Star Cement Ltd. (STARCEMENT) AI Stock Analysis

• Market Cap: ₹82.19B
• Dividend Yield: 0.45%
• Average Volume (3M): 16.25K
• Price to Earnings (P/E): 30.4
• Beta (1Y): 0.77
• Revenue Growth: 18.13%
• EPS Growth: 52.87%
• Country: IN
• Employees: 855
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 2.00
• 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: ₹310.00
• Price Target Upside: 39.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 9.89
• Revenue Forecast (FY): ₹37.17B

• Rating: 58 Neutral
• Price Target: ₹211.00 ▼(-5.08% Downside)
• Action: Reiterated Date: 11/19/25
• Date: Action: Reiterated 11/19/25

Star Cement Ltd. has a strong financial foundation with robust revenue and profit growth, supported by a healthy balance sheet. However, the stock is currently facing bearish technical indicators, and its high P/E ratio suggests potential overvaluation. The negative free cash flow due to high capital expenditures also poses a risk to liquidity.

Positive Factors

Revenue Growth

Sustained top-line growth (≈20.8%) with very strong EPS expansion demonstrates expanding market adoption and improving unit economics. Over the next 2–6 months this supports higher utilization, better operating leverage and stronger cash generation potential as scale absorbs fixed costs.

High Gross Margin

A 66.9% gross margin signals material pricing power or low direct costs versus peers, creating a durable buffer against input-cost volatility. This margin headroom supports reinvestment, pricing flexibility and resilience of core profitability across an industry cycle.

Low Financial Leverage

Very low leverage and a 70.1% equity ratio give the company balance-sheet flexibility to fund expansion and weather downturns without heavy interest burden. This structural strength lowers refinancing risk and preserves strategic optionality for capacity investment.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow driven by sizable capex reduces internal liquidity and limits free cash available for dividends, debt reduction or opportunistic investments. Over several quarters this can force external financing or slower organic growth if capex persists.

Declining EBIT Margin

A drop in EBIT margin to 7.8% indicates rising operating costs or lower plant efficiency. If structural, this erodes operating leverage and the company’s ability to convert revenue into shareholder returns, pressuring ROE and limiting reinvestment capacity.

Regional Concentration Risk

Concentration in the North East and nearby markets narrows the demand base and increases sensitivity to local construction cycles, logistics costs and regional policy shifts. Limited geographic diversification can cap growth and raise volatility versus national peers.

Star Cement Ltd. Business Overview & Revenue Model

Company Description

Star Cement Limited manufactures and sells cement and clinker products in north eastern and eastern states of India. It operates through Cement and Power segments. The company offers ordinary Portland, Portland pozzolana, Portland slag, and antirust cement products under the Star Cement brand. It also generates power. The company markets its products through a network of dealers and retailers. It also exports its products to Nepal and Bhutan. The company was formerly known as Cement Manufacturing Company Limited and changed its name to Star Cement Limited in June 2016. Star Cement Limited was incorporated in 2001 and is based in Kolkata, India. Star Cement Limited is a subsidiary of Century Plyboards (India) Limited.

How the Company Makes Money

Star Cement makes money primarily by manufacturing and selling cement to the construction ecosystem (e.g., individual home builders, contractors, and infrastructure/project customers). Its core revenue stream is the sale of cement (typically sold under its brand through a network of dealers/retailers and, where applicable, directly to larger institutional or project customers). Revenue is driven by sales volumes (dispatches) and realized price per tonne/bag in its served geographies. Earnings are influenced by operating leverage from plant utilization, the cost of key inputs (such as limestone, fuel/power, and freight), and the efficiency of its production and distribution network. Specific details on any additional non-cement revenue streams or material partnerships are null.

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 financial 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	34.94B	31.63B	28.88B	25.76B	22.19B	17.19B
Gross Profit	22.97B	21.15B	18.54B	16.61B	12.23B	9.66B
EBITDA	7.98B	5.89B	5.84B	5.22B	3.81B	2.99B
Net Income	3.03B	1.69B	2.95B	2.48B	2.47B	1.87B
Balance Sheet
Total Assets	43.72B	41.07B	36.02B	31.31B	27.45B	25.62B
Cash, Cash Equivalents and Short-Term Investments	1.56B	2.27B	945.46M	3.10B	3.83B	4.70B
Total Debt	6.43B	4.03B	1.47B	353.50M	156.52M	183.71M
Total Liabilities	13.65B	12.28B	8.92B	7.15B	5.77B	4.88B
Stockholders Equity	30.08B	28.79B	27.10B	24.16B	21.68B	20.74B
Cash Flow
Free Cash Flow	-432.57M	-2.85B	-5.47B	-1.97B	2.18B	2.43B
Operating Cash Flow	1.69B	2.96B	4.90B	3.75B	4.17B	3.50B
Investing Cash Flow	-2.75B	-5.29B	-6.50B	-2.72B	-2.89B	-3.33B
Financing Cash Flow	1.71B	2.24B	864.80M	100.03M	-1.76B	-33.47M

Star Cement Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 222.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 222.3 is above the 20-day moving average (MA) of 210.96, above the 50-day MA of 215.24, and below the 200-day MA of 235.35, indicating a bearish trend. The MACD of -4.40 indicates Positive momentum. The RSI at 37.75 is Neutral, neither overbought nor oversold. The STOCH value of 24.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹97.12B	25.50	―	0.18%	196.22%	71.39%
INDIAGLYCO	65 Neutral	₹58.80B	23.54	―	0.47%	5.61%	33.63%
PRIVISCL	64 Neutral	₹112.01B	35.11	―	0.15%	24.25%	96.45%
HEG	62 Neutral	₹100.25B	14.55	―	0.33%	3.93%	41.77%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
STARCEMENT	58 Neutral	₹82.19B	30.41	―	0.45%	18.13%	52.87%
GRAPHITE	54 Neutral	₹126.12B	46.09	―	1.93%	-7.12%	-48.28%