Anand Rathi has given Buy recommendation for Birla Corporation with a target price of Rs. 1514 in its research report issued on May 16, 2022

Anand Rathi’s research report on Birla Corporation

With industry-leading capacity utilisation, Birla Corp reported its highest quarterly and yearly sales in Q4 FY22 and FY22, though profitability was hit on high input costa. It is aiming at 30m tpa cement capacity by FY27. The expansion will keep leverage high; we believe, however, its net debt would be in check with greater profitability on various cost optimisations and higher volume growth on the ramping up of capacities at the newly commissioned Mukutban unit.

Outlook

We retain our Buy rating, with a lower target price of Rs1,514 (earlier Rs1,844).

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