Star Cement Ltd. (STARCEMENT) AI Stock Analysis

• Market Cap: ₹88.50B
• Dividend Yield: 0.45%
• Average Volume (3M): 16.25K
• Price to Earnings (P/E): 29.2
• Beta (1Y): 0.76
• Revenue Growth: 18.13%
• EPS Growth: 52.87%
• Country: IN
• Employees: 855
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 1.80
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹238.00 ▲(7.06% Upside)

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

Consistent revenue growth highlights the company's ability to capture market demand and expand its market presence, ensuring long-term business sustainability.

Balance Sheet Health

A low debt-to-equity ratio indicates financial stability and reduces risk, providing the company with flexibility to invest in growth opportunities.

Profit Margins

Strong profit margins demonstrate efficient cost management and pricing power, which are crucial for maintaining profitability in competitive markets.

Negative Factors

Negative Free Cash Flow

Negative free cash flow can strain liquidity and limit the company's ability to fund operations and growth initiatives without external financing.

EBIT Margin Decline

A declining EBIT margin suggests rising operational costs or pricing pressures, which could impact future profitability if not addressed.

High Capital Expenditures

While investments are necessary for growth, excessive capital expenditures can deplete cash reserves, affecting the company's financial flexibility.

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 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 robust financial performance with strong revenue and profitability growth, supported by a healthy balance sheet with low leverage. However, high capital expenditures have negatively impacted free cash flow, which requires careful management to maintain 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: Negative
• Last Price: 222.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 221.57, below the 50-day MA of 228.34, and below the 200-day MA of 236.50, indicating a bearish trend. The MACD of -1.80 indicates Negative momentum. The RSI at 41.38 is Neutral, neither overbought nor oversold. The STOCH value of 25.13 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	₹109.37B	18.27	―	0.18%	196.22%	71.39%
INDIAGLYCO	65 Neutral	₹63.88B	22.77	―	0.47%	5.61%	33.63%
PRIVISCL	64 Neutral	₹105.30B	39.47	―	0.15%	24.25%	96.45%
HEG	62 Neutral	₹110.88B	43.00	―	0.33%	3.93%	41.77%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
STARCEMENT	58 Neutral	₹88.50B	29.24	―	0.45%	18.13%	52.87%
GRAPHITE	54 Neutral	₹122.75B	50.94	―	1.93%	-7.12%	-48.28%