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Check Before You Invest : Birla Corporation Ltd

BSE: 500335 NSE: BIRLACORPN ISIN: INE340A01012
  |   Sector:  Construction & Infrastructure   |   Industry:  Cement & Construction Materials

Snapshot

Q.1 Which industry/sub-sector does Birla Corporation Ltd belong to?
Birla Corporation Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.
Q.2 Is Birla Corporation Ltd a good quality company?
Birla Corporation Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Birla Corporation Ltd undervalued or overvalued?
Birla Corporation Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Birla Corporation Ltd a good buy now?
Birla Corporation Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Birla Corporation Ltd?
Birla Corporation Ltd revenue growth is -4.6% for FY-2025 , which is below its 5 year CAGR of 5.9% , indicating slower growth.
Q.2 Gross Profit margin of Birla Corporation Ltd?
Birla Corporation Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.7% for FY-2025 , which is below its 5 year median of 11% , indicating decreasing margins.
Q.3 Operating Profit Margin of Birla Corporation Ltd?
Birla Corporation Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.32% for FY-2025 , which is below its 5 year median of 14.85% indicating decreasing margins.
Q.4 Net Profit Margin of Birla Corporation Ltd?
Birla Corporation Ltd Net Profit Margin is 3.2% for FY-2025 , is below with its 5 year median of 4.36%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 9.7 11
Operating Profit Margin 13.32 14.85
Net Profit Margin 3.2 4.36
Q.5 Return on Asset of Birla Corporation Ltd?
Birla Corporation Ltd Return on Asset is 2.05%, which is below its 5 year historical median of 2.95%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Birla Corporation Ltd?
Birla Corporation Ltd Return on equity is 5.03% for FY-2025 , which is below its historical median of 7.79%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Birla Corporation Ltd?
Birla Corporation Ltd Return on capital employed is 7.47% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 13.5%, indicating value preservation.
Q.8 Cash conversion cycle of Birla Corporation Ltd?
Birla Corporation Ltd Cash conversion cycle is 10 days, below its historical median of 11 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.71 0.67
ROE 5.03 7.79
ROCE 7.47 8.66
Cash Conversion Cycle 10 days 11 days
Q.9 Debt to Equity ratio of Birla Corporation Ltd?
Birla Corporation Ltd Debt-to-Equity ratio is 0.56 , which is above with the industry average of 0.39 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Birla Corporation Ltd?
Birla Corporation Ltd Debt to cash flow from operations is 2.01 , which is at a moderate level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Birla Corporation Ltd?
Promoters hold 62.90% of the Birla Corporation Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Birla Corporation Ltd vs industry peers?
Birla Corporation Ltd revenue CAGR is 5.91% , compared to the industry median CAGR of 5.91% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 9,214.5 1,298.5
Gross Profit 893.8 77.3
Operating Profit 1,217 97
Net Profit 295 43
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.71 0.82
ROE 5.03 7.28
ROCE 7.47 9.38
Cash Conversion Cycle (days) 9.5 17

Valuation & price assessment

Q.1 Stock return of Birla Corporation Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 8.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 8.9% -0.1% 0.1% -15.7%
Q.3 Valuation ratios of Birla Corporation Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 13.87 11.47 34.86
Price to Book 1.16 1.22 1.92
Price to Sales 0.75 0.79 1.25
EV to EBITDA 6.36 7.17 11.55

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