Birla Corp shares jump 8% post Q4 earnings; here's what analysts say

Birla Corporation shares rose sharply in Monday's trade after the company recorded strong quarterly numbers. The stock surged 7.62 per cent to hit a day high of Rs 1,678. It was last seen trading 4.21 per cent higher at Rs 1,624.85. Birla Corp reported a consolidated net profit of Rs 193.34 crore for the quarter ending on March 31, 2024 (Q4 FY24), up 127.59 per cent, year-on-year (YoY), from Rs 84.95 crore.

The company's revenue from operations stood at Rs 2,656.43 crore in Q4 FY24, an uptick of 7.87 per cent as against Rs 2,462.57 crore in the year-ago period. Birla Corp's board has also recommended a dividend of Rs 10 per share for FY24.

In the March quarter, the firm achieved a record-high volume of cement sales, reaching 4.85 million tons, marking a 9.4 per cent increase compared to 4.4 million tons sold in the same period last year.

For the entire financial year, the company reported a net profit of Rs 420.56 crore, up 938 per cent from Rs 40.5 crore reported at the end of FY23. Revenue from ops for FY24 was Rs 9,662.72 crore, an 11.3 per cent YoY rise from Rs 8,682.27 crore in the corresponding period last year.

Analysts largely remained positive on the counter. Support on the counter could be seen at Rs 1,620.

"Birla Corp is a good bet even at current levels. Valuation wise, there could be a chance of at least 25-30 per cent catch up," Sharad Avasthi, Head of Research (PCG) at SMIFS, told Business Today TV.

"We've seen a big gap-up in today's opening trade. Those holding the stock should keep a stop loss placed at Rs 1,620 for an upside target of Rs 1,770," said Ratnesh Goyal, Head of Technical Analysis at Arihant Capital.

Birla Corp is the flagship company of the MP Birla Group. It was incorporated as Birla Jute Manufacturing Company Ltd in 1919.