Fundamental Analysis

BIRLA CORPORATION LTD 

Ticker : 500335
BUY : Rs 829.55
Target : Rs 920

Birla Corporation Limited is primarily engaged in the manufacturing of cement as its core business activity. It also has a significant presence in the jute goods industry. On the consolidated quarterly front, the company reported net sales of Rs 1,776.62 crore for Q3FY21, which is an increase of 3.59 per cent from its net sales of Rs 1,715.05 crore reported for Q3FY20. The operating profit rose by 19.37 per cent to Rs 375.94 crore in Q3FY21 from Rs 314.94 crore posted in Q3FY20. The company gained a net profit of Rs 148.42 crore in Q3FY21, which is a substantial increase of 82.13 per cent compared to the net profit of Rs 81.49 crore gained in Q3FY20. The increasing demand in sectors such as housing, commercial construction & industrial construction can give a boost to the demand in the cement industry. Considering the strong growth in financials and predicted improvement in demand, we recommend ‘BUY’.