Buy Birla Corporation; target of Rs 1310: HDFC Securities

Buy

HDFC Securities' research report on Birla Corporation

We continue to like BCORP for its large retail presence in the lucrative north/central regions. We expect a recovery in margins as Mukutban ramps up and it starts accruing its incentive benefit from H2FY24 onwards. Unitary EBITDA improved by INR 235 per MT QoQ in Q4FY23 to INR 600 per MT, aided by higher volume, Mukutban loss reduction, and better realisation. With no major near-term Capex, gearing should reduce from FY24 onwards.

Outlook

We maintain our BUY rating on Birla Corporation (BCORP), with an unchanged target price of INR 1,310/share (8.5x Mar-25E consolidated EBITDA).

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Birla Corporation - 11 -05 - 2023 - hdfc