Star Cement - Positives Galore; ICICI Securities Initiates Coverage With A Buy

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Star Cement Ltd. is set to surpass the Rs 10 billion-plus Ebitda milestone in FY26E, complimented by:expected cost savings of ~Rs 150/tonne, owing to the slated jump in share of green power and increase in fuel supply agreement coal allocation;a strong balance-sheet with net cash of ~Rs 8 billion in FY26E (versus ~Rs 5 billion in FY23) despite capex; andfirm return on equity of ~18% over FY25-FY26. .Factoring in the multiple positives, we value Star Cement’s core Ebitda (excluding incentives) at 11 times FY26E enterprise value/Ebitda multiple. Being prudent, we have assumed an net present value of the fiscal incentives that are likely to accrue beyond FY26. Our ascribed valuation multiple of 11 times is 1-standard deviation higher than the past five-year EV/Ebitda mean of ~9.5 times (on reported Ebitda, including incentives). However, it is at par to the past three-year average (EV/Ebitda) when we consider core Ebitda (excluding incentives). With a target price of Rs 271, we initiate coverage on Star Cement with a Buy..Key Risk: A sharp drop in cement prices or sharp increase in fuel cost are the key risks to our recommendation..Click on the attachment to read the full report:.Bandhan Bank - MD, CEO Ghosh’s Resignation Blurs Future Prospects; Stock ‘Under Review’ Now: ICICI Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Star Cement - Positives Galore; ICICI Securities Initiates Coverage With A Buy

Sanguine outlook for North East region; Star Cement a major beneficiary

Choose a plan