Birla Corp - Near-Term Headwinds: HDFC Securities

HDFC Securities Institutional Equities

We maintain a Buy rating on Birla Corporation Ltd. with an unchanged target price of Rs 1,685/share (nine times its Sep-26E consolidated Ebitda).

We interacted with the management to understand market dynamics and Birla Corp’s growth plans. The management noted that Q2 FY25 has been a tough quarter for the industry as a whole, as demand has been poor and cement prices continue to drift lower.

However, it remained upbeat about demand recovery in H2 FY26, as levers remain intact.

Birla Corp is working on expanding its share of green power and alternative fuel usage. It is also accelerating captive coal consumption and streamlining its supply chain logistics. All of these are expected to lower its unit opex by ~Rs 150/million tonne by FY26-end.

Birla Corp’s expansion plans in the central region are on track and it is confident of achieving 25 million metric tonne capacity by FY27-end.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.