Check Before You Invest : BirlaNu Ltd

Snapshot

Q.1 Which industry/sub-sector does BirlaNu Ltd belong to?

BirlaNu Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.

Q.2 Is BirlaNu Ltd a good quality company?

BirlaNu Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is BirlaNu Ltd undervalued or overvalued?

BirlaNu Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is BirlaNu Ltd a good buy now?

BirlaNu Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of BirlaNu Ltd?

BirlaNu Ltd revenue growth is 3.6% for FY-2025, which is below its 5-year CAGR of 11.83%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of BirlaNu Ltd?

BirlaNu Ltd Return on capital employed is 8.65% for FY-2025, which is below its 5-year historical median of 14.63%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of BirlaNu Ltd?

BirlaNu Ltd Return on Asset is 4.57%, which is below its 5-year historical median of 8.11%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of BirlaNu Ltd?

BirlaNu Ltd Return on equity is 7.43% for FY-2025, which is below its 5-year historical median of 12.15%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of BirlaNu Ltd?

BirlaNu Ltd Cash conversion cycle is 45 days, above its 5-year historical median of 33 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.2	1.27
ROE	7.43	12.15
ROCE	8.65	14.63
Cash Conversion Cycle	45 days	33 days

Q.6 Gross Profit margin of BirlaNu Ltd?

BirlaNu Ltd Gross profit margin which is the profit after deduction of direct costs, is 4% for FY-2025, which is below its 5-year median of 10%, indicating decreasing margins.

Q.7 Operating Profit Margin of BirlaNu Ltd?

BirlaNu Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.19% for FY-2025, which is below its 5-year median of 9.17% indicating decreasing margins.

Q.8 Net Profit Margin of BirlaNu Ltd?

BirlaNu Ltd Net Profit Margin is 3.94% for FY-2025, is below with its 5-year median of 6.04%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	4	10
Operating Profit Margin	4.19	9.17
Net Profit Margin	3.94	6.04

Q.9 Debt to Equity ratio of BirlaNu Ltd?

BirlaNu Ltd Debt-to-Equity ratio is 0.23, which is lower with the industry average of 0.39, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of BirlaNu Ltd?

BirlaNu Ltd Debt to cash flow from operations is 5.32, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of BirlaNu Ltd?

Promoters hold 40.57% of the BirlaNu Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of BirlaNu Ltd vs industry peers?

BirlaNu Ltd revenue CAGR is 11.83%, compared to the industry median CAGR of 6.22%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	3.6	6.2
Gross Profit Growth	-42.7	NAN
Operating Profit Growth	-37.4	-3.8
Net Profit Growth	-11.7	-9.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.2	0.82
ROE	7.43	7.62
ROCE	8.65	9.4
Cash Conversion Cycle (days)	45.34	23

Valuation & price assessment

Q.1 Stock return of BirlaNu Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 11.8% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	11.8%	-14.5%	-16.2%	-23.1%

Q.3 Valuation ratios of BirlaNu Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	33.8	17.57	22.85
Price to Book	0.94	1.81	1.92
Price to Sales	0.52	0.96	1.40
EV to EBITDA	10.94	11.22	11.62

Check more companies

1. ACC

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3. JSW Cement

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5. Nuvoco Vistas Corpor

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7. JK Lakshmi Cement

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9. Prism Johnson

10. Heidelberg Cement

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