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Birla Corporation Ltd

NSE: BIRLACORPN BSE: 500335

843.60

(1.74%)

Sun, 15 Mar 2026, 08:17 pm

Birla Corporation Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are thoroughly covered by earnings (8.7x coverage).
  • Dividends after 3 years are expected to be thoroughly covered by earnings (7.7x coverage).
  • Dividends per share have been stable in the past 10 years.
  • Birla's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Birla's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Performance (ROE) is expected to be above the current IN Basic Materials industry average.
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Cons

  • Cash flow for Birla is expected to decrease over the next 2 years.
  • Birla's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Birla's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
  • Birla's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.2%.
  • Birla's earnings are expected to decrease over the next year.
  • Birla's net income is expected to decrease over the next 2 years.
  • Birla is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • A decline in Birla's performance (ROE) is expected over the next 3 years.
  • Birla's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Birla's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
  • Birla's revenue growth is positive but not above the India market average.

health

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Pros

  • Birla is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Birla is profitable, therefore cash runway is not a concern.
  • Birla is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (35.8%, greater than 20% of total debt).
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Cons

  • Debt is not covered by short term assets, assets are 0.7x debt.
  • Birla's long term commitments exceed its cash and other short term assets.
  • The level of debt compared to net worth has increased over the past 5 years (49.5% vs 78% today).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
  • Birla's level of debt (78%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The average tenure for the Birla board of directors is over 10 years, this suggests they are a seasoned and experienced board.
  • Pracheta's remuneration is lower than average for companies of similar size in India.
  • Pracheta's compensation has been consistent with company performance over the past year, both up more than 20%.
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Cons

  • The average tenure for the Birla management team is less than 2 years, this suggests a new team.

misc

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Pros

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    Cons

    • Birla has significant price volatility in the past 3 months.

    past

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    Pros

    • Birla's 1-year earnings growth exceeds its 5-year average (97.1% vs 23.2%)
    • Birla has delivered over 20% year on year earnings growth in the past 5 years.
    • Birla used its assets more efficiently than the IN Basic Materials industry average last year based on Return on Assets.
    • Birla has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
    • Birla's earnings growth has exceeded the IN Basic Materials industry average in the past year (97.1% vs 17%).
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    Cons

    • Birla has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

    value

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    Pros

    • Birla is good value based on earnings compared to the IN Basic Materials industry average.
    • Birla is good value based on earnings compared to the India market.
    • BSE:500335 is up 25.8% outperforming the Basic Materials industry which returned 9.2% over the past month.
    • BSE:500335 is up 25.8% outperforming the market in India which returned 8% over the past month.
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    Cons

    • Birla's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Birla's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Birla is overvalued based on assets compared to the IN Basic Materials industry average.
    • Birla earnings are not expected to grow next year, we can't assess if its growth is good value.
    • 500335 underperformed the Basic Materials industry which returned -15.5% over the past year.
    • 500335 underperformed the Market in India which returned -14.5% over the past year.

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