Birla Corporation Limited (BIRLACORPN) AI Stock Analysis

• Market Cap: ₹60.73B
• Dividend Yield: 0.92%
• Average Volume (3M): 8.48K
• Price to Earnings (P/E): 38.8
• Beta (1Y): 1.41
• Revenue Growth: 6.82%
• EPS Growth: 60.64%
• Country: IN
• Employees: 7,078
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 10.10
• Shares Outstanding: 77,005,340
• 10 Day Avg. Volume: 3,532
• 30 Day Avg. Volume: 8,481
• PEG Ratio: -0.96
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 6.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,300.00
• Price Target Upside: 20.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 61.35
• Revenue Forecast (FY): ₹95.83B

• Rating: 53 Neutral
• Price Target: ₹793.00 ▼(-26.72% Downside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

Overall score is held back primarily by weak technical momentum (price below key DMAs, negative MACD, very low RSI/Stoch) and a high P/E with only modest yield. These are partially offset by stable balance sheet leverage and strong cash flow conversion, though declining revenue and low net margin cap the financial performance score.

Positive Factors

High gross margin

A 66% gross margin signals strong product-level pricing power and effective cost control in cement manufacturing. This large gross margin creates a durable buffer against raw-material and fuel cost swings, supporting mid-term profitability even if volumes fluctuate.

Strong cash generation

Sizable free cash flow and an operating-cash-to-net-income ratio above 5x indicate durable cash conversion from operations. That cash generation supports capex, debt servicing, and strategic investments, giving the company financial flexibility over the next several quarters.

Conservative leverage

A modest debt-to-equity ratio and near-50% equity base reflect a resilient balance sheet. Lower leverage reduces refinancing and liquidity risk, enabling the company to sustain operations, invest in capacity, or absorb demand shocks without materially impairing solvency.

Negative Factors

Declining revenue

A year-over-year revenue decline signals pressure on volumes or realizations in core cement markets. Persistent top-line weakness can erode scale economics and capacity utilization, making it harder to sustain margins and cover fixed costs over the medium term.

Low net margin

A net margin near 3% leaves limited room to absorb higher input or logistic costs, despite healthy gross margins. This constrains retained earnings and shareholder returns, and makes profitability more sensitive to cyclical downturns or competitive price pressure.

Low return on equity

ROE around 4% indicates modest capital efficiency versus peers and limits long-term shareholder value creation. Low ROE may reflect weak conversion of assets into profits and constrains the company's ability to justify reinvestment without improving margins or growth.

Birla Corporation Limited Business Overview & Revenue Model

Company Description

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 cement under the MP Birla Cement Perfect Plus, MP Birla Cement Samrat Advanced, MP Birla Cement Ultimate Ultra, MP Birla Cement Unique, MP Birla Cement Samrat, MP Birla Cement Ultimate, MP Birla Cement Chetak, MP Birla Cement PSC, MP Birla Cement MULTICEM, and MP Birla Cement CONCRECEM brands used in bridges, dams, railway sleepers, reservoirs, industrial buildings, marine structures, cooling towers, metro lines, and airport runways. The company also manufactures various jute products, such as jute yarn, floor and wall coverings, lino hessian products, decorative fabrics, nursery cloths, scrims, jute carpets, non-woven jute felts, hydrocarbon-free bags/cloths, D.W. canvas products, carpet backing cloths, hessian cloths/bags, and sacking bags/cloths, which are used in mats, yarns, ropes, bags, carpets, and panama. In addition, it offers iron and steel castings. The company also exports its products. The company was formerly known as Birla Jute Manufacturing Company Limited and changed its name to Birla Corporation Limited in 1998. Birla Corporation Limited was incorporated in 1919 and is based in Kolkata, India.

How the Company Makes Money

Birla Corporation Limited makes money mainly by producing and selling cement and allied products. Its core revenue stream comes from (1) sales of cement to trade/retail customers (dealers and retailers serving individual home-builders) and (2) sales to non-trade customers such as institutional buyers, contractors, and infrastructure/real-estate projects. Earnings are driven by the volume of cement dispatched and the realizations (net selling price per ton), with profitability influenced by input and logistics costs (e.g., fuel/power, raw materials, and freight) and capacity utilization at its plants. The company also generates revenue from the sale of by-products or related building-material offerings where applicable, but specific breakdowns by product line, named long-term partnerships, or customer concentration details are null.

Birla Corporation Limited Financial Statement Overview

Summary

Financials are satisfactory but mixed: strong gross margin (66.09%) and solid cash generation (free cash flow 12,242m; operating cash flow to net income 5.66) support quality, while revenue declined (-3.63% YoY) and net margin is low (3.17%). Balance sheet is stable with manageable leverage (debt-to-equity 0.50) and a strong equity base (equity ratio 48.94%).

Income Statement

Birla Corporation Limited has shown a mixed performance in its income statement. The gross profit margin for 2025 is robust at 66.09%, indicating strong cost management. However, the net profit margin has decreased from previous years to 3.17%, reflecting lower profitability due to increased expenses. Revenue has declined by 3.63% compared to 2024, suggesting challenges in maintaining sales growth. The EBIT and EBITDA margins are at 34.67% and 14.12% respectively, showing solid operational efficiency despite revenue challenges.

Balance Sheet

The balance sheet of Birla Corporation Limited exhibits stability with a debt-to-equity ratio of 0.50, indicating a balanced approach to leverage. The return on equity stands at 4.21%, reflecting moderate returns for shareholders. The equity ratio is 48.94%, highlighting a strong equity base. Overall, the company's financial position appears stable with manageable debt levels and solid equity.

Cash Flow

The cash flow statement shows a healthy free cash flow of 12,242 million, with a growth rate of 12.29% from 2024. The operating cash flow to net income ratio of 5.66 reflects strong cash generation relative to net income, while the free cash flow to net income ratio is 4.15, indicating efficient cash conversion. The company has managed to improve cash flows even in a challenging revenue environment.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	97.32B	92.14B	96.56B	86.82B	74.61B	67.85B
Gross Profit	74.38B	76.27B	78.82B	74.06B	62.59B	56.73B
EBITDA	14.77B	12.06B	14.27B	7.71B	10.98B	13.53B
Net Income	4.98B	2.95B	4.21B	405.00M	3.99B	6.30B
Balance Sheet
Total Assets	141.20B	143.31B	144.36B	140.72B	138.52B	128.96B
Cash, Cash Equivalents and Short-Term Investments	9.46B	8.22B	7.64B	6.81B	8.01B	7.93B
Total Debt	24.46B	34.89B	39.03B	44.62B	43.26B	41.46B
Total Liabilities	69.73B	73.16B	77.62B	80.91B	78.03B	74.10B
Stockholders Equity	71.47B	70.15B	66.74B	59.81B	60.49B	54.86B
Cash Flow
Free Cash Flow	-104.90M	12.24B	10.90B	1.74B	2.59B	5.25B
Operating Cash Flow	2.13B	16.69B	16.19B	8.05B	10.39B	13.28B
Investing Cash Flow	2.24B	-8.86B	-7.00B	-3.65B	-7.75B	-5.82B
Financing Cash Flow	-5.12B	-8.23B	-9.69B	-3.18B	-2.70B	-7.02B

Birla Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1082.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BIRLACORPN, the sentiment is Negative. The current price of 1082.15 is above the 20-day moving average (MA) of 946.51, above the 50-day MA of 1020.67, and below the 200-day MA of 1191.45, indicating a bearish trend. The MACD of -65.92 indicates Positive momentum. The RSI at 18.62 is Positive, neither overbought nor oversold. The STOCH value of 4.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BIRLACORPN.

Birla Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JKLAKSHMI	61 Neutral	₹72.41B	42.43	―	0.82%	6.13%	31.60%
STARCEMENT	58 Neutral	₹83.54B	30.41	―	0.45%	18.13%	52.87%
PRSMJOHNSN	57 Neutral	₹63.12B	27.99	―	―	6.64%	―
NUVOCO	55 Neutral	₹102.81B	64.48	―	―	5.09%	458.10%
BIRLACORPN	53 Neutral	₹60.73B	38.81	―	0.92%	6.82%	60.64%
INDIACEM	48 Neutral	₹110.09B	-1,262.95	―	―	-4.25%	―

Birla Corporation Limited Corporate Events

Birla Corporation Receives Voluntary ESG Score of 69.3 from SES ESG Research

Birla Corporation Limited has disclosed that SES ESG Research Private Limited has voluntarily assigned the company an Environmental, Social and Governance (ESG) score of 69.3, based solely on fiscal 2025 disclosures and other publicly available data. The rating, which the company did not commission, underscores external recognition of its ESG performance and is being shared with stock exchanges and posted on the company’s website, providing additional transparency for investors and other stakeholders evaluating its sustainability profile.

Birla Corporation Extends Tenure of Senior Executive Rajeev Bhalla by One Year

Birla Corporation Limited has extended the term of service of senior management executive Shri Rajeev Bhalla, President and Unit Head of Birla Jute Mills, by one year to 31 December 2026. A veteran mechanical engineer who began his career with the company in 1983 and has held key leadership roles at several cement plants, Bhalla’s extension signals management’s intent to retain experienced operational leadership, supporting continuity in its jute and cement operations and providing stability for stakeholders amid ongoing industry competition.