NSEI:BIRLACORPN

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Executive Summary

Birla Corporation Limited manufactures and sells cement in India. More Details


Snowflake Analysis

Solid track record with reasonable growth potential and pays a dividend.


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: BIRLACORPN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.7%

BIRLACORPN

-2.8%

IN Basic Materials

-3.8%

IN Market


1 Year Return

7.4%

BIRLACORPN

-7.2%

IN Basic Materials

-1.7%

IN Market

Return vs Industry: BIRLACORPN exceeded the Indian Basic Materials industry which returned -7.9% over the past year.

Return vs Market: BIRLACORPN exceeded the Indian Market which returned -0.8% over the past year.


Shareholder returns

BIRLACORPNIndustryMarket
7 Day-7.7%-2.8%-3.8%
30 Day11.1%-6.2%-2.3%
90 Day9.7%2.3%8.2%
1 Year8.8%7.4%-6.7%-7.2%0.08%-1.7%
3 Year-23.0%-25.6%-10.8%-12.3%1.5%-3.3%
5 Year53.8%46.1%35.2%31.2%41.3%30.9%

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?

11.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BIRLACORPN (₹660.3) is trading above our estimate of fair value (₹234.21)

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 (11.8x) compared to the IN Basic Materials industry average (18.7x).

PE vs Market: BIRLACORPN is good value based on its PE Ratio (11.8x) compared to the Indian market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: BIRLACORPN is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: BIRLACORPN is overvalued based on its PB Ratio (1.1x) compared to the IN Basic Materials industry average (0.9x).


Next Steps

Future Growth

How is Birla forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

26.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BIRLACORPN's forecast earnings growth (26.6% per year) is above the savings rate (7.2%).

Earnings vs Market: BIRLACORPN's earnings (26.6% per year) are forecast to grow faster than the Indian market (26.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BIRLACORPN's revenue (14.3% per year) is forecast to grow faster than the Indian market (11.7% per year).

High Growth Revenue: BIRLACORPN's revenue (14.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BIRLACORPN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Birla performed over the past 5 years?

30.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BIRLACORPN has high quality earnings.

Growing Profit Margin: BIRLACORPN's current net profit margins (6.9%) are higher than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: BIRLACORPN's earnings have grown significantly by 30.2% per year over the past 5 years.

Accelerating Growth: BIRLACORPN's earnings growth over the past year (37.4%) exceeds its 5-year average (30.2% per year).

Earnings vs Industry: BIRLACORPN earnings growth over the past year (37.4%) exceeded the Basic Materials industry -4.6%.


Return on Equity

High ROE: BIRLACORPN's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is Birla's financial position?


Financial Position Analysis

Short Term Liabilities: BIRLACORPN's short term assets (₹26.9B) exceed its short term liabilities (₹21.0B).

Long Term Liabilities: BIRLACORPN's short term assets (₹26.9B) do not cover its long term liabilities (₹52.7B).


Debt to Equity History and Analysis

Debt Level: BIRLACORPN's debt to equity ratio (89.1%) is considered high.

Reducing Debt: BIRLACORPN's debt to equity ratio has increased from 48% to 89.1% over the past 5 years.

Debt Coverage: BIRLACORPN's debt is well covered by operating cash flow (31.3%).

Interest Coverage: BIRLACORPN's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BIRLACORPN's dividend (1.14%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: BIRLACORPN's dividend (1.14%) is low compared to the top 25% of dividend payers in the Indian market (2.28%).


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 (13.4%), BIRLACORPN's dividend payments are thoroughly 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

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

1.7yrs

Average management tenure


CEO

Pracheta Majumdar (76 yo)

1.08yrs

Tenure

₹12,511,000

Compensation

Shri. Pracheta Majumdar has been Chief Executive Officer of Birla Corporation Limited since August 2, 2019. He was the Chief Management Advisor at Birla Corporation Limited since May 20, 2013 until August ...


CEO Compensation Analysis

Compensation vs Market: Pracheta's total compensation ($USD169.97K) is below average for companies of similar size in the Indian market ($USD404.17K).

Compensation vs Earnings: Pracheta's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Pracheta Majumdar
CEO & Wholetime Director1.08yrs₹12.51m0.00065%
₹ 330.4k
Aditya Saraogi
Chief Financial Officer8.17yrs₹14.50m0.00013%
₹ 66.1k
Girish Sharma
Joint President of Indirect Taxes8.17yrs₹6.46mno data
Sandip Ghose
Chief Operating Officer1.42yrsno datano data
Susmita Bhattacharya
Head of Corporate HRno datano datano data
Rajesh Kakkar
President of Chanderia Unitno datano datano data
Asim Chattopadhyay
Executive President of Operation1.42yrsno datano data
Bhaskar Bhattacharya
President of Satna Cement Worksno datano datano data
Uttam Roy
President of Maihar Integrated Unitno datano datano data
P. Paliwal
Joint President of Durgapur Cement Works & Durga Hitech Cement1.67yrsno datano data
Prahlad Choudhary
Senior VP & Unit Head of Kundanganj Unit1.67yrsno datano data
Ghisa Verma
President of Birla Jute Millsno datano datano data

1.7yrs

Average Tenure

Experienced Management: BIRLACORPN's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Pracheta Majumdar
CEO & Wholetime Director1.08yrs₹12.51m0.00065%
₹ 330.4k
Dhruba Ghosh
Independent Non-Executive Director12.92yrs₹550.00k0.00065%
₹ 330.4k
Harsh Lodha
Non-Executive Chairman10.92yrs₹700.00k0.0016%
₹ 833.5k
Deepak Nayyar
Independent Non-Executive Director10.42yrs₹1.00m0.00065%
₹ 330.4k
Vikram Swarup
Independent Non-Executive Director16.42yrs₹1.25m0.00065%
₹ 330.4k
Brij Tandon
Independent Non-Executive Director13.33yrs₹375.00k0.00065%
₹ 330.4k
Anand Bordia
Independent Non-Executive Director14.17yrs₹1.10m0.00065%
₹ 330.4k
Shailaja Chandra
Independent Non-Executive Director5.58yrs₹550.00k0.00065%
₹ 330.4k
Dilip Karnik
Non-Independent Non-Executive Director2.83yrs₹450.00k0.00065%
₹ 330.4k

12.9yrs

Average Tenure

76yo

Average Age

Experienced Board: BIRLACORPN's board of directors are seasoned and experienced ( 12.9 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: BIRLACORPN
  • Exchange: NSEI
  • Founded: 1919
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: ₹50.824b
  • 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 c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 19:29
End of Day Share Price2020/09/22 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.