Star Cement
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Star Cement Limited is navigating a complex landscape characterized by both growth opportunities and near-term challenges. Management's recent commentary highlights a strategic focus on capacity expansion, particularly with the commissioning of a new 4 MTPA grinding plant, which is expected to enhance operational efficiency and support long-term revenue growth. However, the company faces immediate headwinds from severe weather disruptions and rising fuel costs, which have pressured margins and led to a cautious revenue outlook. Vista's forecast reflects these dynamics, anticipating revenue contraction in the near term while maintaining a long-term growth trajectory supported by strategic geographic diversification and premiumization efforts. The cement industry is currently expanding, bolstered by increasing infrastructure spending and improving pricing power, yet Star Cement's ability to capitalize on these trends will depend on effective execution of its growth strategy and management of cost pressures. Over the next 12-24 months, key opportunities include leveraging new capacity and enhancing supply chain resilience, while watchpoints include potential regulatory challenges and fluctuations in raw material costs
Why We Like This Stock
- Strategic capacity expansion with the new 4 MTPA grinding plant is expected to enhance operational efficiency
- Management's focus on geographic diversification aims to reduce reliance on the Northeast market
- Improving pricing power in the cement industry supports potential revenue recovery
Things To Watch Out For
- Severe weather disruptions and rising fuel costs are pressuring margins and revenue outlook
- Short-term volume growth has been revised downward due to external factors, impacting earnings
- Regulatory challenges and fluctuations in raw material costs could hinder profitability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,911 | 3,163 | 3,776 | 3,657 | 3,913 |
| Profit Before Tax (Cr.) | 425 | 226 | 543 | 489 | 524 |
| PBT Margin | 14.6% | 7.1% | 14.4% | 13.4% | 13.4% |
| Net Profit (Cr.) | 346 | 166 | 438 | 393 | 419 |
| Earnings Per Share | 8.6 | 4.1 | 10.9 | 9.7 | 10.4 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Anand Rathi | ▲ Buy | 265 | 11-Aug-2026 |
| Axis Securities | ▲ Buy | 260 | 11-Aug-2026 |
| ICICI Securities | ▲ Buy | 251 | 11-Aug-2026 |
| HDFC Securities | ▲ Buy | 290 | 27-May-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.