Birla Corporation Limited

Basic Materials — Building Materials · NSE

₹807.10+₹13.70 (+1.73%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Birla Corporation Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Birla Corporation Limited manufactures and sells cement and clinker in India and internationally. It operates through three segments: Cement, Jute, and Others.

IndustryBuilding Materials

SectorBasic Materials

Employees6,900

Annual revenue₹9,518 Cr

How does it make money?

Turns over ₹9,518 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 6,900 employees supports ₹1.38 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.38 Cr

Who are its competitors?

The closest listed comparisons in its industry are ULTRATECH CEMENT LIMITED, GRASIM INDUSTRIES LTD, AMBUJA CEMENTS LTD, SHREE CEMENT LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 8.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE7.4%

What is the outlook?

12 analysts covering the stock expect revenue to grow about 5.7% and earnings to grow about 18.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+5.7%

Est. earnings growth+18.9%

Analysts12

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +12% while net margin moved +1131% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+12%

Margin effect+1131%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.49 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

63/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

88/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

11.2x

3Y Median

26.0x

40 monthly readings · mean 96.9x · range 11.1x–312.1x

Sector Median

36.2x

median of 4 sector peers

🟢Current valuation is approximately 57% below its 3y median of 26.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 69% below the peer median of 36.2x.

vs. its own history

Cheap

26.0x median over 40 months · -57%

vs. sector peers

Cheap

36.2x median of 4 peers · -69%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.2x

PEG

0.08

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 10.4% to 16.1% over 3 years.
Debt is being paid down
Total debt is down 24% over 3 years.
Cash generation is improving
Free cash flow is up 176% over 3 years.
Return on equity is rising
ROE has improved from 0.7% to 7.6%.
Return on capital is rising
ROCE has improved from 3.2% to 8.6%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 10.4% to 16.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 24% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 57% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 69% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹481 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 3.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 14%✓ 16.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Revenue growth stays above 4% a year✗ 3.8% CAGR
Latest reported year was 7.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹481 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 8.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹6,215 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.2x

Cheap

Cheap against the generic band

P/B Ratio

0.84x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹71.91

Profitable

Profitable on a per-share basis

ROE

7.6%

Weak

Weak capital efficiency

ROCE

8.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.46x

Low

Conservative leverage

Revenue Growth (YoY)

7.8%

Modest

Modest growth

Profit Growth (YoY)

48.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.55%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹481 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

10.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

7.6%

Average

Average margins

Net Margin

5.6%

Average

Average bottom-line conversion

Current Ratio

1.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.49

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

820.8 / 853.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

35.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹8,508 Cr	₹9,470 Cr	₹9,084 Cr	₹9,518 Cr	+3.8%
EBITDA	₹881 Cr	₹1,488 Cr	₹1,284 Cr	₹1,530 Cr	+20.2%
EBITDA Margin	10.4%	15.7%	14.1%	16.1%	—
PAT (Net Profit)	₹41 Cr	₹421 Cr	₹295 Cr	₹558 Cr	+139.7%
EPS	₹5.26	₹54.61	₹38.34	₹72.41	+139.7%
ROE	0.7%	6.3%	4.2%	7.6%	—
ROCE	3.2%	8.0%	6.0%	8.6%	—
Total Debt	₹4,462 Cr	₹3,903 Cr	₹3,489 Cr	₹3,391 Cr	-8.7%
Free Cash Flow	₹174 Cr	₹1,091 Cr	₹1,224 Cr	₹481 Cr	+40.3%

🟢 Revenue has grown at 3.8% a year over 3 years.

🟢 EBITDA has grown at 20.2% a year over 3 years.

🟢 EBITDA Margin has risen from 10.4% to 16.1% over 3 years (+5.7 pts).

🟢 PAT (Net Profit) has grown at 139.7% a year over 3 years.

🟢 EPS has grown at 139.7% a year over 3 years.

🟢 ROE has risen from 0.7% to 7.6% over 3 years (+6.9 pts).

🟢 ROCE has risen from 3.2% to 8.6% over 3 years (+5.4 pts).

🟢 Total Debt has shrunk at 8.7% a year over 3 years.

🟢 Free Cash Flow has grown at 40.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹14,510 Cr

Total Liabilities

₹7,145 Cr

Cash & Equivalents

₹130 Cr

Operating Cash Flow

₹950 Cr

Capex

-₹469 Cr

Shareholding (proxy)

Institutional Holding

20.4%

Insider Holding

64.3%

Corporate Actions

Dividend Rate

₹12.5

Ex-Dividend Date

24 Jul 2026

Analyst Consensus

Recommendations

11 Buy · 3 Hold · 0 Sell

Target Price (Mean)

₹1,160.08

+43.7% vs CMP

Target Range

₹1,030 – ₹1,385

Peer Comparison

Company	P/E	ROE
ULTRATECH CEMENT LIMITED	37.6x	11.1%
GRASIM INDUSTRIES LTD	34.8x	5.5%
AMBUJA CEMENTS LTD	20.4x	7.4%
SHREE CEMENT LIMITED	49.7x	7.0%

Recent News

5 mixed1 general

Birla (NSEI:BIRLACORPN) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Birla Corporation Shares Edge Higher: BIRLACORPN Climbs 1.51% to ₹805.4 - Ichimoku Entry

https://www.siam.in/, 16 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

BIRLACORPN Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Birla Corp shares fall 5% post-Q1 results; stock down 10% in five days

ET Infra, 27 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Pros and Cons of Investing in Birla Corporation Share: M.P. Birla Cement Analysis 2026

Univest, 12 Aug

Birla Corporation shares jump 4% on commencing commercial operations at Bikram Coal Mine

Upstox, 22 JunPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Revenue growth stays above 4% a year · see Key things to watch ↑