Star Cement wins preferred bid for Assam limestone block with 207.8 MT reserves
The 123-hectare Boro Lakhindong West Block strengthens captive supply for the company's northeast operations and supports its ₹1,500 crore capex plan.
— 3 earlier stories on Star Cement Ltd. →What's new
- Star Cement declared preferred bidder for a 123-hectare limestone block in Assam.
- The block holds an estimated 207.822 million tonnes of limestone.
- Strengthens captive raw material supply for northeast cement operations.
Why this matters
Securing 207.8 MT of limestone ensures long-term raw material security for Star Cement's growing northeast footprint. With a ₹1,500 cr capex plan and a market cap of ₹8,567 cr, this reserve backs the company's capacity expansion strategy. The stock's P/E of 21.8x is not demanding if execution holds.
What we're watching
- Final grant of the mining lease by Assam government.
- Impact on input costs and margins given captive limestone.
- Next phase of capex allocation for northeast.
The full read
Star Cement has secured the preferred bid for a 123-hectare limestone block in Assam containing 207.822 million tonnes of limestone. This is a strategic win. The mid-cap cement maker has been ramping up capex, most recently ₹1,500 crore, to expand its northeast footprint. The reserve, once the lease is granted, will provide captive raw material for years and potentially lower input costs. In the latest March quarter, Star Cement reported sales of ₹1,174 crore and net profit of ₹147 crore, with a trailing ROE of just 5.9%. The challenge now is to convert the reserve into production quickly and integrate it with existing plants. The stock trades at 21.8x trailing earnings, which is reasonable if the expansion delivers.
Questions answered
- How much limestone does this block add relative to the company's existing reserves?
- The source does not disclose Star Cement's existing reserves, but 207.8 MT is a significant addition for a mid-cap cement maker with a market cap of ₹8,567 cr.
- Is the mining lease final?
- No, preferred bidder status is preliminary. The final grant of the mining lease is pending and subject to procedural clearances.
- How does this tie into the company's recent capex plans?
- Star Cement had planned ₹600-700 cr capex for FY27 and a larger ₹1,500 cr plan. The block supports the capacity expansion underlying those investments.
- What region does this serve?
- The block is in Dima Hasao district, Assam, in the northeast where Star Cement already operates.
- What was Star Cement's latest quarterly performance?
- In the March 2026 quarter, it reported sales of ₹1,174 cr and net profit of ₹147 cr.
Star Cement Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on STARCEMENT →- 24 Jun 2026 · 11:24 AM IST Star Cement wins preferred bid for Assam limestone block with 207.8 MT reserves
- 28d ago Star Cement plans ₹600-700 cr capex this year as subsidies drop ₹40-50 cr
- 29d ago Star Cement cuts non-cement margin guidance by 60% and boosts capex to ₹1,500 cr
- 33d ago Star Cement swings to ₹130 cr profit as board reshuffles top brass