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Birla

NSEI:BIRLACORPN
Snowflake Description

Undervalued established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BIRLACORPN
NSEI
₹46B
Market Cap
  1. Home
  2. IN
  3. Materials
Company description

Birla Corporation Limited, together with its subsidiaries, primarily manufactures and sells cement in India. The last earnings update was 2 days ago. More info.


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BIRLACORPN Share Price and Events
7 Day Returns
-8.1%
NSEI:BIRLACORPN
0.3%
IN Basic Materials
-0.5%
IN Market
1 Year Returns
-13.5%
NSEI:BIRLACORPN
11.1%
IN Basic Materials
-2.4%
IN Market
BIRLACORPN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Birla (BIRLACORPN) -8.1% 1.9% 14.9% -13.5% 11.3% 53%
IN Basic Materials 0.3% 1.3% 2.1% 11.1% 14% 72.7%
IN Market -0.5% -2% -4.8% -2.4% 21.3% 31.2%
1 Year Return vs Industry and Market
  • BIRLACORPN underperformed the Basic Materials industry which returned 11.1% over the past year.
  • BIRLACORPN underperformed the Market in India which returned -2.4% over the past year.
Price Volatility
BIRLACORPN
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Birla undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Birla to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Birla.

NSEI:BIRLACORPN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 18.5%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:BIRLACORPN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Basic Materials Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.898 (1 + (1- 35%) (88.11%))
1.276
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.28
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.276 * 8.6%)
18.53%

Discounted Cash Flow Calculation for NSEI:BIRLACORPN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Birla is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:BIRLACORPN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 18.53%)
2020 2,964.00 Analyst x1 2,500.70
2021 1,351.00 Analyst x2 961.66
2022 3,334.00 Analyst x1 2,002.24
2023 13,624.00 Analyst x1 6,902.99
2024 20,026.94 Est @ 47% 8,561.12
2025 27,069.07 Est @ 35.16% 9,762.76
2026 34,345.04 Est @ 26.88% 10,450.73
2027 41,585.15 Est @ 21.08% 10,675.89
2028 48,663.51 Est @ 17.02% 10,540.28
2029 55,563.97 Est @ 14.18% 10,153.72
Present value of next 10 years cash flows ₹72,512.09
NSEI:BIRLACORPN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹55,563.97 × (1 + 7.55%) ÷ (18.53% – 7.55%)
₹544,409.14
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹544,409.14 ÷ (1 + 18.53%)10
₹99,484.98
NSEI:BIRLACORPN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹72,512.09 + ₹99,484.98
₹171,997.07
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹171,997.07 / 77.01
₹2233.57
NSEI:BIRLACORPN Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:BIRLACORPN represents 1.00034x of BSE:500335
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00034x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 2,233.57 x 1.00034
₹2,234.33
Value per share (INR) From above. ₹2,234.33
Current discount Discount to share price of ₹597.00
= -1 x (₹597.00 - ₹2,234.33) / ₹2,234.33
73.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Birla is available for.
Intrinsic value
>50%
Share price is ₹597 vs Future cash flow value of ₹2234.33
Current Discount Checks
For Birla to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Birla's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Birla's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Birla's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Birla's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:BIRLACORPN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹33.20
BSE:500335 Share Price ** BSE (2019-07-19) in INR ₹596.8
India Basic Materials Industry PE Ratio Median Figure of 52 Publicly-Listed Basic Materials Companies 25.29x
India Market PE Ratio Median Figure of 2,834 Publicly-Listed Companies 14.62x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Birla.

NSEI:BIRLACORPN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:500335 Share Price ÷ EPS (both in INR)

= 596.8 ÷ 33.20

17.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Birla is good value based on earnings compared to the IN Basic Materials industry average.
  • Birla is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Birla's expected growth come at a high price?
Raw Data
NSEI:BIRLACORPN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.97x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
19.1%per year
India Basic Materials Industry PEG Ratio Median Figure of 21 Publicly-Listed Basic Materials Companies 1.27x
India Market PEG Ratio Median Figure of 535 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

NSEI:BIRLACORPN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.97x ÷ 19.1%

0.94x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Birla is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Birla's assets?
Raw Data
NSEI:BIRLACORPN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹583.75
BSE:500335 Share Price * BSE (2019-07-19) in INR ₹596.8
India Basic Materials Industry PB Ratio Median Figure of 64 Publicly-Listed Basic Materials Companies 1.18x
India Market PB Ratio Median Figure of 3,669 Publicly-Listed Companies 0.94x
NSEI:BIRLACORPN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:500335 Share Price ÷ Book Value per Share (both in INR)

= 596.8 ÷ 583.75

1.02x

* Primary Listing of Birla.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Birla is good value based on assets compared to the IN Basic Materials industry average.
X
Value checks
We assess Birla's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Basic Materials industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Basic Materials industry average (and greater than 0)? (1 check)
  5. Birla has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Birla expected to grow at an attractive rate?
  • Birla's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Birla's earnings growth is expected to exceed the India market average.
  • Birla's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:BIRLACORPN Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:BIRLACORPN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 19.1%
NSEI:BIRLACORPN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 7.8%
India Basic Materials Industry Earnings Growth Rate Market Cap Weighted Average 25.9%
India Basic Materials Industry Revenue Growth Rate Market Cap Weighted Average 10.3%
India Market Earnings Growth Rate Market Cap Weighted Average 17%
India Market Revenue Growth Rate Market Cap Weighted Average 9.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:BIRLACORPN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:BIRLACORPN Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-03-31 14,624
2022-03-31 13,334
2021-03-31 76,518 10,818 3,820 4
2020-03-31 70,863 9,119 3,521 5
NSEI:BIRLACORPN Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 65,487 10,641 2,557
2018-12-31 63,310 2,586
2018-09-30 61,602 2,094
2018-06-30 59,311 1,946
2018-03-31 57,300 8,049 1,539
2017-12-31 55,037 1,237
2017-06-30 48,999 1,682
2017-03-31 43,477 6,773 2,195

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Birla's earnings are expected to grow by 19.1% yearly, however this is not considered high growth (20% yearly).
  • Birla's revenue is expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:BIRLACORPN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Birla Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:BIRLACORPN Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-03-31
2022-03-31
2021-03-31 49.66 63.80 39.60 4.00
2020-03-31 45.85 59.00 36.10 4.00
NSEI:BIRLACORPN Past Financials Data
Date (Data in INR Millions) EPS *
2019-03-31 33.20
2018-12-31 33.63
2018-09-30 27.20
2018-06-30 25.27
2018-03-31 19.99
2017-12-31 16.05
2017-06-30 21.85
2017-03-31 28.50

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Birla is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Birla's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Birla has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Birla performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Birla's growth in the last year to its industry (Basic Materials).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Birla's year on year earnings growth rate has been positive over the past 5 years.
  • Birla's 1-year earnings growth exceeds its 5-year average (66.1% vs 9%)
  • Birla's earnings growth has exceeded the IN Basic Materials industry average in the past year (66.1% vs 4.7%).
Earnings and Revenue History
Birla's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Birla Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:BIRLACORPN Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 65,487.30 2,556.90 4,447.20
2018-12-31 63,309.68 2,586.18 5,982.30
2018-09-30 61,601.98 2,094.28 5,878.60
2018-06-30 59,311.28 1,945.98 5,360.50
2018-03-31 57,299.70 1,539.40 4,330.40
2017-12-31 55,036.97 1,237.14 7,667.97
2017-06-30 48,998.67 1,682.34 5,201.17
2017-03-31 43,476.67 2,194.64 3,541.97
2016-03-31 32,681.57 1,677.25 2,770.90
2015-03-31 32,098.92 1,752.39 2,569.20
2014-03-31 30,163.52 1,298.23 8,900.58
2013-03-31 26,029.59 2,702.82 7,318.29

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Birla has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Birla used its assets less efficiently than the IN Basic Materials industry average last year based on Return on Assets.
  • Birla has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Birla's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Basic Materials industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Birla has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Birla's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Birla's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Birla is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Birla's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Birla's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Birla Company Filings, last reported 3 months ago.

NSEI:BIRLACORPN Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 44,952.60 40,460.50 7,356.50
2018-12-31
2018-09-30
2018-06-30 42,798.50 41,304.59 6,319.42
2018-03-31 42,798.50 41,303.40 6,319.90
2017-12-31
2017-06-30 33,050.16 42,549.39 6,479.43
2017-03-31 32,862.74 42,548.07 6,435.88
2016-03-31 29,253.38 12,811.19 17,378.35
2015-03-31 26,269.81 13,021.78 14,234.41
2014-03-31 25,290.93 14,012.99 14,844.33
2013-03-31 24,529.90 12,260.46 6,561.52
  • Birla's level of debt (90.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (55.4% vs 90.1% today).
  • Debt is well covered by operating cash flow (26.3%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Birla's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Birla has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.26%
Current annual income from Birla dividends. Estimated to be 1.54% next year.
If you bought ₹2,000 of Birla shares you are expected to receive ₹25 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Birla's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.56%).
  • Birla's dividend is below the markets top 25% of dividend payers in India (2.23%).
Upcoming dividend payment

Purchase Birla before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:BIRLACORPN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
India Basic Materials Industry Average Dividend Yield Market Cap Weighted Average of 41 Stocks 0.5%
India Market Average Dividend Yield Market Cap Weighted Average of 1446 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.6%
India Top 25% Dividend Yield 75th Percentile 2.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:BIRLACORPN Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2023-03-31
2022-03-31
2021-03-31 9.35 2.00
2020-03-31 9.00 2.00
NSEI:BIRLACORPN Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-07-17 7.500 1.238
2018-06-22 6.500 1.090
2017-07-10 6.500 0.711
2017-05-26 6.500 0.736
2016-06-13 6.000 0.906
2016-05-06 6.000 1.508
2015-06-05 6.000 1.437
2015-05-07 6.000 1.470
2014-05-08 6.000 1.366
2013-05-20 7.000 2.944
2012-11-09 6.000 2.187
2012-07-25 6.000 2.547
2011-10-31 6.000 2.284
2011-06-28 6.000 1.853
2010-06-30 7.000 1.958
2009-10-23 5.000 1.417
2009-05-07 4.500 1.790

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Birla's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.3x coverage).
X
Income/ dividend checks
We assess Birla's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Birla afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Birla has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bachh Nahar
COMPENSATION ₹42,640,000
AGE 68
TENURE AS CEO 7 years
CEO Bio

Mr. Bachh Raj Nahar, B.Com, FCA, has been the Managing Director at Birla Corporation Limited since July 28, 2012. Mr. Nahar served as the Chief Executive Officer at Birla Corporation Limited since August 3, 2006. He served as an Executive President at Birla Corporation Limited. He has been Non-Executive Director of Universal Cables, Ltd. since May 19, 2014. He serves as a Director of Budge Budge Floorcoverings Ltd. and Talavadi Cements Ltd. He has been an Executive Director of Birla Corporation Limited since August 3, 2006. He served as an Independent Non-Executive Director of Birla Ericsson Optical Ltd. from October 27, 2004 to May 11, 2009. He served as an Executive Director of Essar Investment Ltd., Mumbai. Mr. Nahar holds B.Com and is a Fellow Member of Institute of Chartered Accountants of India.

CEO Compensation
  • Bachh's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Bachh's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Birla management team in years:

6.2
Average Tenure
63.5
Average Age
  • The average tenure for the Birla management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Bachh Nahar

TITLE
MD & Executive Director
COMPENSATION
₹43M
AGE
68
TENURE
7 yrs

Aditya Saraogi

TITLE
Chief Financial Officer
COMPENSATION
₹12M
AGE
54
TENURE
7 yrs

Girish Sharma

TITLE
Joint President of Indirect Taxes
COMPENSATION
₹5M
TENURE
7 yrs

Pracheta Majumdar

TITLE
Chief Management Advisor & Whole Time Director
COMPENSATION
₹12M
AGE
75
TENURE
6.2 yrs

Sandip Ghose

TITLE
Chief Operating Officer
TENURE
0.3 yrs

Rajesh Kakkar

TITLE
President of Chanderia Unit

Asim Chattopadhyay

TITLE
Executive President of Operation
TENURE
0.3 yrs

Gautam Ray

TITLE
President of Commercial
AGE
59
TENURE
1.1 yrs

Bhaskar Bhattacharya

TITLE
Unit Head of Satna

Susmita Bhattacharya

TITLE
Head of Corporate - HR
Board of Directors Tenure

Average tenure and age of the Birla board of directors in years:

12
Average Tenure
74
Average Age
  • The average tenure for the Birla board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Harsh Lodha

TITLE
Chairman
COMPENSATION
₹600K
AGE
52
TENURE
9.8 yrs

Bachh Nahar

TITLE
MD & Executive Director
COMPENSATION
₹43M
AGE
68
TENURE
12.9 yrs

Pracheta Majumdar

TITLE
Chief Management Advisor & Whole Time Director
COMPENSATION
₹12M
AGE
75
TENURE
15.8 yrs

Vikram Swarup

TITLE
Independent Non-Executive Director
COMPENSATION
₹1M
AGE
71
TENURE
15.3 yrs

Brij Tandon

TITLE
Independent Non-Executive Director
COMPENSATION
₹1M
AGE
78
TENURE
12.2 yrs

Dhruba Ghosh

TITLE
Independent Non-Executive Director
COMPENSATION
₹550K
AGE
91
TENURE
11.8 yrs

Anand Bordia

TITLE
Independent Non-Executive Director
COMPENSATION
₹450K
AGE
75
TENURE
13 yrs

Deepak Nayyar

TITLE
Independent Non-Executive Director
COMPENSATION
₹900K
AGE
73
TENURE
9.3 yrs

Shailaja Chandra

TITLE
Independent Non-Executive Director
COMPENSATION
₹500K
AGE
75
TENURE
4.4 yrs

Dilip Karnik

TITLE
Non-Independent Non-Executive Director
AGE
69
TENURE
1.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Birla's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Birla has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Birla (NSE:BIRLACORPN) A Risky Investment?

Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. … So the logical step is to look at the proportion of that EBIT that is matched by actual free cash flow. … Our View Birla's conversion of EBIT to free cash flow was a real positive on this analysis, as was its EBIT growth rate.

Simply Wall St -

Examining Birla Corporation Limited’s (NSE:BIRLACORPN) Weak Return On Capital Employed

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Birla: 0.064 = ₹6.1b ÷ (₹113b - ₹18b) (Based on the trailing twelve months to March 2019.) So, Birla has an ROCE of 6.4%.

Simply Wall St -

Is Birla Corporation Limited's (NSE:BIRLACORPN) 5.7% ROE Better Than Average?

One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.057 in profit. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Birla: 5.7% = ₹2.6b ÷ ₹45b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company.

Simply Wall St -

What Do Analysts Think About Birla Corporation Limited's (NSE:BIRLACORPN) Earnings Outlook?

Below, I've presented key growth figures on how market analysts perceive Birla's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. … See our latest analysis for Birla Analysts' expectations for next year seems optimistic, with earnings growing by a robust 27%. … NSEI:BIRLACORPN Past and Future Earnings, May 22nd 2019 While it’s informative understanding the growth rate year by year relative to today’s figure, it may be more insightful to analyze the rate at which the business is moving on average every year.

Simply Wall St -

Is Birla Corporation Limited's (NSE:BIRLACORPN) Growth Strong Enough To Justify Its May Share Price?

Birla is trading at quite low price-to-earnings (PE) ratio of 16.49x. … However, seeing as Birla is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio. … A PE ratio of 16.49x and expected year-on-year earnings growth of 15% give Birla an acceptable PEG ratio of 1.07x.

Simply Wall St -

Does Birla Corporation Limited (NSE:BIRLACORPN) Have A Good P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … How Do I Calculate Birla's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is There Now An Opportunity In Birla Corporation Limited (NSE:BIRLACORPN)?

Birla Corporation Limited (NSE:BIRLACORPN), which is in the basic materials business, and is based in India,. … As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at Birla’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

How Do Analysts See Birla Corporation Limited (NSE:BIRLACORPN) Performing Over The Next Year?

After Birla Corporation Limited's (NSE:BIRLACORPN) earnings announcement in December 2018,. … with earnings expected to grow by 1.3% in the upcoming year … the higher past 5-year average growth rate of 7.4%

Simply Wall St -

Should Birla (NSE:BIRLACORPN) Be Disappointed With Their 80% Profit?

However we are not very impressed because the share price is only up 80%, less than the market return of 91%. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During five years of share price growth, Birla achieved compound earnings per share (EPS) growth of 15% per year.

Simply Wall St -

Is Birla Corporation Limited's (NSE:BIRLACORPN) CEO Pay Fair?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Bachh Nahar's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Birla Corporation Limited has a market cap of ₹40b, and is paying total annual CEO compensation of ₹43m.

Simply Wall St -

Company Info

Description

Birla Corporation Limited, together with its subsidiaries, primarily manufactures and sells cement in India. The company operates through three segments: Cement, Jute, and Others. It offers Portland Pozzolana cement, ordinary Portland cement, and Portland slag cement (PSC) under the MP Birla Cement Unique, MP Birla Cement Samrat, MP Birla Cement PSC, M P Birla Cement Perfect, MP Birla Cement Ultimate, MP Birla Cement Chetak, MP Birla Cement Concrecem, and MP Birla Cement Multicem 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, 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, as well as floor and wall covering products, which are used in mats, ropes, yarns, bags, carpets, and panama. In addition, it offers auto trims, as well as iron and steel castings. Birla Corporation Limited 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.

Details
Name: Birla Corporation Limited
BIRLACORPN
Exchange: NSEI
Founded: 1919
₹45,956,791,089
77,005,347
Website: http://www.birlacorporation.com
Address: Birla Corporation Limited
1, Shakespeare Sarani,
A.C. Market,
Kolkata,
West Bengal, 700071,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 500335 Ordinary Shares Mumbai Stock Exchange IN INR 26. Apr 2000
NSEI BIRLACORPN Ordinary Shares National Stock Exchange of India IN INR 26. Apr 2000
Number of employees
Current staff
Staff numbers
0
Birla employees.
Industry
Construction Materials
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 12:47
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/07/17
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.