Fundamental Analysis

BIRLA CORPORATION LTD.

Ticker : 500335
BUY :  Rs 1,437.10
Target : Rs 1,600

Birla Corporation Limited is an India-based flagship company, which was initially a jute manufacturing company, but over time, it grew to operate four main divisions i.e. cement, jute, linoleum, and auto trim. On the consolidated quarterly front, the company recorded a strong increase in net sales and operating income, which stood at Rs 1,749.11 crore for Q1FY22 as compared to the net sales & operating income of Rs 1,221.97 crore reported for Q1FY21, clocking gains of 43.14 per cent. The operating profit stood at Rs 352.90 crore in Q1FY22 as against Rs 252.16 crore posted in Q1FY21. The company's net profit recorded a significant rise being at Rs 65.77 crore in Q1FY21 improving to a net profit of Rs 141.51 crore recorded in Q1FY22. On the back of the company’s healthy capacity expansion plans to increase its annual cement production capacity to 30 million tonnes (mt) by 2027 and projected stronger demand for cement, we recommend BUY.