NSEI:BIRLACORPN

Stock Analysis Report

Executive Summary

Birla Corporation Limited manufactures and sells cement in India.

Rewards

PE ratio (15.1x) is below the Basic Materials industry average (16.4x)

Earnings grew by 83.6% over the past year

Pays a reliable dividend of 0.99%

Risk Analysis

Earnings are forecast to decline by an average of -0.02% per year for the next 3 years

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Solid track record average dividend payer.


Similar Companies

Dalmia Bharat

NSEI:DALBHARAT

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: BIRLACORPN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.5%

BIRLACORPN

1.2%

IN Basic Materials

1.9%

IN Market


1 Year Return

41.2%

BIRLACORPN

15.3%

IN Basic Materials

8.1%

IN Market

Return vs Industry: BIRLACORPN exceeded the Indian Basic Materials industry which returned 12.6% over the past year.

Return vs Market: BIRLACORPN exceeded the Indian Market which returned 6.7% over the past year.


Shareholder returns

BIRLACORPNIndustryMarket
7 Day10.5%1.2%1.9%
30 Day28.7%9.3%3.1%
90 Day34.8%7.7%6.5%
1 Year43.0%41.2%16.0%15.3%10.1%8.1%
3 Year13.1%9.9%20.2%18.1%35.1%28.0%
5 Year53.7%45.6%34.9%30.7%36.6%24.2%

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?

15.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BIRLACORPN (₹755.25) is trading above our estimate of fair value (₹400.69)

Significantly Below Fair Value: BIRLACORPN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BIRLACORPN is good value based on its PE Ratio (15.1x) compared to the Basic Materials industry average (16.4x).

PE vs Market: BIRLACORPN is poor value based on its PE Ratio (15.1x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: BIRLACORPN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BIRLACORPN is overvalued based on its PB Ratio (1.2x) compared to the IN Basic Materials industry average (1x).


Next Steps

Future Growth

How is Birla forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-0.02%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BIRLACORPN's earnings are forecast to decline over the next 3 years (-0.02% per year).

Earnings vs Market: BIRLACORPN's earnings are forecast to decline over the next 3 years (-0.02% per year).

High Growth Earnings: BIRLACORPN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BIRLACORPN's revenue (7.6% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: BIRLACORPN's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BIRLACORPN's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has Birla performed over the past 5 years?

16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BIRLACORPN has high quality earnings.

Growing Profit Margin: BIRLACORPN's current net profit margins (5.5%) are higher than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: BIRLACORPN's earnings have grown by 16.3% per year over the past 5 years.

Accelerating Growth: BIRLACORPN's earnings growth over the past year (83.6%) exceeds its 5-year average (16.3% per year).

Earnings vs Industry: BIRLACORPN earnings growth over the past year (83.6%) exceeded the Basic Materials industry 10.3%.


Return on Equity

High ROE: BIRLACORPN's Return on Equity (8.3%) 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: BIRLACORPN's short term assets (₹28.2B) exceed its short term liabilities (₹20.7B).

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


Debt to Equity History and Analysis

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

Reducing Debt: BIRLACORPN's debt to equity ratio has increased from 52.4% to 78.4% over the past 5 years.

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

Interest Coverage: BIRLACORPN's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: BIRLACORPN'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?

0.96%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%0.6%markettop25%2.2%industryaverage0.5%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: BIRLACORPN's dividend (0.99%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: BIRLACORPN's dividend (0.99%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15%), BIRLACORPN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Birla's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Pracheta Majumdar (75yo)

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 ($USD240.57K) is below average for companies of similar size in the Indian market ($USD390.22K).

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


Management Age and Tenure

1.3yrs

Average Tenure

59yo

Average Age

Experienced Management: BIRLACORPN's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

12.3yrs

Average Tenure

75yo

Average Age

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


Insider Trading

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.


Management Team

  • Pracheta Majumdar (75yo)

    CEO & Wholetime Director

    • Tenure: 1yrs
    • Compensation: ₹17.05m
  • Aditya Saraogi (54yo)

    Chief Financial Officer

    • Tenure: 7.5yrs
    • Compensation: ₹11.90m
  • Girish Sharma

    Joint President of Indirect Taxes

    • Tenure: 7.5yrs
    • Compensation: ₹5.79m
  • Sandip Ghose

    Chief Operating Officer

    • Tenure: 0.8yrs
  • Gautam Ray (59yo)

    President of Commercial

    • Tenure: 1.6yrs
  • Rajesh Kakkar

    President of Chanderia Unit

    • Asim Chattopadhyay

      Executive President of Operation

      • Tenure: 0.8yrs
    • Bhaskar Bhattacharya

      President of Satna Cement Works

      • Susmita Bhattacharya

        Head of Corporate - HR

        • Uttam Roy

          President of Maihar Integrated Unit


          Board Members

          • Dhruba Ghosh (91yo)

            Independent Non-Executive Director

            • Tenure: 12.3yrs
            • Compensation: ₹750.00k
          • Harsh Lodha (52yo)

            Chairman

            • Tenure: 10.3yrs
            • Compensation: ₹750.00k
          • Pracheta Majumdar (75yo)

            CEO & Wholetime Director

            • Tenure: 1yrs
            • Compensation: ₹17.05m
          • Deepak Nayyar (73yo)

            Independent Non-Executive Director

            • Tenure: 9.8yrs
            • Compensation: ₹1.15m
          • Vikram Swarup (71yo)

            Independent Non-Executive Director

            • Tenure: 15.8yrs
            • Compensation: ₹1.40m
          • Brij Tandon (78yo)

            Independent Non-Executive Director

            • Tenure: 12.7yrs
            • Compensation: ₹1.30m
          • Anand Bordia (75yo)

            Independent Non-Executive Director

            • Tenure: 13.5yrs
            • Compensation: ₹1.25m
          • Shailaja Chandra (75yo)

            Independent Non-Executive Director

            • Tenure: 4.9yrs
            • Compensation: ₹700.00k
          • Dilip Karnik (69yo)

            Non-Independent Non-Executive Director

            • Tenure: 2.2yrs
            • Compensation: ₹400.00k

          Company Information

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


          Key Information

          • Name: Birla Corporation Limited
          • Ticker: BIRLACORPN
          • Exchange: NSEI
          • Founded: 1919
          • Industry: Construction Materials
          • Sector: Materials
          • Market Cap: ₹61.254b
          • 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 Analysis2020/01/20 12:55
          End of Day Share Price2020/01/20 00:00
          Earnings2019/09/30
          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.