Star Cement Ltd. (STARCEMENT) AI Stock Analysis

• Market Cap: ₹109.73B
• Dividend Yield: 0.37%
• Average Volume (3M): 63.89K
• Price to Earnings (P/E): 46.4
• Beta (1Y): 0.83
• Revenue Growth: 14.59%
• EPS Growth: 1.52%
• Country: IN
• Employees: 855
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 2.40
• Shares Outstanding: 404,180,420
• 10 Day Avg. Volume: 22,804
• 30 Day Avg. Volume: 63,888
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹248.00
• Price Target Upside: -8.20% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 62 Neutral
• Price Target: ₹308.00 ▲(14.01% Upside)

Star Cement Ltd. has a solid financial foundation with strong revenue growth and a robust balance sheet. However, the stock's high valuation and overbought technical indicators suggest caution. The absence of a dividend yield further impacts its attractiveness. Investors should monitor capital expenditures and liquidity closely.

Star Cement Ltd. Business Overview & Revenue Model

Company Description

Star Cement Ltd. is a prominent Indian cement manufacturer recognized for its commitment to producing high-quality cement products. Operating primarily in the northeastern region of India, the company has established itself as a market leader in the production and sale of cement and related products. Star Cement's core products include various grades of cement used in construction and infrastructure development, catering to a wide range of clients including individual home builders, real estate developers, and government bodies.

How the Company Makes Money

Star Cement Ltd. generates revenue primarily through the production and sale of cement. The company operates manufacturing plants that produce different types of cement, such as Portland Pozzolana Cement (PPC) and Ordinary Portland Cement (OPC), which are supplied to a diverse customer base. The revenue model is largely based on the volume of cement sold, with pricing influenced by factors such as demand, production costs, and market competition. Star Cement also benefits from strategic distribution networks that enhance its market reach and sales efficiency. Additionally, the company may engage in partnerships or supply agreements with construction firms and government projects, contributing to steady revenue streams. Key factors influencing earnings include the expansion of infrastructure projects in India and the company's ability to maintain cost-effective production processes.

Star Cement Ltd. Financial Statement Overview

Summary

Star Cement Ltd. demonstrates strong revenue and profit growth with a healthy gross profit margin of 66.9% and a solid net profit margin of 5.3%. The balance sheet is robust with low leverage, indicated by a debt-to-equity ratio of 0.14. However, high capital expenditures have led to negative free cash flow, which could pressure liquidity.

Income Statement

Star Cement Ltd. demonstrated strong revenue and profit growth over recent years. The gross profit margin is healthy at 66.9%, and the net profit margin is solid at 5.3% in the latest annual report. However, there was a noticeable decline in EBIT margin to 7.8%, indicating some operational challenges. Despite these minor setbacks, the overall growth trajectory remains positive.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.14, indicating low financial leverage and risk. Stockholders' equity forms a significant portion of total assets, with an equity ratio of 70.1%, showcasing stability and financial health. Return on equity stands at 5.9%, reflecting moderate profitability for shareholders.

Cash Flow

The operating cash flow remains positive, but the company has reported negative free cash flow due to high capital expenditures, which could pressure liquidity. The operating cash flow to net income ratio is healthy, showcasing good cash conversion, but the free cash flow to net income ratio is negative, highlighting the impact of investments on cash reserves.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	31.63B	31.63B	28.88B	27.05B	22.19B	17.19B
Gross Profit	19.81B	21.15B	18.54B	14.66B	12.23B	9.66B
EBITDA	5.89B	5.89B	5.84B	5.22B	3.81B	2.99B
Net Income	1.69B	1.69B	2.95B	2.48B	2.47B	1.87B
Balance Sheet
Total Assets	41.07B	41.07B	36.02B	31.31B	27.45B	25.62B
Cash, Cash Equivalents and Short-Term Investments	2.27B	2.27B	973.42M	3.10B	3.83B	4.70B
Total Debt	4.03B	4.03B	1.47B	353.50M	156.52M	183.71M
Total Liabilities	12.28B	12.28B	8.92B	7.15B	5.77B	4.88B
Stockholders Equity	28.79B	28.79B	27.10B	24.16B	21.68B	20.74B
Cash Flow
Free Cash Flow	0.00	-2.85B	-5.47B	-1.97B	2.18B	2.43B
Operating Cash Flow	0.00	2.96B	4.90B	3.75B	4.17B	3.50B
Investing Cash Flow	0.00	-5.29B	-6.50B	-2.72B	-2.89B	-3.33B
Financing Cash Flow	0.00	2.24B	864.80M	100.03M	-1.76B	-33.47M

Star Cement Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 270.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:STARCEMENT, the sentiment is Positive. The current price of 270.15 is below the 20-day moving average (MA) of 282.13, above the 50-day MA of 260.04, and above the 200-day MA of 225.91, indicating a neutral trend. The MACD of 1.62 indicates Positive momentum. The RSI at 45.82 is Neutral, neither overbought nor oversold. The STOCH value of 9.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:STARCEMENT.

Star Cement Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANDUMA	73 Outperform	78.06B	15.86	18.00%	0.26%	146.02%	43.05%
STARCEMENT	62 Neutral	₹109.73B	46.42		0.37%	14.59%	1.52%
HEG	62 Neutral	100.05B	50.83	2.58%	0.35%	-3.91%	0.63%
PRIVISCL	62 Neutral	93.25B	42.86	16.95%	0.20%	21.50%	78.82%
GRAPHITE	60 Neutral	108.31B	30.17	7.88%	1.94%	-14.81%	-66.60%
INDIAGLYCO	57 Neutral	52.08B	21.36	10.24%	0.48%	7.46%	33.78%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%