BSE:540575

Stock Analysis Report

Executive Summary

Star Cement Limited manufactures and sells cement and clinker products in north eastern and eastern states of India.


Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Star Cement's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 540575's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.9%

540575

-1.5%

IN Basic Materials

-2.2%

IN Market


1 Year Return

-29.5%

540575

-30.0%

IN Basic Materials

-30.7%

IN Market

Return vs Industry: 540575 matched the Indian Basic Materials industry which returned -30% over the past year.

Return vs Market: 540575 exceeded the Indian Market which returned -30.7% over the past year.


Shareholder returns

540575IndustryMarket
7 Day-3.9%-1.5%-2.2%
30 Day-18.5%-29.4%-25.9%
90 Day-23.0%-28.6%-30.5%
1 Year-28.7%-29.5%-29.6%-30.0%-29.3%-30.7%
3 Yearn/a-30.4%-31.6%-18.8%-23.3%
5 Yearn/a-7.4%-10.2%-8.7%-13.6%

Price Volatility Vs. Market

How volatile is Star Cement's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Star Cement undervalued compared to its fair value and its price relative to the market?

10.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 540575 (₹70.1) is trading above our estimate of fair value (₹58.77)

Significantly Below Fair Value: 540575 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 540575 is good value based on its PE Ratio (10.1x) compared to the Basic Materials industry average (10.3x).

PE vs Market: 540575 is poor value based on its PE Ratio (10.1x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: 540575 is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: 540575 is overvalued based on its PB Ratio (1.6x) compared to the IN Basic Materials industry average (0.6x).


Next Steps

Future Growth

How is Star Cement forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 540575's forecast earnings growth (7.1% per year) is above the savings rate (6.5%).

Earnings vs Market: 540575's earnings (7.1% per year) are forecast to grow slower than the Indian market (19.2% per year).

High Growth Earnings: 540575's earnings are forecast to grow, but not significantly.

Revenue vs Market: 540575's revenue (10.4% per year) is forecast to grow faster than the Indian market (8.8% per year).

High Growth Revenue: 540575's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 540575's Return on Equity is forecast to be low in 3 years time (14.6%).


Next Steps

Past Performance

How has Star Cement performed over the past 5 years?

21.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540575 has high quality earnings.

Growing Profit Margin: 540575's current net profit margins (15.8%) are lower than last year (17.3%).


Past Earnings Growth Analysis

Earnings Trend: 540575's earnings have grown significantly by 21.7% per year over the past 5 years.

Accelerating Growth: 540575's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 540575 had negative earnings growth (-8.6%) over the past year, making it difficult to compare to the Basic Materials industry average (21.9%).


Return on Equity

High ROE: 540575's Return on Equity (15.2%) is considered low.


Next Steps

Financial Health

How is Star Cement's financial position?


Financial Position Analysis

Short Term Liabilities: 540575's short term assets (₹11.3B) exceed its short term liabilities (₹3.3B).

Long Term Liabilities: 540575's short term assets (₹11.3B) exceed its long term liabilities (₹1.2B).


Debt to Equity History and Analysis

Debt Level: 540575's debt to equity ratio (1.2%) is considered satisfactory.

Reducing Debt: 540575's debt to equity ratio has reduced from 94.9% to 1.2% over the past 5 years.

Debt Coverage: 540575's debt is well covered by operating cash flow (2363.4%).

Interest Coverage: 540575's interest payments on its debt are well covered by EBIT (92.7x coverage).


Balance Sheet

Inventory Level: 540575 has a high level of physical assets or inventory.

Debt Coverage by Assets: 540575's debt is covered by short term assets (assets are 47.9x debt).


Next Steps

Dividend

What is Star Cement's current dividend yield, its reliability and sustainability?

1.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 540575's dividend (1.43%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: 540575's dividend (1.43%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


Stability and Growth of Payments

Stable Dividend: 540575 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 540575 has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 540575's dividends in 3 years are forecast to be well covered by earnings (21.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Sanjay Gupta (48yo)

17.08s

Tenure

₹13,709,000

Compensation

Mr. Sanjay Kumar Gupta has been the Chief Executive Officer of Star Ferro and Cement Limited since September 20, 2014. Mr. Gupta has been the Chief Executive Officer at Star Cement Limited since March 2003 ...


CEO Compensation Analysis

Compensation vs Market: Sanjay's total compensation ($USD179.86K) is below average for companies of similar size in the Indian market ($USD347.76K).

Compensation vs Earnings: Sanjay's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sajjan Bhajanka
Chairman & MDno data₹19.80m11.7% 3.4b
Sanjay Gupta
Chief Executive Officer17.08yrs₹13.71m0.0010% 293.6k
Rajendra Chamaria
Vice Chairman & MDno data₹23.70m10.58% 3.0b
Sanjay Agarwal
MD & Director17.42yrs₹19.80m4.13% 1.2b
Manoj Agarwal
Chief Financial Officer2.42yrs₹6.48m0.0010% 296.5k
Debabrata Thakurta
Compliance Officer & Company Secretary2.67yrs₹2.31mno data
Jyoti Agarwal
President of Sales & Marketingno datano datano data
Sachin Chamaria
Executive Director of Business Developmentno datano datano data
Rahul Chamaria
Executive Director of Technicalno datano datano data
Prakash Panda
Assistant Vice President of Human Resource & Administrationno datano datano data

2.7yrs

Average Tenure

50yo

Average Age

Experienced Management: 540575's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sajjan Bhajanka
Chairman & MDno data₹19.80m11.7% 3.4b
Rajendra Chamaria
Vice Chairman & MDno data₹23.70m10.58% 3.0b
Sanjay Agarwal
MD & Director17.42yrs₹19.80m4.13% 1.2b
Prem Bhajanka
Non-Executive Director17.42yrsno data9.15% 2.6b
Pankaj Kejriwal
Non-Executive Non-Independent Director17.08yrsno data0.025% 7.2m
Plistina Dkhar
Independent Director3yrs₹15.00k0.00024% 69.1k
Santanu Ray
Independent Director3yrs₹90.00kno data
Amit Deb
Independent Directorno datano datano data
Ibaridor War
Independent Director3yrs₹15.00kno data
Pramod Shah
Independent Director2.42yrs₹130.00kno data

3.0yrs

Average Tenure

61yo

Average Age

Experienced Board: 540575's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 540575 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Star Cement Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Star Cement Limited
  • Ticker: 540575
  • Exchange: BSE
  • Founded: 2001
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: ₹28.788b
  • Shares outstanding: 412.43m
  • Website: https://www.starcement.co.in

Location

  • Star Cement Limited
  • Satyam Towers
  • 1st Floor
  • Kolkata
  • West Bengal
  • 700027
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540575BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2017
STARCEMENTNSEI (National Stock Exchange of India)YesEquity SharesININRJun 2017

Biography

Star Cement Limited manufactures and sells cement and clinker products in north eastern and eastern states of India. It operates through Cement and Power segments. The company offers ordinary Portland, Portland pozzolana, Portland slag, and antirust cement products under the Star Cement brand. It also generates power. The company markets its products through a network of dealers and retailers. It also exports its products to Nepal and Bhutan. The company was formerly known as Cement Manufacturing Company Limited and changed its name to Star Cement Limited in June 2016. The company was founded in 2001 and is based in Kolkata, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 13:03
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.