Birla Corp Q2 Results Review - Inline; Near-Term Headwinds Hurt Margins; Reiterate 'Buy': Motilal Oswal

The management is not much optimistic about the near-term outlook as the festive season and upcoming state elections could delay the expected recovery until Nov-24-end, adds the brokerage.

A mason applying cement on a surface. (Source: Freepik)

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Birla Corporation Ltd.’s reported performance was in line with our estimates. We expect a gradual recovery in profitability due to near-term challenges.

We estimate a compound annual growth rate of 2%/5%/14% in consolidated revenue/Ebitda/profit after tax over FY24-27.

Birla Corp trades inexpensively at seven times/six times FY26E/FY27E enterprise value/Ebitda, a lower valuation than its similar-sized peers.

We reiterate our Buy rating with a revised target price of Rs 1,500 (earlier Rs 1,650), based on nine times Sep’26E EV/Ebitda.

Click on the attachment to read the full report:

Motilal Oswal Birla Corp Q2FY25 Results Review.pdf
Read Document

Also Read: Ambuja Cements Can Bolster South Foothold With Orient Acquisition, Says Nomura

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.

lock-gif
To continue reading this story
Subscribe to unlock & enjoy all
Members-only benefits
Still Not convinced ?  Know More
Watch LIVE TV , Get Stock Market Updates, Top Business , IPO and Latest News on NDTV Profit.
GET REGULAR UPDATES