Star Cement Limited
Star Cement Limited Fundamental Analysis
Star Cement Limited (STARCEMENT.NS) shows moderate financial fundamentals with a PE ratio of 23.83, profit margin of 10.09%, and ROE of 12.81%. The company generates $36.6B in annual revenue with moderate year-over-year growth of 9.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze STARCEMENT.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakSTARCEMENT.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSTARCEMENT.NS trades at attractive valuation levels.
Growth Score
ModerateSTARCEMENT.NS shows steady but slowing expansion.
Financial Health Score
ExcellentSTARCEMENT.NS maintains a strong and stable balance sheet.
Profitability Score
WeakSTARCEMENT.NS struggles to sustain strong margins.
Key Financial Metrics
Is STARCEMENT.NS Expensive or Cheap?
P/E Ratio
STARCEMENT.NS trades at 23.83 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, STARCEMENT.NS's PEG of 1.10 indicates fair valuation.
Price to Book
The market values Star Cement Limited at 2.92 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.28 times EBITDA. This is generally considered low.
How Well Does STARCEMENT.NS Make Money?
Net Profit Margin
For every $100 in sales, Star Cement Limited keeps $10.09 as profit after all expenses.
Operating Margin
Core operations generate 14.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.81 in profit for every $100 of shareholder equity.
ROA
Star Cement Limited generates $8.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Star Cement Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Star Cement Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
STARCEMENT.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How STARCEMENT.NS Stacks Against Its Sector Peers
| Metric | STARCEMENT.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.83 | 27.18 | Better (Cheaper) |
| ROE | 12.81% | 860.00% | Weak |
| Net Margin | 10.09% | -121084.00% (disorted) | Strong |
| Debt/Equity | 0.21 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 1.45 | 4.81 | Neutral |
| ROA | 8.43% | -7173.00% (disorted) | Weak |
STARCEMENT.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Star Cement Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
77.17%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-39.01%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-36.74%
Industry Style: Cyclical, Commodity, Value
Declining