Star Cement Ltd Stock Analysis

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

BSE Share Price 23-Sep-2022 18:01
101.55 -2.30 (-2.21%)

DeciZen - Make an Informed Decision on Star Cement

Overall Rating

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

Semi Strong

Star Cement Price Chart

P/E Ratio (CD) :
16.53
Market Cap :
4,104.5 Cr.
52-wk low :
81.5
52-wk high :
111.1
Bole Toh?

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 Somewhat Undervalued 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 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'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 3.9%3%9.7%9.9%12.3%18.5%16.1%15.4%11.8%12%-
Value Creation Index -0.7-0.8-0.3-0.3-0.10.40.20.1-0.2-0.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 5951,0281,4301,7151,5281,6151,8311,8431,7202,2222,377
YoY Gr. Rt. %-72.8%39.2%19.9%-10.9%5.7%13.4%0.7%-6.7%29.2%-
Adj EPS 10.2-0.828.33.24.67.97.16.95.66.16.1
YoY Gr. Rt. %--108.1%NA-88.7%44.6%70%-9.6%-2.8%-18.8%8.5%-
BVPS (₹) 205201.1219.825.227.335.241.14550.353.755.3
Adj Net Profit 42.8-3.5119134195331299286232247246
Cash Flow from Ops. -74.223326297300421617483350417-
Debt/CF from Ops. -12.24.13.49.72.710.1000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 15.8%7.8%6.7%29.2%
Adj EPS -5.6%5.7%-5%8.5%
BVPS -13.814.49.36.7
Share Price - -1.1% 1.4% -6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 5.9-0.413.513.617.725.218.71611.811.611.2
Op. Profit Mgn % 19.922.830.523.326.732.324.521.419.315.515.9
Net Profit Mgn % 7.3-0.38.58.213.220.816.715.613.511.110.4
Debt to Equity 1.11.110.90.70.30000-
Working Cap Days 3412752432663443412831971781320
Cash Conv. Cycle 1016563847638454648310

Recent Performance Summary

Sales growth is good in last 4 quarters at 21.71%

Return on Equity has declined versus last 3 years average to 11.20%

Sales growth has been subdued in last 3 years 6.66%

Net Profit has been subdued in last 3 years -5.02%

Latest Financials - Star Cement Ltd.

Standalone Consolidated
TTM EPS (₹) 4 6.1
TTM Sales (₹ Cr.) 2,323 2,377
BVPS (₹.) 33.2 55.3
Reserves (₹ Cr.) 1,300 2,196
P/BV 3.06 1.82
PE 25.11 16.53
From the Market
52 Week Low / High (₹) 81.50 / 111.05
All Time Low / High (₹) 56.00 / 151.35
Market Cap (₹ Cr.) 4,104
Equity (₹ Cr.) 40.4
Face Value (₹) 1
Industry PE 32.8

Management X-Ray of Star Cement :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.010.010.040.040.040.190.13
* Pledged shares as % of Promoter's holding (%)

Event Update

Login/Register to view analysis.

Analyst's Notes

Key Ratios of Star Cement

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

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.
Read More Read Less
You have 2 views remaining as a Guest User. To get DeciZen Rating of 3,500+ Stocks based on their Quality, Valuation and Price Trend Login | Register Now