Star Cement Limited

NSEI:STARCEMENT Stock Report

Market Cap: ₹71.5b

Star Cement Valuation

Is STARCEMENT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of STARCEMENT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: STARCEMENT (₹176.9) is trading below our estimate of fair value (₹415.1)

Significantly Below Fair Value: STARCEMENT is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for STARCEMENT?

Key metric: As STARCEMENT is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for STARCEMENT. This is calculated by dividing STARCEMENT's market cap by their current earnings.
What is STARCEMENT's PE Ratio?
PE Ratio36.1x
Earnings₹1.98b
Market Cap₹71.46b

Price to Earnings Ratio vs Peers

How does STARCEMENT's PE Ratio compare to its peers?

The above table shows the PE ratio for STARCEMENT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34.3x
500335 Birla
28.6x36.4%₹88.6b
ORIENTCEM Orient Cement
45.6x33.3%₹69.4b
500380 JK Lakshmi Cement
25.8x25.2%₹92.0b
500292 HeidelbergCement India
37.4x30.1%₹48.9b
STARCEMENT Star Cement
36.1x35.8%₹71.5b

Price-To-Earnings vs Peers: STARCEMENT is expensive based on its Price-To-Earnings Ratio (36.1x) compared to the peer average (34.3x).

Price to Earnings Ratio vs Industry

How does STARCEMENT's PE Ratio compare vs other companies in the IN Basic Materials Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
STARCEMENT 36.1xIndustry Avg. 37.5xNo. of Companies7PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: STARCEMENT is good value based on its Price-To-Earnings Ratio (36.1x) compared to the Indian Basic Materials industry average (37.5x).

Price to Earnings Ratio vs Fair Ratio

What is STARCEMENT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

STARCEMENT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.1x
Fair PE Ratio38.7x

Price-To-Earnings vs Fair Ratio: STARCEMENT is good value based on its Price-To-Earnings Ratio (36.1x) compared to the estimated Fair Price-To-Earnings Ratio (38.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst STARCEMENT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹176.90
₹217.18
+22.8%
19.7%₹257.00₹107.00n/a11
Nov ’25₹211.83
₹227.50
+7.4%
22.5%₹300.00₹107.00n/a10
Oct ’25₹213.67
₹227.20
+6.3%
23.9%₹300.00₹94.00n/a10
Sep ’25₹228.24
₹227.20
-0.5%
23.9%₹300.00₹94.00n/a10
Aug ’25₹211.56
₹231.22
+9.3%
25.1%₹300.00₹94.00n/a9
Jul ’25₹211.62
₹231.22
+9.3%
25.1%₹300.00₹94.00n/a9
Jun ’25₹212.60
₹230.67
+8.5%
25.1%₹300.00₹94.00n/a9
May ’25₹237.20
₹211.67
-10.8%
23.8%₹271.00₹94.00n/a9
Apr ’25₹230.80
₹197.38
-14.5%
23.3%₹250.00₹94.00n/a8
Mar ’25₹209.40
₹197.38
-5.7%
23.3%₹250.00₹94.00n/a8
Feb ’25₹186.30
₹167.33
-10.2%
17.8%₹190.00₹89.00n/a9
Jan ’25₹176.75
₹165.67
-6.3%
20.6%₹190.00₹74.00n/a9
Dec ’24₹163.95
₹162.00
-1.2%
21.4%₹188.00₹74.00n/a8
Nov ’24₹153.45
₹150.38
-2.0%
20.7%₹185.00₹74.00₹211.838
Oct ’24₹152.95
₹148.75
-2.7%
20.9%₹185.00₹74.00₹213.678
Sep ’24₹161.15
₹148.75
-7.7%
20.9%₹185.00₹74.00₹228.248
Aug ’24₹143.80
₹133.25
-7.3%
18.9%₹160.00₹74.00₹211.568
Jul ’24₹140.90
₹131.13
-6.9%
21.0%₹160.00₹68.00₹211.628
Jun ’24₹133.90
₹131.13
-2.1%
21.0%₹160.00₹68.00₹212.608
May ’24₹116.50
₹118.43
+1.7%
18.5%₹138.00₹68.00₹237.207
Apr ’24₹111.85
₹119.00
+6.4%
20.4%₹138.00₹61.00₹230.807
Mar ’24₹110.25
₹118.00
+7.0%
20.5%₹138.00₹61.00₹209.407
Feb ’24₹107.50
₹108.33
+0.8%
21.2%₹135.00₹61.00₹186.306
Jan ’24₹112.45
₹108.33
-3.7%
21.2%₹135.00₹61.00₹176.756
Dec ’23₹106.40
₹108.33
+1.8%
21.2%₹135.00₹61.00₹163.956
Nov ’23₹106.20
₹101.00
-4.9%
18.3%₹118.00₹61.00₹153.456

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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