Birla Corpn.

Market Cap: Mid Cap
Industry: Cement
ISIN: INE340A01012
NSEID: BIRLACORPN
BSEID: 500335

INR

1,107.95

5.95 (0.54%)

BSENSE

Apr 11, 12:53 PM

BSE+NSE Vol: 32.19 k

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

J K Cements

Orient Cement

Shree Cement

Ambuja Cements

Grasim Inds

UltraTech Cem.

KCP

Heidelberg Cem.

Birla Corpn.

Prism Johnson

India Cements

Why is Birla Corporation Ltd ?

Weak Long Term Fundamental Strength with a -9.61% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.25 times
The company has been able to generate a Return on Equity (avg) of 6.44% signifying low profitability per unit of shareholders funds

Negative results in Dec 24

PAT(HY) At Rs 6.00 cr has Grown at -96.42 %
PBT LESS OI(Q) At Rs 25.92 cr has Fallen at -70.5 %
NON-OPERATING INCOME(Q) is 37.30 % of Profit Before Tax (PBT)

Stock is technically in a Mildly Bearish range

Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST

Below par performance in long term as well as near term

Along with generating -28.44% returns in the last 1 year, the stock has also underperformed BSE 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Cement)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Birla Corpn. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Birla Corpn.

-28.18%

-0.89

31.92%

SENSEX

0.45%

0.03

14.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.99%

EBIT Growth (5y)

-9.61%

EBIT to Interest (avg)

2.13

Debt to EBITDA (avg)

3.67

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.80

Tax Ratio

28.12%

Dividend Payout Ratio

18.31%

Pledged Shares

Institutional Holding

21.86%

ROCE (avg)

7.95%

ROE (avg)

6.44%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.22

EV to EBIT

20.44

EV to EBITDA

10.19

EV to Capital Employed

1.15

EV to Sales

1.30

PEG Ratio

Dividend Yield

0.91%

ROCE (Latest)

6.85%

ROE (Latest)

4.40%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DEBT-EQUITY RATIO(HY)

Lowest at 0.57 times

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 300.23 cr

-15What is not working for the Company

PAT(HY)

At Rs 6.00 cr has Grown at -96.42 %

PBT LESS OI(Q)

At Rs 25.92 cr has Fallen at -70.5 %

NON-OPERATING INCOME(Q)

is 37.30 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Birla Corpn.

Debt-Equity Ratio - Half Yearly

Lowest at 0.57 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Cash and Cash Equivalents - Half Yearly

Highest at Rs 300.23 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Birla Corpn.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 25.92 cr has Fallen at -70.5 %

over average PBT of the previous four quarters of Rs 87.89 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 31.19 cr has Fallen at -59.1 %

over average PAT of the previous four quarters of Rs 76.23 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Non Operating Income - Quarterly

is 37.30 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT