Anand Rathi's research report on Star Cement
With 9.7m cement tpa now, Star Cement is targeting 18m-20m tpa by FY30. Greater operational efficiency with the stabilised clinker unit, incentives from capacity commissioning and the rising share of green energy (aimed at 55-60%) would aid the operating performance. Peak debt/EBITDA is guided to be 1.5x despite the expansion.
Outlook
We retain our Buy recommendation, at a higher 12-mth TP of Rs310 (earlier Rs275), 12x Sep’27e EV/EBITDA.
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