Star Cement Ltd. (STARCEMENT) AI Stock Analysis

• Market Cap: ₹104.30B
• Dividend Yield: 0.39%
• Average Volume (3M): 16.25K
• Price to Earnings (P/E): 44.1
• Beta (1Y): 0.82
• 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: 17,163
• 30 Day Avg. Volume: 16,251
• PEG Ratio: -1.21
• Price to Book (P/B): 3.03
• Price to Sales (P/S): 2.75
• P/FCF Ratio: -30.60
• 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: ₹311.00
• Price Target Upside: 21.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ₹270.00 ▲(5.35% Upside)

Star Cement Ltd. has a solid financial foundation with strong revenue growth and a healthy balance sheet. However, the stock faces challenges with high capital expenditures impacting free cash flow and technical indicators suggesting weak momentum. Additionally, the high P/E ratio indicates potential overvaluation, which could limit upside potential.

Star Cement Ltd. Business Overview & Revenue Model

Company Description

Star Cement Ltd. (STARCEMENT) is a leading cement manufacturing company in India, primarily engaged in the production and marketing of cement and clinker. The company operates in the building materials sector and is known for its high-quality products, which include various types of cement such as Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC). With a strong presence in the northeastern region of India, Star Cement has established itself as a trusted brand in the construction industry, catering to both residential and commercial projects.

How the Company Makes Money

Star Cement Ltd. generates revenue primarily through the sale of cement and clinker products. The company's main revenue stream comes from the direct sale of these products to construction companies, contractors, and individual customers in both retail and bulk segments. Additionally, Star Cement may benefit from strategic partnerships with suppliers and distributors that help enhance its market reach and operational efficiency. The company also capitalizes on regional demand dynamics and infrastructure development projects, which drive cement consumption. Seasonal fluctuations in construction activity and government initiatives in housing and infrastructure further influence the company's earnings potential.

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	33.24B	31.63B	28.88B	25.76B	22.19B	17.19B
Gross Profit	23.03B	21.15B	18.54B	16.61B	12.23B	9.66B
EBITDA	7.02B	5.89B	5.84B	5.22B	3.81B	2.99B
Net Income	2.37B	1.69B	2.95B	2.48B	2.47B	1.87B
Balance Sheet
Total Assets	0.00	41.07B	36.02B	31.31B	27.45B	25.62B
Cash, Cash Equivalents and Short-Term Investments	524.30M	2.27B	945.46M	3.10B	3.83B	4.70B
Total Debt	0.00	4.03B	1.47B	353.50M	156.52M	183.71M
Total Liabilities	-28.79B	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: Neutral
• Last Price: 256.30
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:STARCEMENT, the sentiment is Neutral. The current price of 256.3 is below the 20-day moving average (MA) of 258.92, below the 50-day MA of 270.20, and above the 200-day MA of 232.04, indicating a neutral trend. The MACD of -3.14 indicates Positive momentum. The RSI at 44.65 is Neutral, neither overbought nor oversold. The STOCH value of 33.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	―	₹105.80B	21.49	―	0.19%	146.02%	43.05%
HEG	―	₹98.90B	50.24	―	0.31%	-3.91%	0.63%
PRIVISCL	―	₹112.63B	48.61	―	0.18%	21.50%	78.82%
GRAPHITE	―	₹107.69B	30.00	―	1.73%	-14.81%	-66.60%
INDIAGLYCO	―	₹61.67B	24.91	―	0.52%	7.46%	33.78%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
STARCEMENT	―	₹104.30B	44.12	―	0.39%	14.59%	1.52%

Star Cement Ltd. Corporate Events

Star Cement Ltd. Successfully Concludes 24th AGM with All Resolutions Passed

Star Cement Ltd. held its 24th Annual General Meeting on September 23, 2025, through video conferencing, where all resolutions were passed with the requisite majority. The meeting involved remote e-voting, and the results, along with the Scrutinizer’s Report, are available on the company’s website and the National Securities Depository Limited. This successful AGM and the passing of resolutions indicate a stable governance structure and operational transparency, potentially strengthening stakeholder confidence.

Star Cement Ltd. Pays Regulatory Penalty with No Operational Impact

Star Cement Ltd. has complied with a directive from the Regional Provident Fund Commissioner-II, Shillong, by paying a penalty of ₹10,62,847 for damages under Section 14B of the EPF & MP Act. This payment, made on September 9, 2025, has no financial impact on the company’s operations, indicating a stable financial standing despite the regulatory compliance issue.

Star Cement Initiates ‘Saksham Niveshak’ Campaign for Shareholder Engagement

Star Cement Ltd. has launched a 100-day campaign named ‘Saksham Niveshak’ as directed by the Investor Education and Protection Fund Authority (IEPFA) under the Government of India. The campaign aims to engage shareholders to update their KYC details and claim any unclaimed dividends to prevent their transfer to the IEPFA, thereby ensuring better shareholder engagement and compliance.

Star Cement Launches ‘Saksham Niveshak’ Campaign for Shareholders

Star Cement Limited has announced a ‘100 Days Campaign’ named ‘Saksham Niveshak’ aimed at shareholders with unpaid or unclaimed dividends or shares. This initiative, publicized through major newspapers, underscores the company’s commitment to addressing shareholder concerns and enhancing transparency, potentially strengthening its market position and stakeholder trust.

Star Cement Ltd. Faces Penalty for EPF Act Non-Compliance

Star Cement Ltd. has been ordered by the Regional Provident Fund Commissioner in Shillong to pay damages amounting to ₹10,62,847 due to non-compliance with Section 14B of the EPF & MP Act. The company has stated that this financial penalty will not have any significant impact on its operations or financial activities.