Star CementNSE:STARCEMENT -1.40%84 Return-on-Tangible-Equity is 18.59% as of Mar. 2026, which is 51% above its 10-year median of 12.32. GuruFocus rates NSE:STARCEMENT with a GF Score™ of 84/100 and a GF Value™ of ₹267.79 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 397 Building Materials companies, Star Cement ranks better than 76.07% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Star Cement's annualized net income for the quarter that ended in Mar. 2026 was ₹5,924 Mil. Star Cement's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹31,863 Mil. Therefore, Star Cement's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 18.59%.
The historical rank and industry rank for Star Cement's Return-on-Tangible-Equity or its related term are showing as below:
NSE:STARCEMENT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.06 Med: 12.32 Max: 25.22
Current: 13.03
During the past 11 years, Star Cement's highest Return-on-Tangible-Equity was 25.22%. The lowest was 6.06%. And the median was 12.32%.
NSE:STARCEMENT's Return-on-Tangible-Equity is ranked better than 76.07% of 397
companies
in the Building Materials industry
Industry Median: 5.08
vs NSE:STARCEMENT: 13.03
Star Cement (NSE:STARCEMENT) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Star Cement Return-on-Tangible-Equity Related Terms
Star Cement Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Star Cement's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:STARCEMENT vs CRH, VMC, MLM: Return-on-Tangible-Equity Comparison
For the Building Materials subindustry, Star Cement's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Star Cement Return-on-Tangible-Equity vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Star Cement's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Star Cement's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 18.59% mean?
Star Cement (NSE:STARCEMENT) has a Return-on-Tangible-Equity of 18.59% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Star Cement and its competitors. This is 51% above median its historical median of 12.32. Over the past decade, Star Cement's Return-on-Tangible-Equity has ranged from 6.06 to 25.22. According to the industry distribution chart, Star Cement ranks #95 out of 397 companies in the Building Materials industry, placing it in the top 23.9%.
Is Star Cement's Return-on-Tangible-Equity too high?
Star Cement's current Return-on-Tangible-Equity of 18.59% is 51% above median its 10-year median of 12.32. Over the past 10 years, this metric has ranged from a low of 6.06 to a high of 25.22. The Building Materials industry median Return-on-Tangible-Equity is 5.08. Star Cement's value of 18.59% is 265.9% above this industry median. Based on the distribution chart, Star Cement ranks #95 out of 397 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Star Cement has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Star Cement's Return-on-Tangible-Equity compare to CRH and VMC?
According to the Building Materials industry distribution chart, Star Cement ranks #95 out of 397 companies for Return-on-Tangible-Equity. This places Star Cement in the top 24% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.08. Star Cement's value of 18.59% is 265.9% above this benchmark. Historically, Star Cement's own Return-on-Tangible-Equity has ranged from 6.06 to 25.22 over the past decade. While the company's 10-year median is 12.32 vs. the industry median of 5.08, Star Cement has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Building Materials company?
The median Return-on-Tangible-Equity among Building Materials companies is 5.08, based on 397 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Star Cement's current Return-on-Tangible-Equity of 18.59% is 265.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Star Cement and its competitors. For the Building Materials industry, the median Return-on-Tangible-Equity is 5.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Star Cement's current Return-on-Tangible-Equity is 18.59%, which is 51% above median its own 10-year median of 12.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Star Cement stock overvalued right now?
Based on GuruFocus' analysis, Star Cement (NSE:STARCEMENT) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹267.79, compared to a current price of ₹202.41 — trading 24.4% below its estimated fair value. The current Return-on-Tangible-Equity is 18.59%, which is 51% above median its 10-year median of 12.32 and 265.9% above the Building Materials industry median of 5.08. Star Cement's overall GF Score™ is 84/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Star Cement (NSE:STARCEMENT), the current Return-on-Tangible-Equity is 18.59% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Star Cement (NSE:STARCEMENT) Overvalued in 2026?
Based on GuruFocus' analysis, Star Cement stock appears to be undervalued.
The current stock price of ₹202.41 is trading 24.4% below its estimated GF Value™ of ₹267.79.
GuruFocus considers Star Cement to be Modestly Undervalued.
Key valuation signals for NSE:STARCEMENT:
Return-on-Tangible-Equity: 18.59% (51% above median its 10-year median of 12.32)
GF Value™: ₹267.79 vs. price of ₹202.41 (24.4% below fair value)
Industry Position: 265.9% above the Building Materials median (#95 of 397)
No single metric tells the full story. See the NSE:STARCEMENT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Star Cement Ltd is a cement company. It offers Cement and Cement linker products. The group markets clinker to different grinding units in North East India and parts of Eastern India. Its product range comprises ordinary Portland cement, Portland pozzolana cement, and Portland slag cement, among others. The company sells its products in India. Geographically, the company generates the majority of its revenue from India.
84GF Score
Get the complete analysis for NSE:STARCEMENT
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