Buy Birla Corporation, target price Rs 1400: HDFC Securities
Birla Corporation, incorporated in the year 1919, is a Mid Cap company (having a market cap of Rs 7057.93 Crore) operating in Cement sector.
By ETMarkets.com | Updated:
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HDFC Securities has buy call on Birla Corporation with a target price of Rs 1400. The current market price of Birla Corporation is Rs 916.65.
Birla Corporation, incorporated in the year 1919, is a Mid Cap company (having a market cap of Rs 7057.93 Crore) operating in Cement sector.
Birla Corporation key Products/Revenue Segments include Cement, Jute Goods, Royalty Income, Other Operating Revenue, Export Incentives and Others for the year ending 31-Mar-2022.
Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 2024.00 Crore, down -.86 % from last quarter Total Income of Rs 2041.58 Crore and up 15.20 % from last year same quarter Total Income of Rs 1756.95 Crore. Company has reported net profit after tax of Rs -49.91 Crore in latest quarter.
The company’s top management includes Mr.Harsh V Lodha, Mr.Arvind Pathak, Mr.Vikram Swarup, Mr.Anand Bordia, Mr.Dhruba Narayan Ghosh, Dr.Deepak Nayyar, Mrs.Shailaja Chandra, Mr.Dilip Ganesh Karnik. Company has V Sankar Aiyar & Co. as its auditors. As on 31-12-2022, the company has a total of 8 Crore shares outstanding.
The brokerage continues to like the company for its large retail presence in the lucrative north/central regions and various cost-cutting initiatives. The company reported healthy 11/5% volume/NSR growth YoY. However, unit EBITDA fell 43% YoY on elevated fuel prices and operating losses at the Mukutban plant.
On QoQ basis, Mukutban losses narrowed and the company also benefited from slight fuel cost reduction driving consolidated unit EBITDA recovery by ~INR 135/MT QoQ.
HDFC Securities' expects margin recovery to gain pace given fuel prices continue to fall, continued ramp-up of the Mukutban plant and incentive accruals H2FY24E onwards. These along with no major near-term Capex should reduce gearing from FY24 onwards.
Promoter/FII Holdings
Promoters held 62.9 per cent stake in the company as of 31-Dec-2022, while FIIs owned 4.49 per cent, DIIs 16.0 per cent.
Birla Corporation, incorporated in the year 1919, is a Mid Cap company (having a market cap of Rs 7057.93 Crore) operating in Cement sector.
Birla Corporation key Products/Revenue Segments include Cement, Jute Goods, Royalty Income, Other Operating Revenue, Export Incentives and Others for the year ending 31-Mar-2022.
Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 2024.00 Crore, down -.86 % from last quarter Total Income of Rs 2041.58 Crore and up 15.20 % from last year same quarter Total Income of Rs 1756.95 Crore. Company has reported net profit after tax of Rs -49.91 Crore in latest quarter.
The company’s top management includes Mr.Harsh V Lodha, Mr.Arvind Pathak, Mr.Vikram Swarup, Mr.Anand Bordia, Mr.Dhruba Narayan Ghosh, Dr.Deepak Nayyar, Mrs.Shailaja Chandra, Mr.Dilip Ganesh Karnik. Company has V Sankar Aiyar & Co. as its auditors. As on 31-12-2022, the company has a total of 8 Crore shares outstanding.
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Investment Rationale The brokerage continues to like the company for its large retail presence in the lucrative north/central regions and various cost-cutting initiatives. The company reported healthy 11/5% volume/NSR growth YoY. However, unit EBITDA fell 43% YoY on elevated fuel prices and operating losses at the Mukutban plant.
On QoQ basis, Mukutban losses narrowed and the company also benefited from slight fuel cost reduction driving consolidated unit EBITDA recovery by ~INR 135/MT QoQ.
HDFC Securities' expects margin recovery to gain pace given fuel prices continue to fall, continued ramp-up of the Mukutban plant and incentive accruals H2FY24E onwards. These along with no major near-term Capex should reduce gearing from FY24 onwards.
Promoter/FII Holdings
Promoters held 62.9 per cent stake in the company as of 31-Dec-2022, while FIIs owned 4.49 per cent, DIIs 16.0 per cent.
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