Star Cement Ltd - Stock Valuation and Financial Performance

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

Star Cement Share Price

226.95 -3.35 -1.45%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on Star Cement

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Star Cement stock performance -

mw4me loader
P/E Ratio (CD):
30.22
Market Cap:
9,172.9 Cr.
52-wk low:
110
52-wk high:
241.9

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 average 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 Overvalued zone.

3. Is Star Cement Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Star Cement Ltd is likely to Rise 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 some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 3%9.7%9.9%12.3%18.5%16.1%15.4%11.8%12%11%-
Value Creation
Index
-0.8-0.3-0.3-0.10.40.20.1-0.2-0.1-0.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,0281,4301,7151,5281,6151,8311,8431,7202,2222,7052,822
Sales YoY Gr.-39.2%19.9%-10.9%5.7%13.4%0.7%-6.7%29.2%21.7%-
Adj EPS -0.12.83.24.67.97.16.95.66.16.17.5
YoY Gr.-NA13.4%44.6%70%-9.6%-3%-18.6%8.5%0.3%-
BVPS (₹) 20.12225.227.335.241.14550.353.759.864.9
Adj Net
Profit
-3.5119134195331299286232247248304
Cash Flow from Ops. 23326297300421617483350417375-
Debt/CF from Ops. 4.13.49.72.710.10000.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 11.4%10.9%13.6%21.7%
Adj EPS NA-4.9%-4%0.3%
BVPS12.9%11.2%9.9%11.4%
Share Price - 18% 31.1% 96.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
-0.413.513.617.725.218.71611.811.610.812.1
Op. Profit
Mgn %
22.830.523.326.732.324.521.419.315.517.319.2
Net Profit
Mgn %
-0.38.58.213.220.816.715.613.511.19.210.8
Debt to
Equity
1.110.90.70.300000-
Working Cap
Days
27524326634434128319717813812858
Cash Conv.
Cycle
6563847638454648221018

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 12.00%

Sales growth is growing at healthy rate in last 3 years 13.64%

Net Profit has been subdued in last 3 years -3.96%

Sales growth is not so good in last 4 quarters at 7.16%

Latest Financials - Star Cement Ltd.

Standalone Consolidated
TTM EPS (₹) 5.4 7.5
TTM Sales (₹ Cr.) 2,860 2,822
BVPS (₹.) 39.8 64.9
Reserves (₹ Cr.) 1,569 2,582
P/BV 5.70 3.50
PE 42.45 30.22
From the Market
52 Week Low / High (₹) 110.00 / 241.85
All Time Low / High (₹) 56.00 / 241.85
Market Cap (₹ Cr.) 9,173
Equity (₹ Cr.) 40.4
Face Value (₹) 1
Industry PE 41.8

Management X-Ray of Star Cement:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.040.040.190.130.000.000.000.000.000.00
* 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales1,0281,4301,7151,5281,6151,8311,8431,7202,2222,705
Operating Expenses 7949941,3161,1201,0931,3821,4491,3871,8772,236
Manufacturing Costs239263306273294359451432557740
Material Costs150228347342302437402403571613
Employee Cost 7391108119107116127131159196
Other Costs 331412555386389470469421589688
Operating Profit 234436399408521449394333345468
Operating Profit Margin (%) 22.8%30.5%23.3%26.7%32.3%24.5%21.4%19.3%15.5%17.3%
Other Income 31134530283352
Interest 838783785214971310
Depreciation 1572241711181211069390122131
Exceptional Items -10-10000-6500
Profit Before Tax -5126145215353335322199244380
Tax -1561416303412-3132
Profit After Tax -3121139201336305287187247248
PAT Margin (%) -0.3%8.5%8.1%13.1%20.8%16.7%15.6%10.9%11.1%9.2%
Adjusted EPS (₹)-0.12.83.24.67.97.16.94.56.16.1
Dividend Payout Ratio (%)-250%28%0%0%13%0%14%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 8439211,0551,1461,4761,7241,8572,0742,1682,416
Share Capital 42424242424241414040
Reserves 8018791,0131,1041,4341,6821,8162,0332,1282,376
Minority Interest45485357626870000
Debt819692749672332511115526
Long Term Debt64950238437219921000
Short Term Debt170189365301133501015526
Trade Payables7277140941891259698212282
Others Liabilities 33745246842437728988149120360
Total Liabilities 2,1162,1902,4662,3922,4362,2582,1222,3362,5063,084

Fixed Assets

Gross Block1,5051,6121,6741,0041,0561,0961,1671,3861,6071,705
Accumulated Depreciation363584755141271374471563684814
Net Fixed Assets1,1431,028919863785722696823923891
CWIP 994149553674238127109551
Investments 22211222167173
Inventories155109209161295277257235195374
Trade Receivables125310449138146144122132129105
Cash Equivalents 1120242020211284472385312
Others Assets5816808151,1541,153828524547598680
Total Assets 2,1162,1902,4662,3922,4362,2582,1222,3362,5063,084

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 23326297300421616483350417375
PBT -5126145215353335322199244380
Adjustment 2383102531861691157474102105
Changes in Working Capital -0-154-273-72-35226138108106-42
Tax Paid 0-21-28-28-66-59-51-30-35-68
Cash Flow From Investing Activity -117-41-79-89-25-193-136-333-289-272
Capex -117-43-81-89-32-80-227-107-197-569
Net Investments -220-33-11575-191-122251
Others 31134316-363147
Cash Flow From Financing Activity -132-210-14-218-393-348-201-3-17610
Net Proceeds from Shares -2000000000
Net Proceeds from Borrowing -129-142-106-76-173-197-1-100
Interest Paid -83-87-83-78-52-14-9-7-13-10
Dividend Paid -100000-52-50000
Others 9319175-64-168-85-1414-16320
Net Cash Flow -16114-727614614-47114
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)-0.4113.7514.118.2525.6419.0616.059.5211.6310.8
ROCE (%)4.4111.8312.0414.8621.0118.8318.0410.4212.0616.87
Asset Turnover Ratio0.50.680.760.640.670.780.910.8411.06
PAT to CFO Conversion(x)N/A2.170.71.491.252.021.681.871.691.51
Working Capital Days
Receivable Days37547969322924252014
Inventory Days49333344515749483235
Payable Days1281191141251711311008899147

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 12-Apr-2024 16:59 is ₹226.9.
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 12-Apr-2024 16:59 the market cap of Star Cement stood at ₹9,172.9.
The latest P/E ratio of Star Cement as of 12-Apr-2024 16:59 is 42.45.
The latest P/B ratio of Star Cement as of 12-Apr-2024 16:59 is 5.70.
The 52-week high of Star Cement is ₹241.8 and the 52-week low is ₹110.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Star Cement is ₹2,860 ( 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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