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

-2.5%

BIRLACORPN

3.1%

IN Basic Materials

1.6%

IN Market


1 Year Return

-5.1%

BIRLACORPN

-1.3%

IN Basic Materials

0.8%

IN Market

Return vs Industry: BIRLACORPN underperformed the Indian Basic Materials industry which returned -1.3% over the past year.

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


Shareholder returns

BIRLACORPNIndustryMarket
7 Day-2.5%3.1%1.6%
30 Day-9.4%-2.5%1.5%
90 Day-14.8%-13.3%-3.3%
1 Year-3.9%-5.1%-0.7%-1.3%2.7%0.8%
3 Year-27.0%-29.1%-3.6%-5.2%22.0%16.0%
5 Year12.1%6.2%52.2%47.4%42.3%29.3%

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?

12.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: BIRLACORPN (₹525.1) is trading above our estimate of fair value (₹391.98)

Significantly Undervalued: 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 (12.9x) compared to the Basic Materials industry average (18.3x).

PE vs Market: BIRLACORPN is good value based on its PE Ratio (12.9x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: BIRLACORPN is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: BIRLACORPN is good value based on its PB Ratio (0.9x) 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?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BIRLACORPN's forecast earnings growth (9.4% per year) is above the savings rate (7.6%).

Earnings vs Market: BIRLACORPN's earnings (9.4% per year) are forecast to grow slower than the Indian market (18.3% per year).

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

Revenue vs Market: BIRLACORPN's revenue (8.4% per year) is forecast to grow slower than the Indian market (11.4% per year).

High Growth Revenue: BIRLACORPN's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BIRLACORPN's Return on Equity is forecast to be low in 3 years time (7.9%).


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

Earnings Trend: BIRLACORPN's earnings have grown by 12% per year over the past 5 years.

Accelerating Growth: BIRLACORPN's earnings growth over the past year (60.6%) exceeds its 5-year average (12% per year).

Earnings vs Industry: BIRLACORPN earnings growth over the past year (60.6%) exceeded the Basic Materials industry 19.8%.


Return on Equity

High ROE: BIRLACORPN's Return on Equity (7%) is considered low.


Return on Assets

ROA vs Industry: BIRLACORPN's Return on Assets is below or equal to the Basic Materials industry average last year.


Return on Capital Employed

ROCE Improving: BIRLACORPN has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Birla's financial position?


Financial Position Analysis

Short Term Liabilities: BIRLACORPN's short term assets (₹25.0B) exceeds its short term liabilities (₹17.9B)

Long Term Liabilities: BIRLACORPN's short term assets (25.0B) do not cover its long term liabilities (50.5B)


Debt to Equity History and Analysis

Debt Level: BIRLACORPN's debt to equity ratio (90%) is considered high

Reducing Debt: BIRLACORPN's debt to equity ratio has increased from 53.9% to 90% over the past 5 years.

Debt Coverage: BIRLACORPN's debt is well covered by operating cash flow (26.3%).

Interest Coverage: BIRLACORPN's interest payments on its debt are not well covered by EBIT (2.4x 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 0.6x debt).


Next Steps

Dividend

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

1.44%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BIRLACORPN's dividend (1.44%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: BIRLACORPN's dividend (1.44%) is low compared to the top 25% of dividend payers in the Indian market (2.49%).

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 (18.5%), 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?

1.0yrs

Average management tenure


CEO

Pracheta Majumdar (75yo)

0.8yrs

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: Insufficient data to establish whether Pracheta's total compensation is reasonable compared to companies of similar size in the Indian market.

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


Management Age and Tenure

1.0yrs

Average Tenure

59yo

Average Age

Experienced Management: BIRLACORPN's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

12.0yrs

Average Tenure

75yo

Average Age

Experienced Board: BIRLACORPN's board of directors are seasoned and experienced ( 12 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


Management Team

  • Pracheta Majumdar (75yo)

    CEO & Wholetime Director

    • Tenure: 0.8yrs
    • Compensation: ₹17.05m
  • Aditya Saraogi (54yo)

    Chief Financial Officer

    • Tenure: 7.3yrs
    • Compensation: ₹11.90m
  • Girish Sharma

    Joint President of Indirect Taxes

    • Tenure: 7.3yrs
    • Compensation: ₹5.79m
  • Sandip Ghose

    Chief Operating Officer

    • Tenure: 0.5yrs
  • Gautam Ray (59yo)

    President of Commercial

    • Tenure: 1.3yrs
  • Rajesh Kakkar

    President of Chanderia Unit

    • Tenure: 0yrs
  • Asim Chattopadhyay

    Executive President of Operation

    • Tenure: 0.5yrs
  • 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: 12yrs
    • Compensation: ₹750.00k
  • Harsh Lodha (52yo)

    Chairman

    • Tenure: 10yrs
    • Compensation: ₹750.00k
  • Pracheta Majumdar (75yo)

    CEO & Wholetime Director

    • Tenure: 0.8yrs
    • Compensation: ₹17.05m
  • Deepak Nayyar (73yo)

    Independent Non-Executive Director

    • Tenure: 9.5yrs
    • Compensation: ₹1.15m
  • Vikram Swarup (71yo)

    Independent Non-Executive Director

    • Tenure: 15.5yrs
    • Compensation: ₹1.40m
  • Brij Tandon (78yo)

    Independent Non-Executive Director

    • Tenure: 12.4yrs
    • Compensation: ₹1.30m
  • Anand Bordia (75yo)

    Independent Non-Executive Director

    • Tenure: 13.3yrs
    • Compensation: ₹1.25m
  • Shailaja Chandra (75yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: ₹700.00k
  • Dilip Karnik (69yo)

    Non-Independent Non-Executive Director

    • Tenure: 1.9yrs
    • 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: ₹40.301b
  • 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 Analysis2019/10/14 12:46
End of Day Share Price2019/10/14 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.