Cement industry – India has achieved top position as 2nd largest producer of cement at worldwide level wth production capacity of more than 8% of at world level. This shows genuine demand to fulfill requirement of cement at global level. The infrastructure and construction segment in India will see a huge growth which is projected to increase demand. The governement has created initiatives for growth of smart cities which has shown development. The use of cement in India is increase at huge speed, the rural housing sector capturing high share in cement. The development in industrial sector has seen huge demand which shows wide ecenomy of country.
The easy availability of important raw materials such as limestone and coal encourages the development of cement industry. This assures genuine supply chain and minimizes production expenses, improving the competion in cement segment. In past few years, the cement industry has seen huge growth due to rising demand of housing sector, amazing infrastructure projects such as developments of roads, airports, railways, metros, highways. The cement industry has shown projected increment of 5 to 6.5% CAGR in FY-25 and FY-26. The demand of cement from housing sector is projected to be moderate at around 4 to 5% over next 3 fiscal years while requirement in infrastructure segment will rise in future.
The demand of cement in East India is forecasted to increase with a CAGR of 9% between 2024 to 2026. The highest cement is consumed in Bihar and West Bengal in eastern region with 1/4th of region’s total demand at 23 million tonnes. The demand of cement in Bihar has shown projected increment of 1% year-on-year. Moreover, the infrastruture in these states is rapidly developing which huge demand in future. The total demand of cement in North East region was 14 million tonnes in FY 23-24 against 13 million tonnes in FY 22-23. The Indian government gives priority to North-East due to its amazing location.
The government has launched many initiatives to support better education, infrastruture, health, and industrialization. The purpose of these initiatives is to bring development in these regions to increase infrastrucure and socio-economic growth. The Ministry of Road Transport and Highways has played key role in improving road network across North Eastern Region. In past 9 years from 2014 to 2023, national highway has been developed worth Rs 41,459 crores with road network of 4950 Km. In this article, you will learn interesting information of business of Stare Cements Ltd, price forecast, promoter, revenue, net profit, shareholding pattern, market cap, ROCE, ROE.
Star Cements Ltd – Key Points
Name of promoter
Sajjan Bhajanka
Industry
Building materials
Established
2001
Headquarters
Kolkatta, West Bengal
% market share in North-East India
27
Retail secondary sales dealer
9000
Social media users of Star Cement
5.92 crore
Star Cements Ltd – Statistics
Market cap
Rs 8,138 crores
ROCE
16.5%
ROE
11.5%
Cement production capacity FY 23-24
44.45 lakhs
Grinding capacity on 31st March, 2024 MTPA
7.67
Cement sales by volume FY 23-24
44.04 Lakh Tons
Clinker production FY 23-24
28.05 Lakh Tons
About Star Cements Ltd
The manufacturing plant of company is developed in 200 hectares. the company manages a combined plant for production of cement and clinker and one clinker plant which is subsidiary located in Lumshnong (Meghalaya). These two plants include 2.8 MTPA of clinker production capacity and 1.67 MTPA of cement production capacity. Along with its subsidiary, the company has 3 standalone cement manufacturing units. The two cement manufacturing units are located in Sonapur near Guhawati and another plant is located in Mohitnagar near Siliguri with a processing capacity of 2.0 MTPA.
On 31st March, 2024, the company along with its subsidiary company had installed capacity of 2.80 MTPA of clinker and 7.67 MTPA of cement. The products portfolio of company includes Portland Pozzolana Cement, Portland Slag Cement, Ordinary Portland Cement (OPC 43-Grade and OPC 53-Grade), premium quality cement (Anti rust and wather proof). These include genral grade and genuine value cement for huge range of construction requirements. The product mix of companys becomes priority for engineers, contractors, customers, and dealers. The Star Cement Ltd is listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) with a market cap of Rs 9385 crores on 31st March, 2024.
On 31st March, 2024, the company ahs a team mebers of 3800+. The average age of employees is 38 years and 45% of employees are working with company for more than 5 years.
The company has shown consistent growth by being attractive attemting to do somethimg new by investing in future. During the process of review, the company made commitment which sustained for longer period of time. The company made investment in manufactuiring of plants ahead as per requirement as one way to discourage potential competition from improving capacity, improving trade business that company has proper production capacity to fulfill uncertainties and developing the base for economies of scale. This was seen in previous financial year when company was involved in unparallel growth clinker and cement capacity.
Star Cement is situated in North-East India, the most challenging market for India. There are many challenges which make market complicated to negotiate. Huge rainfall, lower use of transportation compared to all-India, scattered cement markets across North East India which is faraway from clinker manufacturing plants, fluctuating demands between high, normal, and sub-normal demand seasons. Due to experrienced company has understood that it is not as easy to rise manufacturing capacity with forecasted demand. The company wanted to build right product at right time to increase market share. The company raised production capacity of cement from 5.67 MTPA to 7.67 MTPA in last financial year. The growth in production capacity was performed in North-East India. Once the operations were started, the company attained top position as manufacturer of clinker and cement manufacturer in North-East India.
In past company scaled manufacturing process in well-established factories. This strategy encouraged the company to leverage economies of scale, minimize production expenses, and supply cement across North-East India. The company is making investment in railway tracks in its cement manufacturing units. Due to development of infrastructure company will be able to provide better service in North-East regions during high demands, this will help company to transfport materials inwards and outwards from roads to rails. The company is also buying transport vehicles (trucks) ti incease its supply chain beyond rails. The vehicles are available easily which will boost fast service and competitiveness.
The company is focusing branding and marketing are strengthen company’s image as top leader of best quality cement products.By constantly communicating its key values such as long term sustainability, Star Cement has achieved unique position compared to its competitors. During current year, the purpose of company is to commence 10,000 TPD clinker production capacity in Lumshnong, increase the portion of substitute fuel resource, improve generation of steam from waste heart recovery system. The company increased its secondary channel distribution and improved interaction. In the beginning, non-trade segment was unorganized. The company oraganized it properly by paying attention on non-trade sales increment, acquiring strong client, and market share.
The company has launched applications such as Whatsapp chatbot, starlink, Star Saathi App that supports more than 9000 retail shop owners. The digital campaigns were promoted on social media platforms such as Instagram, Facebook, Youtube to about 5.92 crore social media users in North East India, Bihar, and West Bengal. The company is looking to increase user experience in Star Sathi App to enhance navigation, consistent checking and updating user interface.
Star Cements Ltd – Past journey
The company started its first manufacturing plant in FY 04-05 in Lumshnong, Meghalaya.
In FY 07-08, the company commercialised new manufacturing unit in Lumshnong, Meghalaya.
In FY 10-11, the company increased its production capacity of cement and clinker capacity at Lumshnong.
In FY 12-13, the company started operations of new clinker in Meghalaya with production capacity of 1.8 MTPA. The company also commenced operations of new cement unit with a 2 MTPA production capacity at Sonapur, Guwahati.
In FY 16-17, the company increased production capacity to 1.67 MTPA in Lumshnong, Meghalaya.
In FY 18-19, the company raised production capacity of clinker to 2.8 MTPA in Lumshnong.
In FY 20-21, The company commenced operations of new cement manufacturing unit in Lumshong, Meghalaya.
In FY 22-23, the company started operations of 12.3 MW waste-heat recovery system plant at Lumshnong, Meghalaya.
In FY 23-24, the company started new cement manufacturing unit with production capacity of 2.0 MTPA loacated in Sonapur.
Product portfolio of Star Cements Ltd
Ordinary Portland Cement
OPC 43 – This grade of cement is compatible for constructing projects which needs concrete grades up to M-30 assuring a comptability with several structural needs.
OPC 53 – It provides huge strength and long life for structures, highlighting optimal distribution of particle size and a best quality crystalline structure for better performance.
Portland Pozzolana Cement – It is used for excessive concrete works, plastering, and masonry mortar. It protects against chemical attacks, improves durability, and enhances strength cum vicosity. It does not allow liquid to pass through it easily and better quality of strength.
Anti-Rust Cement – This anti-rust cement is developed through extensive research and it has capacity to provide anti-rust and anti-corrosive properties that strengthen bars, increasing their life and long durability of structures.
Weather Shield Cement – This cement shows development in cement in its creativity providing amazing properties which protects against bad weather. This premium product is developed to assure severe weather conditions, assuring long lasting structural integrity.
Star Cements Ltd – Revenue & Net profit
Particulars
FY-24 (in crores)
Sales
2,911
Expenses
2,353
EBITDA
557
other income
25
interest
13
depreciation
147
Profit before tax (%)
424
-Tax (%)
30%
Net profit
295
EPS in Rs.
7.30
Shareholding pattern
Promoters
66.59%
FIIs
1.52%
DIIs
6.11%
Public
25.77%
Star Cements Ltd – Watch Full Video
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Star Cement Ltd Share Price Target – 2024 to 2040
Year
Minimum price (Rs)
Average price (Rs)
Maximum price (Rs)
2024
201
213
225
2025
231
247
262
2026
268
278
288
2027
295
312
329
2028
330
364
397
2029
403
438
472
2030
476
494
512
2040
2378
2623
2867
Star Cement Ltd Share Price Target – 2024
If market faces bearish sentiments, the minimum projected price is anticipated to reach Rs 201. The average trading price is projected to hit Rs 213 at the mid of the year. If market faces bullish sentiments, the maximum projected price is anticipated to hit Rs225. The company used to consume power requirement from its Lumshnong unit from its wholly owned subsidiary M/S Meghalaya Power Limited (currently merged with Star Cement Ltd) as per long-term purpose to supply power at reasonable rate and due to which it less dependent on State power.
Star Cement Ltd Share Price Target – 2025
If market observes downward trends, the minimum forecasted price is anticipated to hit Rs 231. The average trading price is projected to hit Rs 247 at the mid of the year. If market faces bullish sentiments, the maximum projected price is anticipated to hit Rs 262. The company consumers power reqirements from its Grinding unit located in Guwahati and integrated cement factory located in Lumshnong from Indian Energy Exchange (IEX). The genuine sourcing has not minimized power costs but also developed better quality and dependability. The company is ready to purchase Renewable Power like Solar & Wind from Indian Energy Exchange, the company has shown strong commitment against marketing of renewable resources and minimizing consumption of electricty developed from fossil fuel.
Star Cement Ltd Share Price Target – 2026
If market faces bearish sentiments, the minimum projected price is anticipated to reach Rs 268. The average trading price is projected to hit Rs 278 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is expected to hit Rs 288. The strong part of marketing of Star Cements is dependent on strong dealer networks. The amazing marketing style of company and strong distribution channel has made huge contribution to develop top position in the market. The proper location of company has helped to purchase raw materials at genuine prices.
Star Cement Ltd Share Price Target – 2027
If market experiences downward trends, the minimum forecasted price is expected to hit Rs 295. The average trading price is projected to touch Rs 312 at the mid of the year. If market faces bullish sentiments, the maximum projected price is anticipated to hit Rs 329. The reliance of company on domestic market and focus of business in regional markets can impact growth of company in longer time. The rise in input costs and logistics costs affects the profitability of company. The adverse effects of the environment and other factors may impact the operations of thebusiness.
Star Cement Ltd Share Price Target – 2028
If market observes bearish sentiments, the minimum projected price is anticipated to hit Rs 330. The average trading price is forecasted to hit Rs 364 at the end of the year. If market faces bullish sentiments, the maximum projected price is expected to hit Rs 397. Star Cement made consistent investments in manufacturing plant ahead of its demand. This resulted in increasing market share and widening top positioning in market. The company highlighted next cement manufacturing plant across two new regions. This will develop strong presence in areas immediate to cement consumption markets.
Star Cement Ltd Share Price Target – 2029
If market observes bearish sentiments, the minimum projected price is expected to hit Rs 403. The average trading price is projected to reach Rs 438 at the mid of the year. If market observes bullish sentiments, the maximum projected price is anticipated to reach Rs 472. Star Cement Ltd is largest cement brand in North-East India and it has achieved lot of respect for its best quality. The company is taking energetic steps by scaling production capacity and improving competitiveness. The company has a vision to develop 15 MTPA production capacity in upcoming 5 years.
Star Cement Ltd Share Price Target – 2030
If market observes downward trends, the minimum projected price is anticipated to hit Rs 476. The average trading price is projected to hit Rs 494 at the end of the year. If market faces bullish sentiments, the maximum projected price is anticipated to touch Rs 512. The company aims to deliver the best quality products by achieving huge customer satisfaction and amazing customer support. To consistently develop better products by encouraging innovations and interconnect modern technologies, assure best quality at less costly. To secure and enhance shareholders integrity. To use surplus for betterment of society.
Star Cement Ltd Share Price Target – 2040
If market faces bearish sentiments, the minimum projected price is expected to reach Rs2378. The average trading price is projected to hit Rs 2623 at the end of the year. If market observes bullish sentiments, the maximum projected price is anticipated to reach Rs 2867. The company faces issues in Star Cement was flcutuations in coal quality. The regional coal of Nagaland includes high sulphur with low coal ash. The procurement of coal from Eastern Coalfields was totally different low suplhur with high coal ash. every time there was changes in quality of coal procured due to which end product was notnogenerated constant best quality.
FAQs
Q1) Who is the owner of Star Cement Ltd?
Ans – The owner of Star Cement Ltd is Mr. Sajjan Bhajanka.
Q2) What is the net worth of Star Cement Ltd?
Ans – The net worth of Star Cement Ltd is Rs 8,143 crores.
Q3) What is the 52-week high of Star Cement Ltd?
Ans – The 52-week high of Star Cement Ltd is Rs 256.
Q4) What is the rank of Star Cement Ltd in India?
Ans – The rank of Star Cement is no. 1 in North-East India and is one of the fastest developing cement brand in India.
Q5) Is it good to invest in Star Cement Ltd share?
Ans –Yes, Star Cement Ltd is a good company for long-term investment. The sales of company in FY-13 was Rs 481 crores which has reached to Rs 2,911 crores. The net profit of company in FY-13 was Rs 43 crores which has increased to Rs 295 crores in FY-24.
Q6) Is Star Cement Ltd a debt-free company?
Ans –No, Star Cement Ltd is not a debt-free company. The Long-term borrowing of company is Rs 187 crores and Short-term borrowings of Rs 175 crores in FY-24 against which net profit of company is Rs 295 crores which is sufficient to pay its debt in future.
