Star Cement Stock Gets 'Buy' Upgrade, Target Price Raise From Nirmal Bang —Here's Why

Nirmal Bang upgrades the stock to “Buy”, valuing the business at 13.5x Dec’FY26E EV/Ebitda (+1SD above 5-year average) with a target price of Rs 241.

Star Cement has set a target to elevate its Green energy share to 55% by FY26,

(Photo source: Freepik)

Star Cement has projected a volume growth of 6-7% YoY, consistent with industry growth throughout the year. However, it anticipates a more robust growth rate of 1314% in FY26. Despite current challenges, these data indicate confidence for the coming years.

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Nirmal Bang Report

Star Cement Ltd. is expected to achieve an Ebitda of Rs 2.6 billion, surpassing the guidance of Rs. 2.2-2.3 billion, driven by increased volumes and improved realization/T during Q4 FY25. The company is expected to gain advantages in FY26 from-

  1. Savings of Rs 600 million from waste heat recovery system,

  2. the growth in subsidies volume is projected to be between 400/tonne and 450/T in FY26, compared to 300/T in YTD-FY25.

  3. Savings of Rs 600 million in FY26 is due to the loss associated with clinker purchases in FY25.

Additionally, fixed costs is projected to decrease by 6-7% in FY26.

Click on the attachment to read the full report:

Nirmal Bang Star Cement Update.pdf
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Also Read: 'Buy' UltraTech Cement Reiterates Motilal Oswal, Sees 35% Upside — Here's Why

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