Buy Birla Corporation; target of Rs 1,540: ICICI Securities

buy

ICICI Securitie`s research report on Birla Corporation

BCORP’s 4QFY25 earnings were above our estimates, driven by higher-than-estimated volume and realization. EBITDA grew 13% YoY to INR 5.3b (50% beat). EBITDA/t grew 5% YoY to INR 1,027 (est. INR 721), and OPM surged 1.2pp YoY to 19% (est. 14%). Adj. PAT rose 52% YoY to INR 2.9b (175% above estimate, aided by higher other income, lower interest cost, and ETR).

Outlook

We raise our EBITDA by 14%/8% for FY26E/FY27E, factoring in the outperformance in realization in 4Q. The stock trades inexpensively at 7x/6x FY26E/FY27E EV/EBITDA and EV/t of USD60/USD57. We value the stock at 8x FY27E EV/EBITDA to arrive at our revised TP of INR 1,540 (vs. INR 1,320). Reiterate BUY.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

ICICI_Birla Corporation