Birla Corporation Limited (BIRLACORPN) AI Stock Analysis

• Market Cap: ₹81.04B
• Dividend Yield: 0.92%
• Average Volume (3M): 8.48K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.26
• Revenue Growth: 6.82%
• EPS Growth: 60.64%
• Country: IN
• Employees: 7,078
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 11.70
• 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: ₹1,270.00
• Price Target Upside: 17.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹1,335.00 ▲(23.37% Upside)

The overall stock score of 58 reflects a combination of satisfactory financial performance and bearish technical indicators. The company's stable financial position is offset by declining revenue and profit margins, while technical analysis indicates weak market momentum. Valuation metrics suggest the stock is fairly valued, but the low dividend yield offers limited income potential. Investors should be cautious of the current downward trend and monitor for improvements in profitability and market sentiment.

Positive Factors

Cash Generation

Strong free cash flow growth indicates robust cash generation capabilities, providing the company with flexibility to invest in growth opportunities and manage debt effectively.

Balance Sheet Stability

A balanced debt-to-equity ratio suggests prudent financial management, ensuring the company can withstand economic fluctuations and invest in strategic initiatives.

Operational Efficiency

High EBIT and EBITDA margins reflect effective cost management and operational efficiency, enabling the company to maintain profitability even amidst revenue challenges.

Negative Factors

Declining Revenue

A decline in revenue indicates potential difficulties in market demand or competitive positioning, which could impact long-term growth prospects if not addressed.

Net Profit Margin Pressure

A declining net profit margin suggests increased expenses or pricing pressures, which may hinder the company's ability to generate sustainable profits over time.

Earnings Growth Challenges

Negative EPS growth highlights challenges in increasing profitability, which could affect investor confidence and the company's capacity to reinvest in its business.

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 generates revenue primarily through the sale of cement products, which constitutes the bulk of its income. The company operates several manufacturing plants across India, ensuring a wide distribution network that caters to diverse construction needs. Additionally, Birla Corporation earns revenue from its other business segments, including jute goods and PVC products, although these contribute a smaller portion to the overall earnings. The company benefits from strategic partnerships and collaborations that enhance its production capabilities and market reach. Factors such as strong brand recognition, extensive distribution networks, and a focus on sustainable practices contribute significantly to its financial performance.

Birla Corporation Limited Financial Statement Overview

Summary

Birla Corporation Limited demonstrates a balanced financial profile with strong gross profits and efficient cash flow management. However, declining revenue and net profit margins suggest potential pressures on profitability. The company maintains a stable balance sheet with prudent leverage and solid equity, which provides a buffer against market volatility. Overall, the financial health is satisfactory, but attention to revenue growth and profit margins is necessary for future improvement.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	94.78B	92.14B	96.56B	86.82B	74.61B	67.85B
Gross Profit	77.67B	76.27B	78.82B	74.06B	62.59B	56.73B
EBITDA	13.22B	12.06B	14.27B	7.71B	10.98B	13.53B
Net Income	3.82B	2.95B	4.21B	405.00M	3.99B	6.30B
Balance Sheet
Total Assets	0.00	143.31B	144.36B	140.72B	138.52B	128.96B
Cash, Cash Equivalents and Short-Term Investments	8.22B	8.22B	7.64B	6.81B	8.01B	7.93B
Total Debt	0.00	34.89B	39.03B	44.62B	43.26B	41.46B
Total Liabilities	-70.15B	73.16B	77.62B	80.91B	78.03B	74.10B
Stockholders Equity	70.15B	70.15B	66.74B	59.81B	60.49B	54.86B
Cash Flow
Free Cash Flow	0.00	12.24B	10.90B	1.74B	2.59B	5.25B
Operating Cash Flow	0.00	16.69B	16.19B	8.05B	10.39B	13.28B
Investing Cash Flow	0.00	-8.86B	-7.00B	-3.65B	-7.75B	-5.82B
Financing Cash Flow	0.00	-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: Negative
• RSI: Neutral
• STOCH: Neutral

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 1074.58, below the 50-day MA of 1113.05, and below the 200-day MA of 1221.91, indicating a bearish trend. The MACD of -8.83 indicates Negative momentum. The RSI at 42.62 is Neutral, neither overbought nor oversold. The STOCH value of 31.48 is Neutral, 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	₹92.48B	19.07	―	0.82%	6.13%	31.60%
BIRLACORPN	58 Neutral	₹81.04B	16.32	―	0.92%	6.82%	60.64%
STARCEMENT	58 Neutral	₹86.82B	28.63	―	0.45%	18.13%	52.87%
PRSMJOHNSN	57 Neutral	₹65.01B	35.54	―	―	6.64%	―
NUVOCO	55 Neutral	₹124.24B	46.04	―	―	5.09%	458.10%
INDIACEM	48 Neutral	₹144.72B	1,121.51	―	―	-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.

Birla Corporation Legal Update: Court Stays Injunction

Birla Corporation Limited has announced a significant legal development concerning its operations. The 16th Court of Additional District & Sessions Judge in Alipore has stayed a previous injunction order that had halted the company’s ability to conduct certain voting activities related to adopting a new set of Articles of Association. This legal update allows the company to proceed with its planned activities, potentially impacting its governance and operational strategies.

Birla Corporation Receives Adequate ESG Rating

Birla Corporation Limited has received an ESG (Environmental, Social, and Governance) rating of 55, categorized as Adequate, from ESG Risk Assessments and Insights Limited. This rating was independently assigned based on publicly available information and fiscal 2025 disclosures, reflecting the company’s commitment to transparency in its ESG practices. This development may influence stakeholders’ perception of the company’s sustainability efforts and could impact its market positioning.