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Star Cement Limited (STARCEMENT) Fair Value & Analysis

Basic Materials · IN · Market cap ₹78.7B

SC Star Cement Limited STARCEMENT · BSE
Price₹194.65
Fair Value₹139.96
Upside-28.1%
Quality66/100
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Strengths

Healthy Growth (revenue 5y +17.1 %/yr)
Low debt · generates free cash flow

Risks

!Trades 39% ABOVE our fair value of ₹139.96
!Thin margins · 9.7% net margin
!Moderate moat 49/100
Healthy Growth (revenue 5y +17.1 %/yr)
Thin margins · 9.7% net margin
Low debt · generates free cash flow
0.51% dividend yield
Moderate moat 49/100
Evidence: High Range ₹83.31 – ₹206.84 Share as image

Fair value as of: Aug 24, 2026

From 24 valuation models · updated today

Share price −5.4% over the past month.

A solid business, but screening 28% overvalued on our models.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • Solid but not exceptional quality (66/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (₹83.31 to ₹206.84) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹297.88 ₹82.24 Fair Value ₹139.96 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 24, 2026.

How to read this chart

60‑month range ₹82.24 – ₹297.88 · fair‑value band ₹83.31 – ₹206.84 · the ₹194.65 price screens above the ₹139.96 fair value. Dashed = 300-day average. As of Aug 24, 2026.

Full chart & analysis →

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Analysis

Star Cement Limited (STARCEMENT) currently trades at ₹194.65, while our model-based Fair Value estimate is ₹139.96, implying the stock looks roughly 28.1% overvalued today. The Quality Score stands at 66/100 (solid quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Star Cement Limited generated revenue of ₹38.1B at a net margin of 9.7%. Revenue grew 3.4% year over year. It earns a return on equity of 12.9%. Net debt stands at ₹5.7B. Fundamentals as of Aug 24, 2026

Our scenario range runs from ₹83.31 (bear case) to ₹206.84 (bull case); at ₹194.65, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 37% below its 52-week high and 2% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -60% fair-value upside, at -28%, STARCEMENT screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹74.87 ₹141.35 ₹254.83 80
Residual Income ₹73.76 ₹88.54 ₹188.01 76
Rev-Margin DCF ₹82.30 ₹156.62 ₹253.37 74
All 24 models by family
DCF Models
FCF DCF ₹75.69 ₹148.60 ₹276.77 38
Owner Earnings ₹73.71 ₹144.97 ₹270.24 31
5Y Revenue Exit ₹82.30 ₹159.08 ₹264.59 39
5Y EBITDA Exit ₹125.53 ₹248.90 ₹406.15 41
5Y P/E Exit ₹94.27 ₹183.97 ₹287.58 38
10Y Revenue Exit ₹75.98 ₹148.54 ₹262.07 36
10Y EBITDA Exit ₹108.13 ₹214.64 ₹381.46 37
10Y P/E Exit ₹87.34 ₹166.85 ₹281.46 35
Earnings-Based
Graham-Dodd ₹66.19 ₹315.22 ₹433.71 54
Lynch FV ₹83.88 ₹119.82 ₹155.77 50
PEG = 1.0 ₹83.88 ₹119.82 ₹155.77 46
EPV ₹109.14 ₹129.31 ₹146.96 59
Multiples
P/E Multiple ₹124.11 ₹165.48 ₹206.84 63
P/S Multiple ₹105.12 ₹140.15 ₹175.19 58
P/B Multiple ₹124.11 ₹165.48 ₹206.84 55
EV/EBIT ₹136.37 ₹185.79 ₹235.21 53
EV/EBITDA ₹161.80 ₹219.69 ₹277.58 54
EV/Revenue ₹86.23 ₹128.28 ₹170.32 43
Asset-Based
NCAV (Graham) ₹39.48 ₹52.90 ₹78.95 50
Growth DCF
Growth DCF ₹74.87 ₹141.35 ₹254.83 80
Rev-Margin DCF ₹82.30 ₹156.62 ₹253.37 74
Economic Profit
Residual Income ₹73.76 ₹88.54 ₹188.01 76
ROIC Compounder ₹122.16 ₹172.52 ₹242.71 72
Growth Earnings
Growth-Adj P/E ₹118.13 ₹168.76 ₹219.39 68

Widest divergence: Growth Earnings (₹168.76) versus Asset-Based (₹52.90). Highest evidence: Growth DCF (80).

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Key figures & financial health

P/E ratio 21.3
P/S ratio 2.07 TTM
Dividend yield 0.5% payout 10.8%
Net margin 9.7% TTM
Return on equity 12.9% TTM
Return on assets 8.2% TTM
More key figures
Profitability
Operating margin 10.9% TTM
EPS (TTM) ₹9.15
Growth
Revenue (TTM) ₹38.1B TTM
Revenue growth (YoY) +3.4% 3y avg +11.8%
EPS growth (YoY) -24.2%
Balance sheet & cash flow
Free cash flow ₹2.7B FY2026
Net debt ₹5.7B FY2026 · ≈ 2.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 24, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 66/100

Of which business quality 67 · Market factors (momentum, volatility) 37

Profitability 63
Margins and returns on capital today
Quality Growth 83
Are margins and returns improving?
Cashflow 53
Earnings quality: real cash, not paper profit
Fin. Strength 78
Balance sheet, leverage, solvency risk
Investment 40
Disciplined investing over empire-building
Low Volatility 91
Calm price path (market factor)
Momentum 22
Price trend over the last 3–12 months (market factor)
52W Momentum 1
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Star Cement Limited manufactures and sells cement and clinker products in India and internationally. The company offers ordinary Portland, Portland pozzolana, Portland slag, and antirust and weather shield products under the Star Cement brand. It also generates power. The company markets its products through a network of dealers and retailers.

Full company description

Star Cement Limited manufactures and sells cement and clinker products in India and internationally. The company offers ordinary Portland, Portland pozzolana, Portland slag, and antirust and weather shield products under the Star Cement brand. It also generates power. The company markets its products through a network of dealers and retailers. The company was formerly known as Cement Manufacturing Company Limited and changed its name to Star Cement Limited in June 2016. Star Cement Limited was incorporated in 2001 and is based in Kolkata, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Star Cement Limited reported revenue of ₹37.8B in FY2026 versus ₹22.2B in FY2022, a compound +14.2%/yr. Reported net income was ₹3.9B in FY2026, compounding +12.4%/yr from FY2022.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹37.8B
Latest YoY
+19.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.8%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+17.1%
Avg. growth/yr (7Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.9%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+9.8% (9.8 + 0.0)
Revenue +14.2%/yr
FY22 ₹22.2B
FY23 ₹27.0B
FY24 ₹28.9B
FY25 ₹31.6B
FY26 ₹37.8B
Net income +12.4%/yr
FY22 ₹2.5B
FY23 ₹2.5B
FY24 ₹3.0B
FY25 ₹1.7B
FY26 ₹3.9B

STARCEMENT screens 28% overvalued. Compare with UltraTech Cement Limited →

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Cite: Fair Value Calculator (2026). "Star Cement Limited Fair Value". https://www.fairvalue-calculator.com/stock/STARCEMENT.BSE

Peer Group

Building Materials · 260 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 66 · Top 25%
Fair Value upside −28% · Below median
Return on equity (TTM) 13% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 10% · Top 25%
Operating margin (TTM) 11% · Above median
Revenue growth 3% · Above median
Dividend yield (TTM) 0.5% · Bottom 25%
Debt / equity 0.16× · Higher than median

Valuation Multiples vs Building Materials median · lower = cheaper

P/E (TTM) 21.3× · Pricier than median
P/B 2.47× · Pricier than 75% of peers
P/S (TTM) 2.07× · Pricier than 75% of peers
P/FCF 0.3× · Cheaper than median
EV/EBITDA 9.3× · Pricier than median

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Building Materials stocks, each showing price versus our Fair Value estimate (as of Aug 24, 2026).

Stock Price Fair Value vs Fair Value
UltraTech Cement Limited ULTRACEMCO ₹11,891 ₹4,718 -60%
China Jushi Co 600176 ¥40.56 ¥13.22 -67%
Grasim Industries Limited GRASIM ₹3,293 ₹1,245 -62%
CEMEX, S.A. CEMEXCPO 21.71 MXN 12.27 MXN -43%
Ambuja Cements Limited AMBUJACEM ₹421.00 ₹216.73 -49%
Shree Cement Limited SHREECEM ₹24,280 ₹8,215 -66%
TCC Group 1101B 43.15 TWD 9.76 TWD -77%
Taiwan Glass Ind. Corp 1802 57.60 TWD 13.98 TWD -76%
J.K. Cement Limited JKCEMENT ₹5,349 ₹2,184 -59%
Dalmia Bharat Limited DALBHARAT ₹1,842 ₹1,032 -44%

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Frequently asked questions

Is Star Cement Limited (STARCEMENT) overvalued or undervalued?
As of Aug 24, 2026, our model estimates a fair value of ₹139.96 versus a price of ₹194.65, about −28% (overvalued).
What is the fair value of STARCEMENT?
Our model-based fair value for Star Cement Limited is ₹139.96 (as of Aug 24, 2026), built from audited fundamentals. The current price: ₹194.65.
What is the quality score of STARCEMENT?
Star Cement Limited has a Quality Score of 66/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Star Cement Limited (STARCEMENT)?
Star Cement Limited reported trailing-twelve-month revenue of about ₹38.1B (latest available figure, as of Aug 24, 2026).
What is the net profit margin of STARCEMENT?
The net profit margin of Star Cement Limited is about 9.7%, meaning it keeps roughly 9.7% of revenue as net income. Based on the latest reported figures.
Does Star Cement Limited pay a dividend?
Star Cement Limited currently shows a dividend yield of about 0.51% relative to its recent price (as of Aug 24, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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