Volume growth to return; Siliguri plant to boost sales further Post imposition of nationwide lockdown, the plant utilisation and sales volume declined almost 90% in April. However, May and June witnessed a healthy pick-up in volume offtake, with June seeing sales volume similar to levels reported last year. At present, rural demand continues to remain strong. We also expect a ramp-up in infrastructure along the China border soon, going forward. This will drive cement demand in the Arunachal, Sikkim area. Further, commissioning of the Siliguri plant in FY21E should...

Promoters pledged 0.21% of shares in last quarter. Total pledge stands at 1.33% of promoter holdings

Star Cement Ltd.

28 Jun 2020

224.00

-3.14%

Star Cement

Buy: Star Cement Ltd.

Yes Securities

Improvement in realizations for the company (NSR +2.5% y/y)wasmajorlyoffsetbyincreaseinenergycostsdueto higherrelianceonimportedcoal(visvisprocurementof lowercostdomesticcoallastyear).Accordingly,EBITDA/te...

Star Cement Ltd. has gained 29.49% in the last 6 Months

Star Cement Ltd.

14 Feb 2020

224.00

-3.14%

Star Cement

Buy: Star Cement Ltd.

Recommendation Target

ICICI Securities Limited

Volume growth returns; Siliguri plant to boost sales further While offtake in H1FY20 remained weak owing to weak demand and heavy monsoons, the trend seems to have reversed in the company's major market from Q3FY20. A pick-up in construction activity post floods in the north east region and commissioning of the Siliguri plant by Q1FY21E, should drive sales volumes. While the management expects the North East region to end the year at ~8-9% growth and the eastern markets at 5-6% growth, FY21E volume growth for the company is expected to be strong....

Star Cement Ltd. has an average target of 254.50 from 6 brokers.

Star Cement Ltd.

07 Feb 2020

224.00

-3.14%

Star Cement (3QFY20): Volume momentum picking up. Maintain BUY

Buy: Star Cement Ltd.

HDFC Securities

We estimate Star to deliver consol EBITDA CAGR of 8% during FY19-22E (in-line consensus). We continue to like Star for its leadership positioning in the lucrative NE region, which drives its industry leading op margin and healthy return ratios. Further, its net cash position currently boosts its expansion capability. Thus, we value it at 10x EV/EBITDA (15% premium to its 5-yr mean), leading to TP of Rs 135 (10x Sep'21E EBITDA). We maintain BUY on the stock. We maintain BUY on Star Cement with a TP of Rs 135 (10x Sep21E consol EBITDA), implying EV of USD 176/MT.

Promoters pledged 0.21% of shares in last quarter. Total pledge stands at 1.33% of promoter holdings

Star Cement Ltd.

08 Nov 2019

224.00

-3.14%

Star Cement (2QFY20): Demand recovers! Maintain BUY

Buy: Star Cement Ltd.

HDFC Securities

We continue to like Star for its leadership positioning in the lucrative NE region, which will further enhance as Star ramps-up clinker capacity in NE region. Star's superior op margin should gain from increased local coal availability and cost reduction from upcoming WHRS. Star currently trades at a mere 7.1/7.1x FY21/22E EBITDA (EV of USD 125/MT). Maintain BUY with a revised TP of Rs 135. We maintain BUY on Star Cement with a TP of Rs 135 (10x Sep21E consol EBITDA), implying EV of USD 176/MT

Star Cement Ltd. has an average target of 254.50 from 6 brokers.

Star Cement Ltd.

02 Aug 2019

224.00

-3.14%

Star Cement

Hold: Star Cement Ltd.

Target

ICICI Securities Limited

For Q1FY20, Star Cement reported a weak set of numbers led by volume decline. Total revenues for the quarter registered 9.7% YoY decline to | 468 crore (vs. I-direct estimate of | 509 crore). Volumes during the quarter stood at 0.73 MT (vs. I-direct estimates of 0.8 MT), down 9.5% YoY due to lower clinker sales. Realisations remained flat YoY at | 6,414/t (broadly in line with I-direct estimates of | 6,477/t). Production costs also remained stable YoY leading to stable EBITDA/t of | 1,637/t. However, EBITDA declined 9.5% YoY to | 119 crore (vs. I-direct estimate of | 124 crore), due to lower volumes....

Star Cement Ltd. is trading above all available SMAs

Star Cement Ltd.

18 Mar 2019

224.00

-3.14%

Star Cement

Hold: Star Cement Ltd.

Target

ICICI Securities Limited

Star Cement with double digit growth to outpace industry Backed by various infrastructure projects and low cost housing scheme, NER is expected to grow ~8-9% in coming years. Out of total installed capacity of ~ 11 MT in the region, Star Cement is one of the dominant players with a capacity of 3.7 MT. Out of the total installed capacity in the region, the top three players namely Star Cement (3.7 MT), Dalmia Cement (2.5 MT) and TopCem (1 MT), control ~ 65% of capacity. Most players in the region except for Star Cement and Dalmia, operate at high capacity...

Star Cement Ltd. has gained 29.49% in the last 6 Months

Is Star Cement Ltd. worth buying?

138 Votes:

Buy 76.81%

Sell 13.77%

Hold 9.42%

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