Motilal Oswal has buy call on
Birla Corporation with a target price of Rs 1330. The current market price of Birla Corporation Ltd. is Rs 999.25.
Birla Corporation Ltd., incorporated in the year 1919, is a Mid Cap company (having a market cap of Rs 7775.61 Crore) operating in Cement sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 2146.12 Crore, up 17.74 % from last quarter Total Income of Rs 1822.82 Crore and up 24.92 % from last year same quarter Total Income of Rs 1718.03 Crore. Company reported net profit after tax of Rs 249.33 Crore in latest quarter.
The valuation is attractive at 5.8x FY23E EV/EBITDA (~15% discount to its 10-year average) and USD68/t of capacity (~30% discount to replacement cost). It values BCORP at 7x FY23E EV/EBITDA to arrive at TP of INR1,330.