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Last Updated on: 03 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 540575 | NSE: STARCEMENT

Star Cement Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 3, 2024, 9:15 pm

Market Cap 7,907 Cr.
Current Price 196
High / Low256/162
Stock P/E40.0
Book Value 67.9
Dividend Yield0.00 %
ROCE16.5 %
ROE11.5 %
Face Value 1.00
PEG Ratio8.14

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Star Cement Ltd

Competitors of Star Cement Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bheema Cements Ltd 73.4 Cr. 22.535.3/21.0 13.20.00 %11.8 %56.4 % 10.0
UltraTech Cement Ltd 3,41,923 Cr. 11,85212,138/9,13052.0 2,1260.59 %15.1 %12.2 % 10.0
The Ramco Cements Ltd 24,593 Cr. 1,0401,058/70089.2 3020.24 %8.17 %5.63 % 1.00
The India Cements Ltd 11,486 Cr. 371386/173 1700.00 %0.78 %4.81 % 10.0
Star Cement Ltd 7,907 Cr. 196256/16240.0 67.90.00 %16.5 %11.5 % 1.00
Industry Average35,225.68 Cr1,937.6238.19530.040.58%11.09%16.06%7.13

All Competitor Stocks of Star Cement Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales511407555749665594617829760585651914751
Expenses418335487636541525509663631487503734635
Operating Profit9372681131247010816612999149180116
OPM %18%18%12%15%19%12%18%20%17%17%23%20%15%
Other Income89791414121396481
Interest2722333123346
Depreciation26293235303234353236374273
Profit before tax7444418510549831431046511314139
Tax %8%-5%-8%-4%36%37%36%33%10%38%35%38%21%
Net Profit68474488683153969341748831
EPS in Rs1.651.131.082.191.670.771.312.382.311.011.822.170.77

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales4811,0281,4301,7151,5281,6151,8311,8431,7202,2222,7052,9112,901
Expenses3627959941,3161,1191,0931,3821,4491,3871,8772,2362,3542,358
Operating Profit119233436399408521449394333345468556543
OPM %25%23%31%23%27%32%25%21%19%16%17%19%19%
Other Income231124529-3633522619
Interest278387837852149713101316
Depreciation451572241711181211069390122131147187
Profit before tax49-5126145215353335322199244380424359
Tax %12%-28%4%4%6%5%9%11%6%-1%35%30%
Net Profit43-3121139195336305287187247248295233
EPS in Rs10.24-1.0028.303.204.647.897.136.924.546.116.137.305.77
Dividend Payout %0%-250%28%0%0%13%0%14%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-106.98%4133.33%14.88%40.29%72.31%-9.23%-5.90%-34.84%32.09%0.40%18.95%
Change in YoY Net Profit Growth (%)0.00%4240.31%-4118.46%25.41%32.02%-81.53%3.32%-28.94%66.93%-31.68%18.55%

Star Cement Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:11%
5 Years:10%
3 Years:19%
TTM:6%
Compounded Profit Growth
10 Years:61%
5 Years:0%
3 Years:6%
TTM:-30%
Stock Price CAGR
10 Years:%
5 Years:16%
3 Years:26%
1 Year:15%
Return on Equity
10 Years:14%
5 Years:12%
3 Years:11%
Last Year:12%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:36 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital42424242424242414140404040
Reserves8178018791,0131,1041,4341,6821,8162,0332,1282,3762,6702,706
Borrowings8309648809408014327413181635147379
Other Liabilities288309388471534597499488470561680745691
Total Liabilities1,9782,1162,1902,4662,4802,5062,2972,3582,5622,7453,1313,6023,816
Fixed Assets1,1301,1431,0289198637857226968239238911,4162,067
CWIP1299941495536742381271095511,022467
Investments22221122216717322
Other Assets7178731,1191,4961,5611,6841,4981,4231,6111,5451,5171,1631,280
Total Assets1,9782,1162,1902,4662,4802,5062,2972,3582,5622,7453,1313,6023,816

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-7423326297300421616483350417358490
Cash from Investing Activity +-316-114-41-79-89-25-193-136-333-289-255-650
Cash from Financing Activity +392-132-210-14-218-393-348-201-3-1761086
Net Cash Flow2-14114-727614614-47114-74

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-711.00-731.00-444.00-541.00-393.0089.00375.00381.00315.00329.00433.00409.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days634479963333292428211419
Inventory Days590378174221173356232233212124400255
Days Payable1581761221481012281058789135297167
Cash Conversion Cycle49524713016810516115617115110117107
Working Capital Days19657681122081921199691313-6
ROCE %4%12%12%14%20%18%17%13%12%17%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters66.89%67.06%67.33%67.37%67.42%67.03%67.12%66.76%66.55%66.48%66.59%66.49%
FIIs0.14%0.18%0.20%0.28%0.40%0.53%0.63%0.69%0.77%1.05%1.52%1.61%
DIIs6.50%6.33%6.15%6.14%6.15%6.15%6.15%6.23%6.08%6.02%6.11%5.03%
Public26.47%26.43%26.32%26.21%26.03%26.29%26.10%26.33%26.59%26.43%25.77%26.89%
No. of Shareholders51,44452,24253,96952,53950,30445,05442,37343,86652,00154,13056,63665,415

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Flexi Cap Fund9,835,2270.91206.669,835,2272024-12-020%
Motilal Oswal Nifty Microcap 250 Index Fund152,6600.243.219,835,2272024-12-02-98.45%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)7.306.136.044.546.85
Diluted EPS (Rs.)7.306.136.044.546.85
Cash EPS (Rs.)10.939.379.116.729.22
Book Value[Excl.RevalReserv]/Share (Rs.)67.0559.7853.6550.2946.73
Book Value[Incl.RevalReserv]/Share (Rs.)67.0559.7853.6550.2946.73
Revenue From Operations / Share (Rs.)72.0166.9254.9741.7044.71
PBDIT / Share (Rs.)14.4212.889.378.7510.28
PBIT / Share (Rs.)10.799.636.366.578.02
PBT / Share (Rs.)10.489.396.034.837.80
Net Profit / Share (Rs.)7.306.136.114.546.97
NP After MI And SOA / Share (Rs.)7.306.136.114.546.92
PBDIT Margin (%)20.0219.2417.0420.9722.98
PBIT Margin (%)14.9814.3911.5615.7417.94
PBT Margin (%)14.5514.0310.9611.5817.43
Net Profit Margin (%)10.139.1511.1010.8815.58
NP After MI And SOA Margin (%)10.139.1511.1010.8815.48
Return on Networth / Equity (%)10.8810.2411.389.0215.37
Return on Capital Employeed (%)15.4614.9510.9712.1916.10
Return On Assets (%)8.197.908.987.3012.10
Long Term Debt / Equity (X)0.020.000.000.000.00
Total Debt / Equity (X)0.040.010.000.010.01
Asset Turnover Ratio (%)0.860.920.970.780.90
Current Ratio (X)0.981.892.813.593.48
Quick Ratio (X)0.551.182.322.902.64
Inventory Turnover Ratio (X)1.312.265.773.853.46
Dividend Payout Ratio (NP) (%)0.000.000.000.0014.44
Dividend Payout Ratio (CP) (%)0.000.000.000.0010.89
Earning Retention Ratio (%)0.000.000.000.0085.56
Cash Earning Retention Ratio (%)0.000.000.000.0089.11
Interest Coverage Ratio (X)46.2553.6828.3851.6345.39
Interest Coverage Ratio (Post Tax) (X)24.4226.5419.5037.0231.77
Enterprise Value (Cr.)9177.064233.093242.163527.032616.08
EV / Net Operating Revenue (X)3.151.561.462.051.42
EV / EBITDA (X)15.758.138.569.786.17
MarketCap / Net Operating Revenue (X)3.141.671.632.331.53
Retention Ratios (%)0.000.000.000.0085.55
Price / BV (X)3.371.871.671.931.52
Price / Net Operating Revenue (X)3.141.671.632.331.53
EarningsYield0.030.050.060.040.10

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Star Cement Ltd as of December 3, 2024 is: 318.59

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 3, 2024, Star Cement Ltd is Undervalued by 62.55% compared to the current share price 196.00

Intrinsic Value of Star Cement Ltd as of December 3, 2024 is: 334.24

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 3, 2024, Star Cement Ltd is Undervalued by 70.53% compared to the current share price 196.00

Last 5 Year EPS CAGR: 4.91%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1,650.69 cr) compared to borrowings (425.31 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (38.23 cr) and profit (242.00 cr) over the years.
  1. The stock has a low average ROCE of 12.92%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 97.25, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 168.17, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Star Cement Ltd:
    1. Net Profit Margin: 10.13%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 15.46% (Industry Average ROCE: 11.09%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 10.88% (Industry Average ROE: 14.99%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 24.42
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.55
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 40 (Industry average Stock P/E: 22.92)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.04
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Star Cement Ltd. is a Public Limited Listed company incorporated on 02/11/2001 and has its registered office in the State of Meghalaya, India. Company’s Corporate Identification Number(CIN) is L26942ML2001PLC006663 and registration number is 006663. Currently Company is involved in the business activities of Manufacture of clinkers and cement. Company’s Total Operating Revenue is Rs. 2177.99 Cr. and Equity Capital is Rs. 40.42 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
CementVillage Lumshnong, PO : Khaliehriat, Jaintia Hills Dist. Meghalaya 793210investors@starcement.co.in
http://www.starcement.co.in
Management
NamePosition Held
Mr. Rajendra ChamariaVice Chairman & Mng.Director
Mr. Sanjay AgarwalManaging Director
Mr. Prem Kumar BhajankaManaging Director
Mr. Tushar BhajankaDeputy Managing Director
Mr. Brij Bhushan AgarwalDirector
Mr. Amit Kiran DebIndependent Director
Mr. Deepak SinghalIndependent Director
Mr. Nirmalya BhattacharyyaIndependent Director
Ms. Ibaridor Katherine WarIndependent Director
Mrs. Plistina DkharIndependent Director
Mr. Vivek ChawlaIndependent Director
Mr. Jagdish Chandra ToshniwalIndependent Director
Mr. Ramit BudhrajaIndependent Director
Mr. Keshav BhajankaDirector
Mr. Pankaj KejriwalExecutive Director

FAQ

What is the latest intrinsic value of Star Cement Ltd?

The latest intrinsic value of Star Cement Ltd as on 03 December 2024 is ₹318.59, which is 62.55% higher than the current market price of ₹196.00. The stock has a market capitalization of 7,907 Cr. and recorded a high/low of ₹256/162 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹2,706 Cr and total liabilities of ₹3,816 Cr.

What is the Market Cap of Star Cement Ltd?

The Market Cap of Star Cement Ltd is 7,907 Cr..

What is the current Stock Price of Star Cement Ltd as on 03 December 2024?

The current stock price of Star Cement Ltd as on 03 December 2024 is 196.

What is the High / Low of Star Cement Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Star Cement Ltd stocks is 256/162.

What is the Stock P/E of Star Cement Ltd?

The Stock P/E of Star Cement Ltd is 40.0.

What is the Book Value of Star Cement Ltd?

The Book Value of Star Cement Ltd is 67.9.

What is the Dividend Yield of Star Cement Ltd?

The Dividend Yield of Star Cement Ltd is 0.00 %.

What is the ROCE of Star Cement Ltd?

The ROCE of Star Cement Ltd is 16.5 %.

What is the ROE of Star Cement Ltd?

The ROE of Star Cement Ltd is 11.5 %.

What is the Face Value of Star Cement Ltd?

The Face Value of Star Cement Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Star Cement Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE