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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Star Cement Ltd

About the Company - Star Cement Ltd

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, 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

Star Cement Ltd. Share Price Update

Share PriceValue
Today₹195.60
Previous Day₹195.90

Basic Stock Data of Star Cement Ltd

Market Cap 8,304 Cr.
Current Price 205
High / Low220/103
Stock P/E27.4
Book Value 63.1
Dividend Yield0.00 %
ROCE16.8 %
ROE10.8 %
Face Value 1.00

Data Source: screener.in

Competitors of Star Cement Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Burnpur Cement Ltd 59.7 Cr. 6.938.87/3.55 45.30.00 %2.67 %% 10.0
Andhra Cements Ltd 1,083 Cr. 118159/4.8812.2 36.50.00 %15.4 %% 10.0
Orient Cement Ltd 5,014 Cr. 245294/10528.8 80.30.60 %12.0 %7.85 % 1.00
Shree Cement Ltd 95,636 Cr. 26,50630,738/22,60140.6 5,3130.38 %8.99 %7.45 % 10.0
Rain Industries Ltd 6,895 Cr. 205220/14023.4 2530.47 %17.1 %19.8 % 2.00
Industry Average33.34 Cr120.192184.020.29%11.23%7.02%6.6

Star Cement Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales402423603511407555749665594620830760585
Expenses323339498418335487636541525511664631487
Operating Profit79841049372681131247010816612999
OPM %20%20%17%18%18%12%15%19%12%18%20%17%17%
Other Income7-57889791414121396
Interest2222722333123
Depreciation21212826293235303234353236
Profit before tax6348374444185105498314310465
Tax %2%98%2%8%-5%-8%-4%36%37%36%33%10%38%
Net Profit6108168474488683153969341
EPS in Rs1.46-0.042.071.651.131.082.191.670.771.312.382.311.01

Star Cement Ltd Quarterly Chart

Star Cement Ltd Profit & Loss

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales4811,0281,4301,7151,5281,6151,8311,8431,7202,2222,7052,795
Expenses3627959941,3161,1191,0931,3821,4491,3871,8772,2362,293
Operating Profit119233436399408521449394333345468502
OPM %25%23%31%23%27%32%25%21%19%16%17%18%
Other Income231124529-36335239
Interest2783878378521497131010
Depreciation451572241711181211069390122131137
Profit before tax49-5126145215353335322199244380394
Tax %12%28%4%4%6%5%9%11%6%-1%35%
Net Profit43-3121139195336305287187247248283
EPS in Rs10.24-1.0028.303.204.647.897.136.924.546.116.137.01
Dividend Payout %0%-250%28%0%0%13%0%14%0%0%0%

Star Cement Ltd Profit & Loss Yearly Chart

Star Cement Ltd Growth

Compounded Sales Growth
10 Years:19%
5 Years:11%
3 Years:14%
TTM:8%
Compounded Profit Growth
10 Years:19%
5 Years:-6%
3 Years:-5%
TTM:27%
Stock Price CAGR
10 Years:%
5 Years:17%
3 Years:28%
1 Year:91%
Return on Equity
10 Years:14%
5 Years:14%
3 Years:12%
Last Year:11%

Star Cement Ltd Balance Sheet

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital424242424242424141404040
Reserves8178018791,0131,1041,4341,6821,8162,0332,1282,3762,509
Borrowings830964880940801432741318163532
Other Liabilities288309388471534597499488470561680654
Total Liabilities1,9782,1162,1902,4662,4802,5062,2972,3582,5622,7453,1313,235
Fixed Assets1,1301,1431,0289198637857226968239238911,031
CWIP129994149553674238127109551813
Investments22221122216717399
Other Assets7178731,1191,4961,5611,6841,4981,4231,6111,5451,5171,292
Total Assets1,9782,1162,1902,4662,4802,5062,2972,3582,5622,7453,1313,235

Star Cement Ltd Reserves and Borrowings Chart

Star Cement Ltd Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -7423326297300421616483350417375
Cash from Investing Activity -316-114-41-79-89-25-193-136-333-289-272
Cash from Financing Activity 392-132-210-14-218-393-348-201-3-17610
Net Cash Flow2-14114-727614614-47114

Star Cement Ltd Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days6344799633332924282114
Inventory Days590378174221173356232233212124218
Days Payable1581761221481012281058789135165
Cash Conversion Cycle4952471301681051611561711511068
Working Capital Days196576811220819211996913125
ROCE %4%12%12%14%20%18%17%13%12%17%

Star Cement Ltd Financial Efficiency Indicators Chart

Star Cement Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters67.11%66.21%66.89%67.06%67.33%67.37%67.42%67.03%67.12%66.76%66.55%66.48%
FIIs0.07%0.11%0.14%0.18%0.20%0.28%0.40%0.53%0.63%0.69%0.77%1.05%
DIIs7.93%7.89%6.50%6.33%6.15%6.14%6.15%6.15%6.15%6.23%6.08%6.02%
Public24.89%25.79%26.47%26.43%26.32%26.21%26.03%26.29%26.10%26.33%26.59%26.43%
No. of Shareholders34,66437,02651,44452,24253,96952,53950,30445,05442,37343,86652,00154,130

Star Cement Ltd Shareholding Pattern Chart

No. of Star Cement Ltd Shareholders

Burnpur Cement Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Small Cap Fund139924401.04246.83
SBI Flexi Cap Fund98352270.88173.49
SBI Long Term Advantage Fund - Series VI4011902.617.08
Motilal Oswal Nifty Microcap 250 Index Fund929430.261.64
ICICI Prudential S&P BSE 500 ETF12720.010.02
HDFC S&P BSE 500 ETF500.010
HDFC S&P BSE 500 Index Fund2390.010

Star Cement Ltd ROCE Trend

Star Cement Ltd EPS Trend

Star Cement Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)6.136.044.546.857.13
Diluted EPS (Rs.)6.136.044.546.857.13
Cash EPS (Rs.)9.379.116.729.229.79
Book Value[Excl.RevalReserv]/Share (Rs.)59.7853.6550.2946.7342.74
Book Value[Incl.RevalReserv]/Share (Rs.)59.7853.6550.2946.7342.74
Revenue From Operations / Share (Rs.)66.9254.9741.7044.7143.68
PBDIT / Share (Rs.)12.889.378.7510.2810.84
PBIT / Share (Rs.)9.636.366.578.028.32
PBT / Share (Rs.)9.396.034.837.807.98
Net Profit / Share (Rs.)6.136.114.546.977.27
NP After MI And SOA / Share (Rs.)6.136.114.546.927.13
PBDIT Margin (%)19.2417.0420.9722.9824.82
PBIT Margin (%)14.3911.5615.7417.9419.05
PBT Margin (%)14.0310.9611.5817.4318.27
Net Profit Margin (%)9.1511.1010.8815.5816.65
NP After MI And SOA Margin (%)9.1511.1010.8815.4816.31
Return on Networth / Equity (%)10.2411.389.0215.3717.33
Return on Capital Employeed (%)14.9510.9712.1916.1018.28
Return On Assets (%)7.908.987.3012.1013.00
Total Debt / Equity (X)0.010.000.010.010.02
Asset Turnover Ratio (%)0.920.970.780.900.83
Current Ratio (X)1.892.813.593.482.96
Quick Ratio (X)1.182.322.902.642.25
Inventory Turnover Ratio (X)2.265.773.853.463.12
Dividend Payout Ratio (NP) (%)0.000.000.0014.440.00
Dividend Payout Ratio (CP) (%)0.000.000.0010.890.00
Earning Retention Ratio (%)0.000.000.0085.560.00
Cash Earning Retention Ratio (%)0.000.000.0089.110.00
Interest Coverage Ratio (X)53.6828.3851.6345.3931.62
Interest Coverage Ratio (Post Tax) (X)26.5419.5037.0231.7722.21
Enterprise Value (Cr.)4233.093242.163527.032616.084048.20
EV / Net Operating Revenue (X)1.561.462.051.422.21
EV / EBITDA (X)8.138.569.786.178.90
MarketCap / Net Operating Revenue (X)1.671.632.331.532.26
Retention Ratios (%)0.000.000.0085.550.00
Price / BV (X)1.871.671.931.522.40
Price / Net Operating Revenue (X)1.671.632.331.532.26
EarningsYield0.050.060.040.100.07

Star Cement Ltd Profitability Ratios (%)

Star Cement Ltd Liquidity Ratios

Star Cement Ltd Liquidity Ratios (%)

Star Cement Ltd Interest Coverage Ratios (X)

Star Cement Ltd Valuation Ratios

Fair Value / Intrinsic Value of Star Cement Ltd

Fair Value: ₹190.46

The stock is overvalued by 7.09% compared to the current price ₹205

*Investments are subject to market risks

Strength and Weakness of Star Cement Ltd

StrengthWeakness
  1. The company has higher reserves (1,549.33 cr) compared to borrowings (419.58 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (41.25 cr) and profit (229.75 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 7.78 and average Dividend Yield of 15.74%.
  2. The stock has a low average ROCE of 12.64%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 108.64, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 169.27, which may not be favorable.

Should I Buy Star Cement Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Star Cement Ltd:
    1. Net Profit Margin: 9.15% (Higher values are generally favorable)
      • 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: 14.95% (Industry Average ROCE: 9.72%)
      • 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. Interest Coverage Ratio (Post Tax): 26.54 (Higher values, preferably > 2, are recommended)
      • 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.
    4. Quick Ratio: 1.18 (Higher values, preferably > 1, are recommended)
      • 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.
    5. ✓ Stock P/E: 27.4 (Industry average Stock P/E: 45.18)
      • 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.
    6. ✓ Total Debt / Equity: 0.01 (Lower values, preferably < 1, are preferred)
      • 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.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

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