Get App


Associate Partners

Last Updated : May 09, 2019 04:37 PM IST | Source:

Hold Star Cement; target of Rs 120: ICICI Direct

ICICI Direct recommended hold rating on Star Cement with a target price of Rs 120 in its research report dated May 09, 2019.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Star Cement

Star Cement exhibited a weak Q4FY19 performance, missing our estimates on all major fronts. Sales volumes saw growth of 4.7% YoY to 0.84 MT from 0.8 MT in Q4FY18 (vs. I-direct estimates of 0.88 MT). Consequently, topline growth stayed low at 2.2% YoY to Rs 538 crore (vs. I-direct estimate of Rs 572.4 crore). Blended realisations remained lower than previous year by 2.4% YoY at ~Rs 6400/t (vs. I-direct estimates of Rs 6512/t). Cost of raw materials saw 34.2% growth YoY to Rs 137 crore, which also contributed to lower EBITDA margins. Consequently, EBITDA margins contracted ~380 bps to 24.2% with EBITDA/t 15.5% lower YoY at ~ Rs 1550/t. EBITDA for the quarter saw de-growth of 11.5% YoY to Rs 130 crore (below I-direct estimate of Rs 170 crore). Consequently, net profit for the quarter was at Rs 90 crore (vs. I-direct estimate of Rs 95 crore), down 16.8% YoY, partly supported by lower tax expense and finance cost.


We maintain HOLD rating on the stock, with a valuation of 8.5x FY21E EV/EBITDA and arrive at a target price of Rs 120/share.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Get Lok Sabha 2019 Live Election Results, constituency-wise tally, news, views and analysis
Follow our Lok Sabha Election Result Live Blog here.
First Published on May 9, 2019 04:37 pm
More From
Follow us on
Available On
PCI DSS Compliant