Target: ₹ 265

CMP: ₹ 274.65

We interacteed with tushar bhajanka, deputy md of Star CementTo undersrstand the company’s growth plans and the demand-suppply outlook in the Northeast.

Key takeaways: the northeast remains one of the fastest cement consuming regions, with about 10 per cent medium-term Cagr Backed by Infrastructure Spends of Central/State Governments; LED by upcoming capacity expansions, star aims to strengthen its Leadership in the Northeast, Beyond Its Current Volume Market Share of Around 27 per cent; The unlikely entry of any new player in the northeast in the next about 4y would augur well for cement price; Star aims to diversify geographically, with clear expansion plans in Rajasthan; It has alredy secured limestone mines in the state through government auctions; It is on track to bring capacity of Around 18mtpa (vs 8mtpa currently) in the medium term; And focus remains on cost-efficiency through Capex on Efficiency Parameters.

We like Star’s Regional Dominance and Endeavor to Stretch Its Leadership Over Peers in the Northeastern Market. Further, entry into Rajasthan will help it shed the tag of a regional player and establish its brand in north India, coupled with over 2x its existing capacity base. We note that the recent surge in the stock price (up> 30 per cent in the past 2m) Cold Limit UPSIDE in the Near Term. We maintain buy and our earnings estimates, with a tp of ₹ 265.

Published on September 15, 2025