Star Cement - In A Sweet Spot: HDFC Securities

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..HDFC Securities Institutional Equities .We maintain our Buy rating on Star Cement Ltd. with an unchanged target price of Rs 250/share (10 times September-26E consolidated Ebitda). Star remains in a sweet spot as its large expansion is about to get stabilised and grinding capacity is ramping up. Star is looking at volume pressure in Q1 FY25E owing to heavy rains in the Northeast region and clinker production disruptions as the new line is being stabilised. However, it remains upbeat on achieving 20% YoY volume growth in FY25E as new expansions stabilise and demand firms up. Incentives accruals will also swell from Q2 FY25 onwards. Additionally, Star opex should continue to cool off in FY25/26E on strong fuel mix management, rising share of green energy and other initiatives. Healthy operating cash flows should mostly fund Star’s ongoing expansions, doubling its cement capacity to 11.7million metric tonne between FY23 and FY27. We estimate the net debt to Ebitda to remain under one time along with pre-tax return on capital employed of 19-21% during FY25-27E..Click on the attachment to read the full report:.NBFCs Q1 Results Preview - To Be Slower In Growth; Pressure On NIM Sustains: Nirmal Bang.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 - In A Sweet Spot: HDFC Securities

Large expansion is about to get stabilised and grinding capacity is ramping up

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Star Cement - In A Sweet Spot: HDFC Securities

Large expansion is about to get stabilised and grinding capacity is ramping up

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