Check Before You Invest : Birla Corporation Ltd

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 5.91%, indicating slower growth.

Q.2 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 5-year historical median of 8.66%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.3 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.4 Return on Equity (ROE) of Birla Corporation Ltd?

Birla Corporation Ltd Return on equity is 5.03% for FY-2025, which is below its 5-year historical median of 7.79%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Birla Corporation Ltd?

Birla Corporation Ltd Cash conversion cycle is 10 days, below its 5-year historical median of 11 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year 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.6 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.7 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.8 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	5-year Historic Median
Gross Profit Margin	9.7	11
Operating Profit Margin	13.32	14.85
Net Profit Margin	3.2	4.36

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.

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 6.22%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-4.6	6.2
Gross Profit Growth	-14.2	NAN
Operating Profit Growth	-15.4	-3.8
Net Profit Growth	-29.9	-9.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.71	0.82
ROE	5.03	7.62
ROCE	7.47	9.4
Cash Conversion Cycle (days)	9.5	23

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 9.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	9.8%	0.6%	-0.6%	-10.5%

Q.3 Valuation ratios of Birla Corporation Ltd vs historical?

The current P/E is lower 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	14.26	27.01	22.85
Price to Book	1.2	1.52	1.92
Price to Sales	0.77	1.04	1.40
EV to EBITDA	6.48	9.79	11.62

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