Star Cement Limited

CLOSED

Buyback · IPO Guide

Expert Rating

Neutral

The financials of the company looks good, RoNW is 17.33% and at CMP its looks fairly priced. Price difference is around 22% and acceptance ration as per current share holding for retail will be around 8%, but it may be possible that this ratio may go down as more people will buy for buyback and so we may expect the final acceptance ratio may be around 15% and profit may be 4%. So we give NEUTRAL rating to this buyback.

Star Cement Limited is the largest cement manufacturer in northeast India. The plant is spread across 200 hectares of land in the idyllic town of Lumshnong, a strategic location at Meghalaya that ensures easy availability of high-grade limestone. The brand 'Star Cement' has established itself as the most accredited brand of the region on grounds of both quality and fair pricing. Star Cement Limited is one of the most profitable cement manufacturers in North East India. Product: Star Cement's product range includes Ordinary Portland Cement (OPC 43-Grade) and (OPC 53-Grade) and Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC) and Anti Rust Cement (ARC) in line with evolving customer needs. Plant: Star Cement's 1.0 MTPA integrated cement plant at Lumshnong (Meghalaya) is proximate to key raw material reserves of limestone, coal, and shale. The company also added 0.67 MTPA cement unit in Meghalaya, 2.0 MTPA cement unit in Sonapur (Guwahati) and 2 grinding units in West Bengal with a total capacity of 0.67 MTPA ( though trading agreement), aggregating an installed capacity of 4.3 MTPA. Penetration: Brand 'Star Cement' is one of the largest in the Northeastern region. Its output is marketed through a network of over 6000 dealers and retailers across the North East, resulting in the largest market share in North East India. Star Cement also has a network of over 6000 dealers and retailers across West Bengal and Bihar. The Company’s institutional customers comprise Larsen & Toubro, National Hydro Power Corporation, Public Works Department, Indian Railways and Ministry of Defence. Presently Star Cement is marketing super quality clinker to different grinding units located in India, Nepal & Bhutan. The financials of the company looks good, RoNW is 17.33% and at CMP its looks fairly priced. Price difference is around 22% and acceptance ration as per current share holding for retail will be around 8%, but it may be possible that this ratio may go down as more people will buy for buyback and so we may expect the final acceptance ratio may be around 15% and profit may be 4%. So we give NEUTRAL rating to this buyback.

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Disclaimer

No financial information whatsoever published herein, should be construed as an offer to buy or sell securities, or as information to make investment decisions, or as an official confirmation of any transaction. All matter published herein is purely for educational and informational purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

💬 Community Discussion

50 Comments

B
Bipin 18 Nov 2019, 22:06

hi
B
Bipin 13 Nov 2019, 14:55

hold or sell
B
Bipin 13 Nov 2019, 14:55

kya kare
B
bipin khokhariya 24 Sep 2019, 20:09

Mahindra hold or sell @plz
B
bhavika Vasa 19 Aug 2019, 23:22

why its getting so down and down?
I
IPO Guru 16 Mar 2018, 11:24

@tahir, you can apply from your net banking or get form from the broker.
T
tahir ansari 11 Mar 2018, 01:18

i have demat ac in motilal oswal and how i wil get ipo bandhan bank
I
IPO Guru. 01 Feb 2018, 12:19

if your view is medium to long term then hold. Otherwise you may book profit.
B
Bipin. 31 Jan 2018, 18:35

Mahindra hold or sell @plz IPO Guru
I
IPO Guru. 12 Dec 2017, 13:09

listing of future supply may give it momentum.
J
jignesh kadvani . 12 Dec 2017, 12:17

Is there any chances to go beyond 450 in this week?
I
IPO Guru. 12 Dec 2017, 12:03

450 looks big resistance, if you may take risk then wait till future listing.
J
jignesh kadvani . 12 Dec 2017, 09:23

What to do in Mahindra hold or sell?
C
CMD. 24 Nov 2017, 15:01

above blast
C
CMD. 24 Nov 2017, 15:01

1st target 465 near
I
IPO Guru. 24 Nov 2017, 14:58

it can go.
J
jignesh kadvani . 24 Nov 2017, 11:48

450 possible to go today?
J
jignesh kadvani . 24 Nov 2017, 11:48

What to do in Mahindra hold or sell?
T
tarun9997. 23 Nov 2017, 12:21

=M
I
IPO Guru. 23 Nov 2017, 12:18

@tarun, we are not tracking it.
T
tarun9997. 23 Nov 2017, 12:14

what you say about ashok leylend's share...???i'm purchase 100 as115 rs....
I
IPO Guru. 23 Nov 2017, 12:11

sell partial above 440
K
kamlesh s Rana. 23 Nov 2017, 11:42

445 hold kare ya sell
C
CMD. 22 Nov 2017, 17:06

463 above good
P
pratik. 22 Nov 2017, 17:04

427 hold kare ya sell?
I
IPO Guru. 21 Nov 2017, 19:26

this IPO is of 429, but if you are employee, then for you its price is 387 (42 rs discount).
T
tarun9997. 21 Nov 2017, 19:20

387 rs ka ipo tha to 429 ka kyu dikha raha he sirji...
I
IPO Guru. 21 Nov 2017, 12:25

as per trend it may go around that level. Now hold or sell, its up to you.
N
NasTheScorpio. 21 Nov 2017, 11:51

have to wait for 3-4 days more ??
I
IPO Guru. 21 Nov 2017, 10:55

can't say today itself, but in 3-4 days.
V
vrjain. 21 Nov 2017, 10:54

finally good news
A
anjali. 21 Nov 2017, 10:50

by today?
I
IPO Guru. 21 Nov 2017, 10:50

yes, it may cross 435 to 440 as logistics given infra status.
J
jignesh kadvani . 21 Nov 2017, 10:13

Mahindra logistics now 427
I
IPO Guru. 20 Nov 2017, 14:41

@all, when it will go beyond issue price is difficult to say. But it will go surely
P
pramod. 17 Nov 2017, 11:43

how many days it will may take to come up to 430
P
pratik. 17 Nov 2017, 11:03

i don't think so
J
jignesh kadvani . 17 Nov 2017, 10:59

Mahindra logistics agle 10 din me badhne ke chanses he?
I
IPO Guru. 13 Nov 2017, 12:24

@rupesh, in this case you should contact your bank. They can provide you more details on this.
R
Rupesh. 13 Nov 2017, 12:13

Dear all I am facing one issue I have apply 5lot of Mahinda logistic money is hold by bank. I get 1lot allocated that money is detected from saving account. But still my 5lot money is on hold Please provide your valuable suggestion what i have to do
I
IPO Guru. 10 Nov 2017, 18:24

@sujoy, sell it above 432, so you don't have loss, if you can't hold for some time.
I
IPO Guru. 10 Nov 2017, 18:23

good thing for mll is it opened low and then moved up and remained above issue price till end. so there may be upward movement of 5-10%
I
IPO Guru. 10 Nov 2017, 18:22

@shah, as per bse data, its opened at 432.
G
gaurav. 10 Nov 2017, 17:52

hold for 1 week
G
gaurav. 10 Nov 2017, 17:52

right @aritra
A
Aritra. 10 Nov 2017, 17:46

Closing is not too bad... Hope for good Monday open...
S
Shah. 10 Nov 2017, 17:43

Dear IPO Guide. Mahindra opened at 425 today. Why are you showing it as 432??
S
sujoy. 10 Nov 2017, 15:25

guru ur.comments fail abt listing..why should i do
I
IPO Guru. 10 Nov 2017, 14:36

if you want better option, then its sell around 432 as market looks volatile, so it may be possible you may get chance to buy it around 415-420.
R
Raj shah. 10 Nov 2017, 14:35

ohhhokkk thanks ipo guru

Period	Total Income	Total Expenses	Profit After Tax (PAT)
FY 19	1,831.04	1,381.88	304.97
FY 18	1,629.11	1,107.75	336.18
FY 17	1,551.84	1,143.51	200.90
FY 16	1,763.41	1,364.03	139.34

Buyback Type	TENDER OFFER
Board Meeting Date	Jun 21, 2019
Record Date	Jul 05, 2019
Opening Date	Oct 22, 2019
Closing Date	Nov 05, 2019
Buyback Number Of Shares	68,00,000
Buyback Price	Rs 150/- per Equity Share

Star Cement Limited

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