NSEI:BIRLACORPN

Stock Analysis Report

Executive Summary

Birla Corporation Limited manufactures and sells cement in India.

Snowflake

Fundamentals

Proven track record average 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


Market Performance


7 Day Return

5.2%

NSEI:BIRLACORPN

3.3%

IN Basic Materials

1.5%

IN Market


1 Year Return

-19.8%

NSEI:BIRLACORPN

-9.5%

IN Basic Materials

-11.2%

IN Market

BIRLACORPN underperformed the Basic Materials industry which returned -9.5% over the past year.

BIRLACORPN underperformed the Market in India which returned -11.2% over the past year.


Share holder returns

BIRLACORPNIndustryMarket
7 Day5.2%3.3%1.5%
30 Day2.3%-3.5%1.0%
90 Day-6.5%-8.1%-5.6%
1 Year-18.8%-19.8%-9.0%-9.5%-9.5%-11.2%
3 Year-6.7%-9.4%0.8%-0.9%19.7%13.7%
5 Year17.0%10.8%47.5%42.9%34.6%21.9%

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

14.29x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Birla's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Birla's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Birla is poor value based on expected growth next year.


Price Based on Value of Assets

Birla is good value based on assets compared to the IN Basic Materials industry average.


Next Steps

Future Growth

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

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Birla's revenue is expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).

Birla's earnings are expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).

Birla's revenue growth is positive but not above the India market average.

Birla's earnings growth is positive but not above the India market average.

Birla's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Birla is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Birla performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (60.6% vs 12%)

Birla's earnings growth has exceeded the IN Basic Materials industry average in the past year (60.6% vs 22.4%).


Return on Equity

Birla has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Birla used its assets less efficiently than the IN Basic Materials industry average last year based on Return on Assets.


Return on Capital Employed

Birla has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Birla's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Birla's level of debt (90%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (53.9% vs 90% 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 2.4x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

1.66%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Birla's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.57%).

Birla's dividend is below the markets top 25% of dividend payers in India (2.35%).

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

Dividends paid are well covered by earnings (5.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Pracheta Majumdar (75yo)

0.7yrs

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

Pracheta's remuneration is lower than average for companies of similar size in India.

Pracheta's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.0yrs

Average Tenure

59yo

Average Age

The average tenure for the Birla management team is less than 2 years, this suggests a new team.


Board Age and Tenure

11.9yrs

Average Tenure

75yo

Average Age

The average tenure for the Birla board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Pracheta Majumdar (75yo)

    CEO & Wholetime Director

    • Tenure: 0.7yrs
    • Compensation: ₹17.05m
  • Aditya Saraogi (54yo)

    Chief Financial Officer

    • Tenure: 7.2yrs
    • Compensation: ₹11.90m
  • Girish Sharma

    Joint President of Indirect Taxes

    • Tenure: 7.2yrs
    • Compensation: ₹5.79m
  • Sandip Ghose

    Chief Operating Officer

    • Tenure: 0.4yrs
  • Gautam Ray (59yo)

    President of Commercial

    • Tenure: 1.3yrs
  • Rajesh Kakkar

    President of Chanderia Unit

    • Tenure: 0yrs
  • Asim Chattopadhyay

    Executive President of Operation

    • Tenure: 0.4yrs
  • Bhaskar Bhattacharya

    President of Satna Cement Works

    • Tenure: 0yrs
  • Susmita Bhattacharya

    Head of Corporate - HR

    • Tenure: 0yrs
  • Uttam Roy

    Unit Head of Maihar

    • Tenure: 0yrs

Board Members

  • Dhruba Ghosh (91yo)

    Independent Non-Executive Director

    • Tenure: 11.9yrs
    • Compensation: ₹750.00k
  • Harsh Lodha (52yo)

    Chairman

    • Tenure: 9.9yrs
    • Compensation: ₹750.00k
  • Pracheta Majumdar (75yo)

    CEO & Wholetime Director

    • Tenure: 0.7yrs
    • Compensation: ₹17.05m
  • Deepak Nayyar (73yo)

    Independent Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: ₹1.15m
  • Vikram Swarup (71yo)

    Independent Non-Executive Director

    • Tenure: 15.4yrs
    • Compensation: ₹1.40m
  • Brij Tandon (78yo)

    Independent Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: ₹1.30m
  • Anand Bordia (75yo)

    Independent Non-Executive Director

    • Tenure: 13.2yrs
    • Compensation: ₹1.25m
  • Shailaja Chandra (75yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: ₹700.00k
  • Dilip Karnik (69yo)

    Non-Independent Non-Executive Director

    • Tenure: 1.8yrs
    • 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: ₹44.636b
  • 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 Analysis2019/09/15 12:45
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
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.