Please refer to important disclosures at the end of this report
Birla Corporation Limited (BCL) offers products ranging from cement to jute
goods, polyvinyl chloride (PVC) floor covering, as well as auto trims and steel
castings. BCL is a leading player in the cement space with the total capacity o
10 MT. The company has been operating at a healthy utilisation of over 85% due
to high presence in north. With the acquisition of reliance infrastructure’s cement
business the company’s total capacity will increase to 15.5 MT making it a
formidable player in the cement space and also will provide an entry into the
central region apart from north and east. BCL’s favourable market mix and
efficient operations offer an edge over competitors. A pick up in rural housing on
the back of normal monsoon and 7th pay commission is expected to drive
cement demand in the coming years. Apart from this, the company will be ke
beneficiary of expected revival in the demand on account of higher budgetar
allocation towards development of roads and highways along with governments
focus on rural development. This coupled with improving pricing scenario in the
company’s key markets is expected to result in robust revenue growth for the
company. In addition, to this lifting of the mining ban and various cost reduction
measures like higher usage of fly ash & pet coke and reduction in powe
consumption will have a positive impact company’s margin. Hence Buy.
CMP `672
Stock Info
Beta 0.9
Bloomberg Code
Shareholding Pattern (%)
Promoters 62.9
MF / Banks / Indian Fls 27.3
FII / NRIs / OCBs 2.7
Indian Public / Others 7.1
Abs. (%) 3m 1yr 3yr
Sensex (7.0) 2.5 25.4
Birla Corpn. (0.9) 61.0 185.4
Reuters Code BRLC.BO
BSE Sensex 26,150
Nifty 8,074
Face Value (
Market Cap (
cr) 5,177
52 Week High / Low 807/322
Avg. Daily Volume 19,942
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Birla Corporation
Others | Cemen
November 21, 2016
Birla Corporation | Cement
November 21, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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Disclosure of Interest Statement Birla Corporation
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)