Star Cement Intrinsic Value

STARCEMENT • Construction
Current Stock Price
₹221.80
Primary Intrinsic Value
₹85.44
Market Cap
₹887.2 Cr
+100.0% Upside
Median Value
₹443.60
Value Range
₹67 - ₹555
Assessment
Trading Below Calculated Value
Safety Margin
50.0%

STARCEMENT Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹85.44 ₹68.35 - ₹102.53 -61.5% EPS: ₹7.12, Sector P/E: 12x
Book Value Method asset ₹554.50 ₹499.05 - ₹609.95 +150.0% Book Value/Share: ₹719.75, P/B: 1.0x
Revenue Multiple Method revenue ₹443.60 ₹399.24 - ₹487.96 +100.0% Revenue/Share: ₹814.00, P/S: 0.8x
EBITDA Multiple Method earnings ₹443.60 ₹399.24 - ₹487.96 +100.0% EBITDA: ₹776.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹554.50 ₹443.60 - ₹665.40 +150.0% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹66.54 ₹59.89 - ₹73.19 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹66.54 ₹59.89 - ₹73.19 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹443.60 ₹399.24 - ₹487.96 +100.0% ROE: 9.9%, P/E Multiple: 10x
Graham Defensive Method conservative ₹339.56 ₹305.60 - ₹373.52 +53.1% EPS: ₹7.12, BVPS: ₹719.75
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

STARCEMENT Intrinsic Value Analysis

What is the intrinsic value of STARCEMENT?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Star Cement (STARCEMENT) is ₹443.60 (median value). With the current market price of ₹221.80, this represents a +100.0% variance from our estimated fair value.

The valuation range spans from ₹66.54 to ₹554.50, indicating ₹66.54 - ₹554.50.

Is STARCEMENT undervalued or overvalued?

Based on our multi-method analysis, Star Cement (STARCEMENT) appears to be trading below calculated value by approximately 100.0%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 3.12 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.43 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 9.9% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 23.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.79x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹297 Cr ₹33 Cr Positive Free Cash Flow 7/10
March 2024 ₹490 Cr ₹165 Cr Positive Free Cash Flow 7/10
March 2023 ₹358 Cr ₹231 Cr Positive Free Cash Flow 8/10
March 2022 ₹417 Cr ₹273 Cr Positive Free Cash Flow 8/10
March 2021 ₹350 Cr ₹184 Cr Positive Free Cash Flow 8/10