Share of Birla Corporation rose nearly 10 per cent to hit a 52-week high of Rs 1226.60 on BSE in today's intraday trading session.
The stock opened 0.98 per cent higher at Rs 1129.80 against the previous close of Rs 1118.80. The stock has gained 208 per cent in one year and risen 65 per cent since the beginning of this year. Birla Corp's share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages.
As per the share price history, Birla Corporation's share at BSE closed at Rs 995.05 on May 11, 2021. In a week, the stock has delivered nearly 23 per cent returns. On NSE, it hit a fresh 52-week high of Rs 1227.40. Market cap of the firm rose to Rs 9,175.19 crore.
The company reported a net profit of Rs 249.33 crore in Q4. Profit in the year-ago period stood at Rs 194.73 crore. Net sales grew 26 per cent to Rs 2132.6 crore for the quarter ended March 2021 compared to Rs 1689.9 crore in the year-ago period.
For the fiscal year 2021, the net profit stood at Rs 630.14 crore, up 25 per cent as against Rs 505.18 crore in FY20. Revenue from operations declined 1.9 per cent to Rs 6785.45 crore compared to Rs 6915.69 crore in FY20.
The company said that it made up for its loss in production and sales at the beginning of the financial year by aggressively rationalising costs. It also benefited from the better than expected recovery in cement demand from the second quarter onwards, especially in the rural sector, which was largely the outcome of the Union government injecting cash into the economy by boosting infrastructure development.
The company pushed sales of its premium brands, shoring up the share of their sales by volume within the trade segment to 50% for the full year as against 40% in the previous year, on the other, it scaled up sales of regional brands such as Samrat in the East and Samrat Advanced in Uttar Pradesh.
Harsh Vardhan Lodha, Chairman, Birla Corporation said, "In the light of the massive disruptions faced at the beginning of the financial year, FY20-21 wasn't disappointing from the standpoint of profitability. Our performance reflected the resilience we have built over the years to external shocks. We also benefited from the stimulus provided by the government. But in the wake of the second wave of the pandemic, the year ahead looks more challenging. To my mind, India's ability to contain the pandemic through rapid inoculation and other means hold the key to economic revival."
Here's what brokerages say:
Yes Securities has maintained a 'BUY' rating on the stock. It has assigned an EV/EBITDA multiple of 8x on FY23E and arrived at the target price of Rs 1,480/share with a potential upside of 42%.
Edelweiss said, "BCL's upcoming capacities should accelerate volume growth and the company is expected to witness deleveraging FY23 onwards, and thus, we believe further rerating in the stock is imminent. We have rolled overvaluation to FY23E and revised the target price to Rs 1,416/share with 35% upside."
"The ongoing expansion will increase its capacity to 21mn MT by FY23, boosting volume growth visibility. We maintain BUY with an unchanged target price of Rs 1,451 (8.5x Mar'23E consolidated EBITDA)," HDFC Securities Limited said.