Motilal Oswal - Birla (BIRLACORPN) MOSL: BIRLA CORPORATION (Buy)-EBITDA performance in line- increase in interest cost dents profits

Report

Motilal Oswal

MOSL: BIRLA CORPORATION (Buy)-EBITDA performance in line- increase in interest cost dents profits

â€‹Birla Corporation: EBITDA performance in line; increase in interest cost dents profits

(BCORP IN, Mkt Cap USD1.4b, CMP INR1216, TP INR1435, 18% Upside, Buy)

Volumes impacted due to sand mining: Bcorpâ€™s consolidated volumes increased 10% YoY to 2.65mt (vs est of 2.85mt) on like to like basis led by ramp up of Reliance volumes. However volumes declined 19% QoQ due to sand mining ban in U.P (35% of volumes) and in Bihar. Realization/t at INR 4662/t (+5%QoQ vs est of flat QoQ ) due to change in commercial terms. Revenues declined 15% QoQ due to lower volumes. Margins declined 2.2pp QoQ due to cost push in form of higher P&F cost. Hence EBITDA at INR 1.76b(- 26% QoQ). Interest cost increased 12% QoQ due to increase in debt levels by ~INR3bn in 1HFY18. Hence PAT at INR15mn was below estimate of INR216mn.
Margins impacted due to cost push: Standalone margins declined 1.2pp QoQ due to 14% QoQ increase in power and fuel cost led by impact of increase in petcoke prices. Freight cost/t increased 6% QoQ due to change in commercial terms. Reported PAT at INR44mn (vs est of138mn) due to higher interest cost on account of increase in debt levels.
Reliance cement reports EBITDA/t of INR1071 for 2QFY18: Acquired subsidiary Reliance cement has posted EBITDA of INR1071/t (vs est of INR1100/t) for 2QFY18 vs INR1200/t in 1QFY18. The subsidiary has operated at 67% utilization for 2QFY18 ( vs 81% in 1QFY18) due to ongoing sand mining ban in focus markets of U.P.

13/11/2017 8 EN

Underlying

Birla

Birla is engaged in the manufacture and sale of cement in India. Co.'s Cement division offers various cements, such as ordinary portland cement, 43 and 53 grades, portland pozzolana cement, fly ash – based PPC, low alkali portland cement, portland slag cement, low heat cement, and sulphate resistant cement. Its Jute division provides a range of products, including jute yarn, floor and wall covering, lino hessian, decorative fabrics, nursery cloth, scrim, jute carpets, non-woven jute felt, hydrocarbon-free bags/cloth, D.W. canvas, carpet backing cloth, hessian cloth/bags, and sacking bags/cloth.

See profile

INE340A01012 National Stock Exchange of India India

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

See profile

Other Reports on these Companies

Motilal Oswal

MOSL: BIRLA CORPORATION: Higher volume and realization drive EBITDA beat

BIRLA CORPORATION: Higher volume and realization drive EBITDA beat (BCORP IN, Mkt Cap USD1b, CMP INR994, TP INR1275, 28% Upside, Buy) Mukutban plant likely to achieve EBITDA break-even by end-FY23 Birla Corporation (BCORP)'s 1QFY23 earnings were above our estimate led by higher volume/realization (3%/2% beat); EBITDA/OPM/profit stood at INR2.6b/12%/INR736m (est. INR2.3b/11%/INR418m), respectively. The Mukutban plant started commercial production from 30th Apr'22 and should achieve EBITDA break-even by end-FY23. Its cement EBITDA/t would have been INR751 (v/s reported INR645), excludi...

EUR 120.00

August 8, 2022 August 8, 2022 8 EN

TheScreener

BIRLA CORPORATION sees its risk increased and a downgrade to Neutral

BIRLA CORPORATION (IN), a company active in the Building Materials & Fixtures industry, increases its market risk and lowers its general evaluation. The independent financial analyst theScreener just requalified the stock market behaviour as moderately risky. On the other hand, theScreener awards a fundamental star to the title, but the new risk assessment downgrades the general evaluation to Neutral. As of the analysis date April 1, 2022, the closing price was INR 1,210.90 and its expected value was estimated at INR 1,167.67.

Free Trial

April 2, 2022 April 2, 2022 1 EN

Motilal Oswal

MOSL: BIRLA CORPORATION (Buy)-Expansion plans provide growth visibility

BIRLA CORPORATION: Expansion plans provide growth visibility (BCORP IN, Mkt Cap USD1.4b, CMP INR1388, TP INR1740, 25% Upside, Buy) Reiterate Buy on attractive valuation BCORP’s 1QFY22 result was in line, with EBITDA growing by 47% YoY to INR3.4b, led by 39% growth in volume and EBITDA/t at INR1,026 (+6% YoY). The ongoing 3.9mtpa greenfield expansion at Mukutban (to be commissioned in 4QFY22) provides strong volume growth visibility in FY23. We expect a 14% EBITDA CAGR in FY21-23E, led by 14% volume CAGR, as it expands capacity by ~30% over the next 12 months. Valuation is also attrac...

EUR 120.00

August 6, 2021 August 6, 2021 8 EN

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality (HOMEFIRS IN, Mkt Cap USD0.9b, CMP INR802, TP INR1025, 28% Upside, Buy) HomeFirst’s 2QFY23 PAT grew 21% YoY/6% QoQ to INR543m (in-line). Credit costs grew 37% QoQ to INR50m (MOFSLe: INR31m). Underlying this, the NII grew 58% YoY to ~INR1b (in-line). ‘Other income’ grew 13% QoQ, driven primarily by higher treasury gains and investment income. Opex was 7% higher than estimated and grew 47% YoY and 14% QoQ, led by investments in new branches and resultant higher employee expenses. Disbursements grew 36%...

EUR 120.00

October 21, 2022 October 21, 2022 12 EN

Aliasgar Shakir

Aliasgar Shakir

MOSL : SHOPPERS STOP: Ticking the right boxes

. SHOPPERS STOP: Ticking the right boxes (SHOP IN, Mkt Cap USD1b, CMP INR780, TP INR805, 3% Upside, Neutral) Aided by price hikes, SHOP reported a healthy 19% revenue growth in 2QFY23 from pre-COVID levels (8% beat) on healthy (+10%) SSSG and sustained volumes. EBITDA grew 2.3x YoY (22% over pre-COVID levels), with a 540bp margin improvement. 1) A strong recovery in revenue, backed by an improved pricing; 2) expansion within the Beauty and Private Label segment; and 3) healthy annual 12/15 store additions for SHOP/Beauty are expected to drive business growth going forward. We expect a r...

EUR 120.00

October 21, 2022 October 21, 2022 13 EN

Tushar Manudhane

Tushar Manudhane

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities (ERIS IN, Mkt Cap USD1.2b, CMP INR708, TP INR860, 21% Upside, Buy) Eris Lifesciences (ERIS) delivered better than expected 2QFY23 performance, led by superior traction in new launches and improved operating leverage. ERIS is notonly sustaining the momentum in its recently launched products, but it is also preparing itself for an aggressive pace of new introductions. We reiterate our earnings estimate for FY23/FY24 and continue to value ERIS at 22x 12M forward earnings to arrive at a price target of INR860. We re...

EUR 120.00

October 21, 2022 October 21, 2022 11 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

MOSL: BIRLA CORPORATION (Buy)-EBITDA performance in line- increase in interest cost dents profits

MOSL: BIRLA CORPORATION: Higher volume and realization drive EBITDA beat

BIRLA CORPORATION sees its risk increased and a downgrade to Neutral

MOSL: BIRLA CORPORATION (Buy)-Expansion plans provide growth visibility

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe