Star Cement Limited

NSEI:STARCEMENT Stock Report

Market Cap: ₹84.2b

Star Cement Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 (₹208.59) is trading below our estimate of fair value (₹540.78)

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?

Other financial metrics that can be useful for relative valuation.

STARCEMENT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.9x
Enterprise Value/EBITDA11.5x
PEG Ratio1.4x

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 Average35.3x
500335 Birla
24.2x27.2%₹95.3b
500380 JK Lakshmi Cement
20.7x16.8%₹96.2b
500338 Prism Johnson
62x27.3%₹96.4b
ORIENTCEM Orient Cement
34.4x19.8%₹60.0b
STARCEMENT Star Cement
36.1x25.0%₹84.2b

Price-To-Earnings vs Peers: STARCEMENT is expensive based on its Price-To-Earnings Ratio (36.1x) compared to the peer average (35.3x).


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
Industry Avg.n/a7.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: STARCEMENT is expensive based on its Price-To-Earnings Ratio (36.1x) compared to the Indian Basic Materials industry average (32.8x).


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 Ratio35x

Price-To-Earnings vs Fair Ratio: STARCEMENT is expensive based on its Price-To-Earnings Ratio (36.1x) compared to the estimated Fair Price-To-Earnings Ratio (35x).


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₹208.59
₹227.20
+8.9%
23.9%₹300.00₹94.00n/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₹74.00n/a8
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
Oct ’23₹105.90
₹101.50
-4.2%
17.1%₹118.00₹64.00₹152.956

Analyst Forecast: Target price is less than 20% higher than the current share price.


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