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Birla Corp Q1 Review - Expansion Plans Provide Growth Visibility: Motilal Oswal

Birla Corp Q1 Review - Expansion Plans Provide Growth Visibility: Motilal Oswal

Workers unload sacks of cement from a freight train in Mumbai, India. (Photographer: Kuni Takahashi/Bloomberg)
Workers unload sacks of cement from a freight train in Mumbai, India. (Photographer: Kuni Takahashi/Bloomberg)

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Birla Corporation Ltd.’s Q1 FY22 result was in line, with Ebitda growing by 47% YoY to Rs 3.4 billion, led by 39% growth in volume and Ebitda/tonne at Rs 1,026 (up 6% YoY).

Birla Corp's ongoing 3.9 million tonne per annum greenfield expansion at Mukutban (to be commissioned in Q4 FY22) provides strong volume growth visibility in FY23.

We expect a 14% Ebitda compound annual growth rate in FY21-23E, led by 14% volume CAGR, as it expands capacity by ~30% over the next 12 months.

Valuation is also attractive at 7.4x FY23E enterprise value/Ebitda.

Click on the attachment to read the full report:

Moitlal Oswal Birla Corp Q1FY22 Result Update.pdf

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