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Birla Corporation Ltd. Stock Analysis

Mid Cap
Evaluated by 1729 users | BSE: 500335 | NSE: BIRLACORPN |
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Birla Corporation Limited is the flagship Company of the M.P. Birla Group. Incorporated as Birla Jute Manufacturing Company Limited in 1919, it was Late Mr. Madhav Prasad Birla who gave shape to it. As Chairman of the Company, he transformed it from a...

1. Right Stock
Somewhat Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Birla Corporation Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 12.48%8.34%8.17%4.78%4.78%4.42%6.27%5.25%5.88%8.56%
Value Creation Index -0.15-0.45-0.46-0.68-0.68-0.71-0.58-0.65-0.61-0.43
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,1542,2872,6033,0163,2103,2684,3485,7306,5496,916
Y-o-Y Gr. Rt.-6.2%13.8%15.9%6.4%1.8%33%31.8%14.3%5.6%
Adjusted EPS (Rs.) 39.8429.7931.5715.8317.2715.8622.6720.0631.0262.73
Y-o-Y Gr. Rt.--25.2%6%-49.9%9.1%-8.2%42.9%-11.5%54.6%102.2%
Book Value per Share (Rs.) 266.51290.66317.59327.48340.21379.88426.76449.18477.06517.29
Adjusted Net Profit 307229243122133122175154239483
Net Op. Cash Flow (Rs. Cr.) 2492451963592822496778051,0641,341
Debt to Cash Flow from Ops 3.84.646.243.914.625.156.285.133.813.19
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Birla Corporation Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 13.8%16.6%16.7%5.6%
Adjusted EPS 5.2%29.4%40.4%102.2%
Book Value per Share 7.78.76.68.4
Share Price 11.9% 9.4% -13.2% 14.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 15.9210.6610.354.895.164.45.624.085.4410.39
Operating Profit Margin (%) 20.5415.8815.269.089.499.1414.7614.4114.7819.53
Net Profit Margin (%) 14.2410.039.344.044.143.744.022.73.656.99
Debt to Equity 0.460.510.50.560.50.441.291.191.11.07
Working Capital Days 8798107108109109100114117113
Cash Conversion Cycle 15414946414427181718
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 62.90%
Institutions 18.53%
Non-Institutions 18.57%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Birla Corporation Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Birla Corporation Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Birla Corporation Ltd.'s performance infers:

Birla Corporation Ltd. earnings have grown by 29.4%, whereas share price has appreciated 9.4% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Birla Corporation Ltd. share prices over the last 10 years. Here is what we found out:

Birla Corporation Ltd. share price has appreciated 7.2% annually over the past ten years.

Birla Corporation Limited is the flagship Company of the M.P. Birla Group. Incorporated as Birla Jute Manufacturing Company Limited in 1919, it was Late Mr. Madhav Prasad Birla who gave shape to it. As Chairman of the Company, he transformed it from a manufacturer of jute goods to a leading multi-product corporation with widespread activities. Under the Chairmanship of Mrs. Priyamvada Birla, the Company crossed the Rs. 1,300 - crore turnover mark and the name

Birla Corporation Limited is the flagship Company of the M.P. Birla Group. Incorporated as Birla Jute Manufacturing Company Limited in 1919, it was Late Mr. Madhav Prasad Birla who gave shape to it. As Chairman of the Company, he transformed it from a manufacturer of jute goods to a leading multi-product corporation with widespread activities. Under the Chairmanship of Mrs. Priyamvada Birla, the Company crossed the Rs. 1,300 - crore turnover mark and the name was changed to Birla Corporation Limited in 1998.

After the demise of Mrs. Priyamvada Birla, the Company continued to consolidate in terms of profitability, competitiveness and growth under the leadership of Mr. Rajendra S. Lodha, late Chairman of the M.P. Birla Group. Under his leadership, the Company posted its best ever results in the years ended 31.3.2006, 31.3.2007 and 31.3.2008. The Company continued to record impressive growth in 2008-09 and 2009-10.

Business area of the company

The company is primarily engaged in the manufacturing of cement as its core business activity. It has significant presence in the jute goods industry as well.

Awards and recognition

2016-17

  • Company’s Cement Unit: Chanderia Cement Works has received “Certificate of Excellence” in maintaining harmonious employer and employee relation, effective productivity levels and Corporate Social Responsibility by the Employers’ Association of Rajasthan, Jaipur.

2017-18

  • The Chanderia Unit has been awarded the Certificate of Appreciation by the Department of Women & Child Development, Govt. of Rajasthan, Chanderia for its significant contribution in the field of “BAL VIKAS PROJECTS” (Rural).
  • The Durgapur Unit of the Company has received “QCFI Best Private Sector Organization” award during the year and also received “Excellence” award “5-S” team at the Galaxy 31st National Convention on Quality Concept organised by QCFI.
  • Birla Jute Mills, Birlapur has got recognition for sincere efforts & superior performance of vendors of jute bags for coffee packing from Tata Coffee Limited.

2018-19

  • The Satna Unit has won CSR Platinum Award.
  • The Durgapur Unit has received Excellence award from National Convention on Quality Concepts, Gwalior.
  • Chanderia Unit has received Award from Quality Circle Forum of India, Hyderabad, for various initiatives undertaken by the Unit in the areas of environment.
  • Chanderia Unit has received Award in the field of Environment Excellent and Best Practices in Cement Sector by Apex India Foundation, New Delhi.

2019-20

  • Satna Unit of the Company won CSR Platinum Award 2019.
  • Durgapur Unit received one Gold award and two Silver awards at Quality Circle, Durgapur Chapter Convention.
  • Chanderia Unit received 2nd Award For fly ash utilization during “fly ash utilization conference 2020” by Mission Energy Foundation in February, 2020.
    Chanderia Unit received Rajasthan Energy Conservation Award - 2019 under cement category for excellent efforts in energy conservation by Government Energy Department, Jaipur in December, 2019.
  • Chanderia Unit received Power Plant Performance Award under category LIFE TIME ACHIEVEMENT AWARD for prolong continuous efforts in NTPP and WHRS presented by M/s. Mission Energy at Delhi on 28th June, 2019.
  • Chanderia Unit received BHAMASHAH Award - 2019 for effective contribution in the field of education under CSR Presented by District Administration, Chittorgarh.
  • Chanderia Unit received Birla Cement Works, Chanderia has received the award with “Shiksha Shree” for the support provided to Govt. Education under CSR.

History and milestones

  • 1919: Foundation of Birla Jute Mills, Birlapur, the only Indian-owned jute mill to have completed 100 years.
  • 1957: Foundation of Satna Cement Works. Birthplace of Samrat Cement.
  • 1967: Foundation of Birla Cement Works. Chanderia Cement Works joined ranks soon after.
  • 1974: Foundation of Durgapur Cement Works. Durga Hi-Tech followed.
  • 1998: Foundation of Raebareli Cement Works followed by Raebareli Hi-Tech Cement Works.
  • 2016: Acquisition of RCCPL in Maihar, Kundanganj & Butibori, taking footprints of BCL across 12 states, with a capacity of 15.5 MTPA.
  • 2016: Launch of MP Birla Cement brand identity, and new MP Birla Group logo.
  • 2018: Celebrating 100 years of Syt. Madhav Prasadji Birla.
  • 2019: Completion of 100 years with pathbreaking performance.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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