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Last Updated on: 22 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500335 | NSE: BIRLACORPN

Fundamental Analysis of Birla Corporation Ltd

Basic Stock Data

Last Updated: April 21, 2024, 1:44 pm

Market Cap 11,588 Cr.
Current Price 1,505
High / Low1,802/900
Stock P/E38.8
Book Value 817
Dividend Yield0.17 %
ROCE3.73 %
ROE0.75 %
Face Value 10.0

Data Source: screener.in

Competitors of Birla Corporation Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sagar Cements Ltd 2,814 Cr. 215305/18892.2 1210.33 %6.70 %1.27 % 2.00
Barak Valley Cements Ltd 120 Cr. 54.277.3/26.712.4 53.80.00 %9.60 %4.72 % 10.0
Bheema Cements Ltd 76.5 Cr. 23.473.5/21.0 23.50.00 %15.2 %46.9 % 10.0
Ambuja Cements Ltd 1,24,649 Cr. 628641/37338.2 1660.40 %12.6 %10.8 % 2.00
NCL Industries Ltd 931 Cr. 206258/17311.5 1801.46 %11.1 %5.99 % 10.0
Industry Average25,718.10 Cr225.3230.86108.860.44%11.04%13.94%6.80

Birla Corporation Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales1,6541,7772,1331,7491,6981,7502,2642,2042,0002,0162,4632,4082,286
Expenses1,2721,4471,7411,4061,4311,5281,9881,9441,9061,8722,1882,1111,997
Operating Profit38333039234426722227725994144274298289
OPM %23%19%18%20%16%13%12%12%5%7%11%12%13%
Other Income2146-4491314313428671627
Interest76736764636155709387899795
Depreciation92911019898101100115125130140140143
Profit before tax2362121801911197515377-82-641137677
Tax %29%30%-39%26%28%19%27%20%32%23%25%22%24%
Net Profit167148249142866011162-56-50856058
EPS in Rs21.6419.2732.3818.3811.117.8514.428.04-7.33-6.4811.037.757.58

Quarterly Chart

Birla Corporation Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,2872,6033,0163,2103,2684,3485,7306,5496,9166,7857,4618,6829,173
Expenses1,9342,2092,7592,9082,9823,7244,9225,6005,5695,4346,3517,8988,168
Operating Profit3533942583022866248089491,3471,3521,1107851,005
OPM %15%15%9%9%9%14%14%14%19%20%15%9%11%
Other Income1261271131431461396278742867107119
Interest5365867882277378371388296243339368
Depreciation81105133154149256332339352371397510554
Profit before tax34635115221320123016031768271353843202
Tax %31%23%15%18%17%5%4%19%26%12%26%6%
Net Profit23927013017516821915425650563039940153
EPS in Rs31.0935.1016.8622.7621.7828.5019.9933.2065.6081.8351.765.2619.88
Dividend Payout %19%20%36%26%28%23%33%23%11%12%19%48%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)12.97%-51.85%34.62%-4.00%30.36%-29.68%66.23%97.27%24.75%-36.67%-89.97%
Change in YoY Net Profit Growth (%)0.00%-64.82%86.47%-38.62%34.36%-60.04%95.91%31.03%-72.51%-61.42%-53.31%

Growth

Compounded Sales Growth
10 Years:13%
5 Years:9%
3 Years:8%
TTM:12%
Compounded Profit Growth
10 Years:-16%
5 Years:-23%
3 Years:-56%
TTM:187%
Stock Price CAGR
10 Years:17%
5 Years:23%
3 Years:16%
1 Year:60%
Return on Equity
10 Years:7%
5 Years:7%
3 Years:7%
Last Year:1%

Last Updated: April 17, 2024, 3:35 am

Balance Sheet

Last Updated: April 21, 2024, 9:43 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital77777777777777777777777777
Reserves2,1692,3762,4522,5502,8483,2094,2034,4184,7295,4095,9725,9046,211
Borrowings1,1351,2261,4011,3021,2814,2554,1304,0494,2824,1464,3264,4624,101
Other Liabilities6938509521,0661,0232,1572,6642,7873,0873,2683,4883,6463,847
Total Liabilities4,0754,5294,8824,9955,2299,69811,07511,33212,17512,90113,86314,08914,235
Fixed Assets1,3541,7381,8701,9282,0336,3627,3687,2637,3257,3237,5779,8439,745
CWIP514229142123638057629141,6042,1052,551358516
Investments1,0371,2631,3251,3091,6905646728778367521,009867839
Other Assets1,1691,3001,5461,6361,4431,9662,2722,2772,4112,7212,7263,0213,136
Total Assets4,0754,5294,8824,9955,2299,69811,07511,33212,17512,90113,86314,08914,235

Reserves and Borrowings Chart

Birla Corporation Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 2451963592822496778051,0641,3411,3281,039805
Cash from Investing Activity -252-111-341-11-11-982-234-543-1,184-582-775-365
Cash from Financing Activity 12-62-10-265-202280-555-535-201-702-270-318
Net Cash Flow6238636-2415-14-4445-6122

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow352.00393.00257.00301.00285.00620.00804.00945.00-3.00-3.00-3.00781.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days6119101111121513151514
Inventory Days376523353428343339301303313301288360
Days Payable9211610612398198224243208218264307
Cash Conversion Cycle2914172563142551528975118993867
Working Capital Days536310471619190-5242123
ROCE %12%11%6%6%7%7%7%8%12%12%8%4%

Financial Efficiency Indicators Chart

Birla Corporation Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters62.90%62.90%62.90%62.90%62.90%62.90%62.90%62.90%62.90%62.90%62.90%62.90%
FIIs3.61%3.96%3.68%3.72%4.16%4.34%4.29%4.49%5.74%7.18%6.58%6.45%
DIIs13.77%13.76%15.35%16.32%16.29%16.06%15.71%16.03%16.37%15.79%16.00%16.17%
Public19.72%19.39%18.07%17.06%16.65%16.70%17.07%16.57%15.00%14.15%14.51%14.48%
No. of Shareholders69,66078,59386,57383,37290,70195,89698,01799,55798,10382,38490,38795,729

Shareholding Pattern Chart

No. of Shareholders

Birla Corporation Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India Small Cap Fund26701320.88328.31
HSBC Value Fund9635821.24118.48
ICICI Prudential Smallcap Fund6625571.3581.46
Nippon India Power & Infra Fund5616102.5369.05
HDFC Multi Cap Fund4229830.5952.01
ICICI Prudential Infrastructure Fund3557591.3543.74
Invesco India Multicap Fund3249591.4639.96
Nippon India Retirement Fund - Wealth Creation Scheme3000001.436.89
ICICI Prudential Business Cycle Fund2969850.5536.52
Sundaram Multi Cap Fund2783321.6334.22

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)5.2651.7681.8365.6033.21
Diluted EPS (Rs.)5.2651.7681.8365.6033.21
Cash EPS (Rs.)71.47103.30129.97111.3077.24
Book Value[Excl.RevalReserv]/Share (Rs.)776.63662.69712.38624.10583.72
Book Value[Incl.RevalReserv]/Share (Rs.)776.63785.47712.38624.10583.72
Revenue From Operations / Share (Rs.)1127.42968.86881.11898.02850.37
PBDIT / Share (Rs.)114.93156.97186.66184.53133.37
PBIT / Share (Rs.)48.72105.42138.52138.8489.33
PBT / Share (Rs.)5.6069.8392.5388.5041.22
Net Profit / Share (Rs.)5.2651.7681.8365.6033.20
NP After MI And SOA / Share (Rs.)5.2651.7681.8365.6033.20
PBDIT Margin (%)10.1916.2021.1820.5415.68
PBIT Margin (%)4.3210.8815.7215.4610.50
PBT Margin (%)0.497.2010.509.854.84
Net Profit Margin (%)0.465.349.287.303.90
NP After MI And SOA Margin (%)0.465.349.287.303.90
Return on Networth / Equity (%)0.677.8111.4810.515.68
Return on Capital Employeed (%)3.196.929.8110.617.20
Return On Assets (%)0.282.874.884.142.25
Long Term Debt / Equity (X)0.640.740.650.760.80
Total Debt / Equity (X)0.720.820.660.780.81
Asset Turnover Ratio (%)0.490.450.440.490.46
Current Ratio (X)1.291.341.321.281.40
Quick Ratio (X)0.830.950.910.900.96
Inventory Turnover Ratio (X)1.381.411.391.491.49
Dividend Payout Ratio (NP) (%)190.1419.329.1611.4319.57
Dividend Payout Ratio (CP) (%)13.999.685.766.738.41
Earning Retention Ratio (%)-90.1480.6890.8488.5780.43
Cash Earning Retention Ratio (%)86.0190.3294.2493.2791.59
Interest Coverage Ratio (X)2.614.984.853.672.77
Interest Coverage Ratio (Post Tax) (X)1.102.773.322.301.69
Enterprise Value (Cr.)10962.9713153.0410777.036708.177552.92
EV / Net Operating Revenue (X)1.261.761.590.961.15
EV / EBITDA (X)12.3910.887.504.727.35
MarketCap / Net Operating Revenue (X)0.781.221.080.460.61
Retention Ratios (%)-90.1480.6790.8388.5680.42
Price / BV (X)1.141.781.330.660.89
Price / Net Operating Revenue (X)0.781.221.080.460.61
EarningsYield0.010.040.080.150.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 238.15

The stock is overvalued by 84.18% compared to the current price ₹1505

Calculation basis:

  • Fair value = (P/E Ratio * (Return on Equity / 100) * Book Value) * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 24.17, which is a positive sign.
  2. The company has higher reserves (4,034.62 cr) compared to borrowings (3,084.31 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (4.92 cr) and profit (335.85 cr) over the years.
  1. The stock has a low average ROCE of 8.33%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 180.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Birla Corporation Ltd:
    1. Net Profit Margin: 0.46%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 3.19% (Industry Average ROCE: 11.04%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 0.67% (Industry Average ROE: 13.94%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.10
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.83
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 38.8 (Industry average Stock P/E: 30.86)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✓ Total Debt / Equity: 0.72
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating: ★☆☆☆☆

About the Company - Qualitative Analysis

Birla Corporation Ltd. is a Public Limited Listed company incorporated on 25/08/1919 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L01132WB1919PLC003334 and registration number is 003334. Currently Company is involved in the business activities of Finishing of jute, mesta and other vegetable textiles fabrics. Company’s Total Operating Revenue is Rs. 4790.93 Cr. and Equity Capital is Rs. 77.01 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
CementBirla Building', Kolkata West Bengal 700001investorsgrievance@birlacorp.com
http://www.birlacorporation.com
Management
NamePosition Held
Mr. Harsh V LodhaChairman
Mr. Sandip GhoseManaging Director & CEO
Mr. Dilip Ganesh KarnikDirector
Mr. Vikram SwarupDirector
Mr. Anand BordiaDirector
Mrs. Shailaja ChandraDirector
Mr. Dhruba Narayan GhoshDirector
Dr. Deepak NayyarDirector

Birla Corporation Ltd. Share Price Update

Share PriceValue
Today₹1,485.00
Previous Day₹1,477.00

FAQ

What is the latest fair value of Birla Corporation Ltd?

The latest fair value of Birla Corporation Ltd is 238.15.

What is the Market Cap of Birla Corporation Ltd?

The Market Cap of Birla Corporation Ltd is 11,588 Cr..

What is the current Stock Price of Birla Corporation Ltd as on 22 April 2024?

The current stock price of Birla Corporation Ltd as on 22 April 2024 is 1,505.

What is the High / Low of Birla Corporation Ltd stocks in FY 2024?

In FY 2024, the High / Low of Birla Corporation Ltd stocks is ₹1,802/900.

What is the Stock P/E of Birla Corporation Ltd?

The Stock P/E of Birla Corporation Ltd is 38.8.

What is the Book Value of Birla Corporation Ltd?

The Book Value of Birla Corporation Ltd is 817.

What is the Dividend Yield of Birla Corporation Ltd?

The Dividend Yield of Birla Corporation Ltd is 0.17 %.

What is the ROCE of Birla Corporation Ltd?

The ROCE of Birla Corporation Ltd is 3.73 %.

What is the ROE of Birla Corporation Ltd?

The ROE of Birla Corporation Ltd is 0.75 %.

What is the Face Value of Birla Corporation Ltd?

The Face Value of Birla Corporation Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Birla Corporation Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE