Shares of Star Cement hit a 52-week high of Rs 135.90, up 9% on the BSE in intraday trade on Thursday, amid otherwise subdued markets amid improving operating results. The stock was quoted near a four-year high of Rs 137.60 hit in June 2019. In contrast, the S&P BSE Sensex was down 0.21% at 61,642 at 10:56 am.

Star Cement is engaged in the manufacture and sale of cement clinker and cement. Manufacturing units are located in Lumshnong (Meghalaya), Guwahati (Assam) and Siliguri (West Bengal). The company sells its products in the northeastern and eastern states of India.

The company operates in complex geographical terrain and has built a competitive advantage with its experience operating in the North Eastern Region (NER) of India and has strengthened its position with a material sales share of approximately 25%.

The government has initiated the comprehensive development of national NER in various forms. Across a range of indicators, the pace of development is now on the rise, with significant improvements in health, education, infrastructure development and industrialization, contributing to the socio-economic development of the region.

The implementation of various government projects and initiatives will contribute to the overall development of NER, which will concentrate the cement demand and lead to an increase in per capita cement consumption and help the company increase its market share in the region.

Higher capacity utilisation, backed by the government’s strong push for NER’s infrastructure development and better pricing power, will boost Star’s revenue and earnings CAGR of 14% and 17%.

Currently, the stock is trading above the target price of Rs 130 per share set by ICICI Securities.