Star Cement
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Star Cement is navigating a challenging short-term environment marked by monsoon-related disruptions and cost inflation, yet management maintains a constructive outlook for the second half of FY27. The company's strategic focus on geographical diversification, particularly through its Rajasthan expansion, is expected to enhance its competitive position and reduce reliance on the Northeast market. Despite recent volume headwinds and higher fuel costs impacting Q1 results, management anticipates a recovery in demand and volume growth, projecting 10-12% cement volume growth for FY27. Vista's financial outlook reflects this optimism, with improving margins expected as logistics efficiencies materialize and pricing power strengthens. The cement industry is poised for steady growth, supported by ongoing infrastructure projects and a favorable macro environment, which bodes well for Star Cement's long-term trajectory. Key opportunities include the successful execution of expansion projects and the introduction of new non-cement products, while watchpoints include potential delays in the Rajasthan project and continued cost pressures. Overall, Star Cement's strategic initiatives and market positioning support Vista's forecast of a 15.87% expected upside, with a 12-month target price of INR 234.01
Why We Like This Stock
- Geographical diversification through the Rajasthan expansion is expected to enhance market reach and reduce reliance on the Northeast
- Management projects a recovery in demand with anticipated cement volume growth of 10-12% for FY27
- Improving pricing power and logistics efficiencies are expected to bolster margins in the medium term
Things To Watch Out For
- Monsoon-related disruptions and cost inflation have negatively impacted short-term volume and profitability
- Potential delays in the Rajasthan project could hinder growth targets and operational efficiency
- Continued volatility in fuel prices poses a risk to margin stability and overall cost management
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,911 | 3,163 | 3,776 | 3,660 | 4,087 |
| Profit Before Tax (Cr.) | 425 | 226 | 543 | 487 | 536 |
| PBT Margin | 14.6% | 7.1% | 1438.0% | 13.3% | 13.1% |
| Net Profit (Cr.) | 346 | 166 | 438 | 392 | 428 |
| Earnings Per Share | 8.6 | 4.1 | 10.9 | 9.6 | 10.6 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 260 | 11-Aug-2026 |
| HDFC Securities | ▲ Buy | 290 | 27-May-2026 |
| ICICI Securities | ▲ Buy | 251 | 11-Aug-2026 |
| JMFinancials | ▲ Buy | 295 | 27-May-2026 |
Company Overview
Show Company Profile
Star Cement Limited manufactures and supplies cement and clinker products in India and internationally. The company offers ordinary Portland, Portland pozzolana, and antirust and weather shield products under the Star Cement brand. It also generates power, as well as provides fleet services. 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.