BSE:500335

Stock Analysis Report

Executive Summary

Birla Corporation Limited manufactures and sells cement in India.


Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has Birla's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500335 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

500335

-2.1%

IN Basic Materials

-3.9%

IN Market


1 Year Return

54.3%

500335

9.8%

IN Basic Materials

4.5%

IN Market

Return vs Industry: 500335 exceeded the Indian Basic Materials industry which returned 8.6% over the past year.

Return vs Market: 500335 exceeded the Indian Market which returned 5.2% over the past year.


Shareholder returns

500335IndustryMarket
7 Day-2.5%-2.1%-3.9%
30 Day-1.6%-5.1%-3.9%
90 Day10.0%1.8%-2.1%
1 Year56.3%54.3%10.4%9.8%6.4%4.5%
3 Year6.7%3.7%7.5%5.7%19.4%12.8%
5 Year72.1%63.0%27.5%23.7%28.2%16.6%

Price Volatility Vs. Market

How volatile is Birla's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Birla undervalued compared to its fair value and its price relative to the market?

12.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 500335 (₹718.95) is trading below our estimate of fair value (₹824.82)

Significantly Below Fair Value: 500335 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 500335 is good value based on its PE Ratio (12.6x) compared to the Basic Materials industry average (15.2x).

PE vs Market: 500335 is good value based on its PE Ratio (12.6x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: 500335 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 500335 is overvalued based on its PB Ratio (1.2x) compared to the IN Basic Materials industry average (0.8x).


Next Steps

Future Growth

How is Birla forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500335's forecast earnings growth (11.5% per year) is above the savings rate (6.5%).

Earnings vs Market: 500335's earnings (11.5% per year) are forecast to grow slower than the Indian market (20.4% per year).

High Growth Earnings: 500335's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500335's revenue (8.5% per year) is forecast to grow slower than the Indian market (9% per year).

High Growth Revenue: 500335's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500335's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has Birla performed over the past 5 years?

20.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500335 has high quality earnings.

Growing Profit Margin: 500335's current net profit margins (6.2%) are higher than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: 500335's earnings have grown by 20% per year over the past 5 years.

Accelerating Growth: 500335's earnings growth over the past year (69.6%) exceeds its 5-year average (20% per year).

Earnings vs Industry: 500335 earnings growth over the past year (69.6%) exceeded the Basic Materials industry 21.9%.


Return on Equity

High ROE: 500335's Return on Equity (9.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Birla's financial position?


Financial Position Analysis

Short Term Liabilities: 500335's short term assets (₹28.2B) exceed its short term liabilities (₹20.7B).

Long Term Liabilities: 500335's short term assets (₹28.2B) do not cover its long term liabilities (₹50.5B).


Debt to Equity History and Analysis

Debt Level: 500335's debt to equity ratio (78.4%) is considered high.

Reducing Debt: 500335's debt to equity ratio has increased from 51% to 78.4% over the past 5 years.

Debt Coverage: 500335's debt is well covered by operating cash flow (28.6%).

Interest Coverage: 500335's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: 500335 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500335's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Birla's current dividend yield, its reliability and sustainability?

1.04%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%0.6%markettop25%2.7%industryaverage0.5%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: 500335's dividend (1.04%) is higher than the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: 500335's dividend (1.04%) is low compared to the top 25% of dividend payers in the Indian market (2.67%).


Stability and Growth of Payments

Stable Dividend: 500335's dividends per share have been stable in the past 10 years.

Growing Dividend: 500335's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.2%), 500335's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500335's dividends in 3 years are forecast to be thoroughly covered by earnings (14.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Pracheta Majumdar (75yo)

1.1yrs

Tenure

₹17,048,000

Compensation

Shri. Pracheta Majumdar has been Chief Executive Officer of Birla Corporation Limited since 2019. He was the Chief Management Advisor at Birla Corporation Limited since May 20, 2013 until 2019. Shri. Majum ...


CEO Compensation Analysis

Compensation vs Market: Pracheta's total compensation ($USD238.17K) is below average for companies of similar size in the Indian market ($USD396.01K).

Compensation vs Earnings: Pracheta's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Pracheta Majumdar
CEO & Wholetime Director1.1yrs₹17.05m0.00065% 362.9k
Aditya Saraogi
Chief Financial Officer7.6yrs₹11.90m0.00013% 72.6k
Girish Sharma
Joint President of Indirect Taxes7.6yrs₹5.79mno data
Sandip Ghose
Chief Operating Officer0.8yrsno datano data
Rajesh Kakkar
President of Chanderia Unit0yrsno datano data
Asim Chattopadhyay
Executive President of Operation0.8yrsno datano data
Gautam Ray
President of Commercial1.7yrsno datano data
Bhaskar Bhattacharya
President of Satna Cement Works0yrsno datano data
Susmita Bhattacharya
Head of Corporate - HR0yrsno datano data
Uttam Roy
President of Maihar Integrated Unit0yrsno datano data

1.4yrs

Average Tenure

59yo

Average Age

Experienced Management: 500335's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Pracheta Majumdar
CEO & Wholetime Director1.1yrs₹17.05m0.00065% 362.9k
Dhruba Ghosh
Independent Non-Executive Director12.3yrs₹750.00k0.00065% 362.9k
Harsh Lodha
Chairman10.3yrs₹750.00k0.0016% 915.7k
Deepak Nayyar
Independent Non-Executive Director9.8yrs₹1.15m0.00065% 362.9k
Vikram Swarup
Independent Non-Executive Director15.8yrs₹1.40m0.00065% 362.9k
Brij Tandon
Independent Non-Executive Director12.8yrs₹1.30m0.00065% 362.9k
Anand Bordia
Independent Non-Executive Director13.6yrs₹1.25m0.00065% 362.9k
Shailaja Chandra
Independent Non-Executive Director5yrs₹700.00k0.00065% 362.9k
Dilip Karnik
Non-Independent Non-Executive Director2.3yrs₹400.00k0.00065% 362.9k

12.3yrs

Average Tenure

75yo

Average Age

Experienced Board: 500335's board of directors are seasoned and experienced ( 12.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Birla Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Birla Corporation Limited
  • Ticker: 500335
  • Exchange: BSE
  • Founded: 1919
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: ₹55.833b
  • Shares outstanding: 77.01m
  • Website: https://www.birlacorporation.com

Location

  • Birla Corporation Limited
  • 1, Shakespeare Sarani
  • 2nd Floor
  • Kolkata
  • West Bengal
  • 700071
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500335BSE (Mumbai Stock Exchange)YesOrdinary SharesININRApr 2000
BIRLACORPNNSEI (National Stock Exchange of India)YesOrdinary SharesININRApr 2000

Biography

Birla Corporation Limited manufactures and sells cement in India. The company operates through three segments: Cement, Jute, and Others. It offers ordinary Portland, Portland Pozzolana, and Portland slag cement under the MP Birla Cement Perfect Plus, MP Birla Cement Samrat Advanced, MP Birla Cement Ultimate Ultra, MP Birla Cement Unique, MP Birla Cement Samrat, MP Birla Cement Ultimate, MP Birla Cement Chetak, MP Birla Cement PSC, MP Birla Cement MULTICEM, and MP Birla Cement CONCRECEM brand names that are used in bridges, dams, railway sleepers, reservoirs, industrial buildings, marine structures, cooling towers, metro lines, and airport runways. The company also manufactures various jute products, such as jute yarn, floor and wall coverings, lino hessian products, decorative fabrics, nursery cloths, scrims, jute carpets, non-woven jute felts, hydrocarbon-free bags/cloths, D.W. canvas products, carpet backing cloths, hessian cloths/bags, and sacking bags/cloths, which are used in mats, ropes, yarns, bags, carpets, and panama. In addition, it offers auto trims, as well as iron and steel castings. The company also exports its products. The company was formerly known as Birla Jute Manufacturing Company Limited and changed its name to Birla Corporation Limited in 1998. Birla Corporation Limited was incorporated in 1919 and is based in Kolkata, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 12:39
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.