Star Cement: Eastern Expansion To Drive Volume; North East Profitability Stable, Says Nirmal Bang
A worker pours a bag of cement into a cement processor machine. (Photographer Susana Gonzalez/Bloomberg)

Star Cement: Eastern Expansion To Drive Volume; North East Profitability Stable, Says Nirmal Bang

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Nirmal Bang Report

We believe that Star Cement Ltd. is well placed to capitalise on cashflows from its profitable North East operations to drive expansion in the Eastern region.

Despite the adverse demand-supply scenario in the Eastern region currently, the relatively better demand growth potential of the region and presence of larger pan-India players will ensure that pricing remains at economically viable levels.

Cement prices in the North East and East regions are not correlated and hence any drop in prices in the East is unlikely to have any adverse impact on North East prices.

We believe that the entry of outside players in the North East market will be limited and indigenous players will be able to retain their market share.

Click on the attachment to read the full report:

Nirmal Bang Star Cement-Initiating Coverage-30 December 2020.pdf

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