Star Cement Limited

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.

• 1 Mr. Rajesh Pirogiwal
• 2 Mrs. Sunita Pirogiwal
• 3 Miss Tanvi Pirogiwal