HSIE Results Daily 27/05/2026: Star Cement
Authored By Prime Research | Last Modified: May 27, 2026 02:16 PM IST
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Margin Shines Further to a 29-Quarter High
We maintain BUY on Star Cement with a revised target price of INR 290/share. The company continues to benefit from its strong position in the North-East region, healthy incentive accruals, and improved operational efficiency.
During Q4FY26, volume increased 13% YoY while unit EBITDA expanded to INR 1,818/MT, the highest level in 29 quarters. Star Cement expects to complete its planned greenfield expansions in Bihar and Rajasthan by H1FY29.
- Q4FY26 performance: Consolidated volume grew 13% YoY to 1.73 million tonnes. Cement sales in the North-East region rose 23% YoY while trade sales accounted for 78% of total volume.
- Margin expansion: Unit EBITDA increased to INR 1,818/MT compared with INR 1,562/MT in the previous quarter, marking a 29-quarter high.
- FY26 performance: Consolidated volume rose 16% YoY to 5.5 million tonnes. EBITDA jumped 62% YoY to INR 9.4bn driven by lower fuel costs, better pricing and operating leverage.
- Cash flow and balance sheet: Operating cash flow reached INR 7.7bn during FY26, while net debt reduced to INR 2.2bn.
- Expansion plans: The company expects the 2mn MT Bihar grinding unit and 4mn MT integrated unit in the North-East to become operational in H1FY29.
- Outlook: Management expects 10–12% volume growth in FY27, supported by strong regional demand and lower competitive intensity in the North-East market.
Quarterly / Annual Financial Summary (Consolidated)
| Particulars | 4QFY26 | 4QFY25 | YoY (%) | 3QFY26 | QoQ (%) | FY26 | FY27E | FY28E |
|---|---|---|---|---|---|---|---|---|
| Sales Volume (mn MT) | 1.73 | 1.53 | 13.1 | 1.30 | 33.7 | 5.50 | 6.05 | 6.65 |
| NSR (INR/MT) | 6,772 | 6,867 | (1.4) | 6,790 | (0.3) | 6,868 | 6,799 | 6,765 |
| EBITDA (INR/MT) | 1,818 | 1,715 | 6.0 | 1,562 | 16.4 | 1,702 | 1,480 | 1,473 |
| Net Sales | 11,736 | 10,521 | 11.5 | 8,800 | 33.4 | 37,765 | 41,126 | 45,012 |
| EBITDA | 3,151 | 2,627 | 19.9 | 2,055 | 55.6 | 9,360 | 8,954 | 9,798 |
| APAT | 1,524 | 1,232 | 23.8 | 791 | 92.8 | 4,019 | 3,537 | 3,787 |
| EPS (INR) | 3.8 | 3.0 | 23.8 | 2.0 | 92.8 | 9.9 | 8.8 | 9.4 |
| EV/EBITDA (x) | 9.5 | 8.9 | ||||||
| P/E (x) | 24.7 | 23.1 | ||||||
| RoE (%) | 10.6 | 10.5 | ||||||
Source: Company, HSIE Research
BUY
| CMP (as on 26 May 2026) | INR 216 |
| Target Price | INR 290 |
| NIFTY | 23,914 |
Key Changes
| OLD | NEW | |
|---|---|---|
| Rating | BUY | BUY |
| Price Target | INR 280 | INR 290 |
| EPS Change FY27E | 8.7% | |
| EPS Change FY28E | 3.5% |
Key Stock Data
| Bloomberg code | STRCEM IN |
| No. of Shares (mn) | 404 |
| MCap (INR bn) | 87 |
| 6m avg traded value (INR mn) | 69 |
| 52 Week high / low | INR 309 / 197 |
Stock Performance (%)
| 3M | 6M | 12M | |
|---|---|---|---|
| Absolute (%) | (0.4) | (6.2) | (2.1) |
| Relative (%) | 7.1 | 5.0 | 5.4 |
Shareholding Pattern (%)
| Dec-25 | Mar-26 | |
|---|---|---|
| Promoters | 57.62 | 58.12 |
| FIs & Local MFs | 4.48 | 2.65 |
| FPIs | 2.47 | 2.26 |
| Public & Others | 35.43 | 36.97 |
| Pledged Shares | 1.33 | 1.33 |
Source:
- BSE
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