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Star Cement on 10-Oct-2024 13:54 is ₹209.9.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 10-Oct-2024 13:54 the market cap of Star Cement stood at ₹8,449.4.
The latest P/E ratio of Star Cement as of 10-Oct-2024 13:54 is 55.05.
The latest P/B ratio of Star Cement as of 10-Oct-2024 13:54 is 5.06.
The 52-week high of Star Cement is ₹255.9 and the 52-week low is ₹147.2.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Star Cement is ₹2,602 ( Cr.) .

About Star Cement Ltd

Star Cement (formerly Cement Manufacturing Company Limited) is a public limited company domiciled in India and incorporated on November 02, 2001 as per the provisions of the Companies Act. The company is the largest cement manufacturer in north east India. The manufacturing units are located at Lumshnong, Meghalaya and Guwahati, Assam. The Company is selling its product across north eastern and eastern states of India. The company’s brand ‘Star Cement’ has established itself as the most accredited brand of the region on grounds of both quality and fair pricing.

Star Cement is listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Star Cement is one of the most profitable cement manufacturers in North East India. The company has received BIS License for the products being sold in the market. The company has developed a good image in the Market since launch of the product due to its superior quality. The company has also received ISO certificate.

Business area of the company

The Company is engaged in the manufacturing and selling of Cement Clinker & Cement.

Products

  • Ordinary Portland Cement 53 & 43 Grade
  • Portland Pozzolana Cement (PPC)
  • Star Anti Rust Cement (ARC)
  • Portland Slag Cement

Awards and accreditations

2016-17

  • ABP News HR & Leadership Awards for Excellence in Employee Engagement in February 2016
  • Transport Excellence Award 2016 - National Award in Mining and in the Construction segment
  • Gold Award (Alternative Media - Any single execution on non-conventional OOH) and Silver Award (Outdoor Media Plan of the Year - Local) at OAA 2016
  • Award for Best practices in Employee Engagement - National HRD Network in 2016
  • Awarded first prize in the Thermal Power Station sector - National Energy Conservation Award, 2015 and 2014
  • Award for Most Preferred Cement Brand for five years consecutively at the North East Consumer Awards in 2015

2018-19

  • The company has won the ‘CSR Leadership Award’ in Manufacturing category organised by World CSR Congress and ET NOW for its exemplary contribution to the neighboring community of cement plant operational area through implementation of various CSR projects in the domain of health & sanitation, education, livelihood, rural development, environment and bio-diversity verticals.
  • The company received a ‘Certificate of Appreciation’ from the Office of the Deputy Commissioner, Kamrup, Assam for making adequate arrangement for serving food and water to the devotees during the Ambubachi Mahotsav, 2018.

2019-20

  • The Company has won the coveted ‘Supply Chain & Logistics Excellence (SCALE) Award 2019’- under Cement Industry Category organised by the prestigious Confederation of Indian Industry (CII) Institute of Logistics.
  • The Company has received a Certificate of Appreciation from Deputy Commissioner, Kamrup Metropolitan District for maintaining high standard of Workmanship, Hygiene, Maintenance of Cleanliness, Discipline, Sanitation and in serving drinking water to devotees in Ma Kamakhya Temple during Ambubachi, 2019 which was carried out for a period of one week in the month of June, 2019.

Milestones

2016-17

  • Installed mesh in coal mill outlet to avoid foreign material, resulting in a steady coal flow that is expected to reduce flushing from FK pump and kiln downtime.
  • Installed variable fan drives in raw mill cyclone discharge bag filter, raw mill reject bag filter fan, RABH air slide blower bag filter fan, kiln tire cooling fan, blending silo top bag filter fan and silo aeration blower, lowering power consumption.

2017-18

  • Invested a sum of Rs. 2.8 billion over the past decade and launched aggressive campaigns outside North East India.
  • Engaged local celebrities for endorsing its brands (Debojit Saha, Saurabhee Debbarma and Lou Majaw, among others.

2018-19

  • Company has won the ‘CSR Leadership Award’ in Manufacturing category organised by World CSR Congress and ET NOW for its exemplary contribution to the neighboring community of cement plant operational area through implementation of various CSR projects in the domain of health & sanitation, education, livelihood, rural development, environment and bio-diversity verticals. Your Company also received a ‘Certificate of Appreciation’ from the Office of the Deputy Commissioner, Kamrup, Assam for making adequate arrangement for serving food and water to the devotees during the Ambubachi Mahotsav, 2018”.

2019-20

  • The Company launched Star Anti Rust cement through a 360 degree campaign ‘Dhalai Mein Must Star Anti Rust’ using above-the-line and below-the-line modes of promotion; it established the need for using Anti Rust Cement in dhalai applications.
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