Birla Corporation Ltd.
ISIN: INE340A01012 • Market Cap: ₹6,808 Cr
The 5-Pillar Quality Audit for Birla Corporation Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (14.7%), Return on Capital Employed (8.8%), and equity compounding (7.6%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.52 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (0.7%) and 3Y PAT CAGR (9.6%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 12.30 vs PEG of 0.57 and Dividend Yield of 1.4%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 62.9%, backed by 23.1% institutional ownership.
Key Fundamental Strengths
Attractive Valuation Margin (P/E: 12.30)
Trading at a P/E multiple of 12.30, the stock offers a favourable risk-reward entry for quality compounding.
Consistent Market Standing (Mid Cap)
Established player in the Construction Materials sector with an overall fundamental quality score of 66/100.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 8.8%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Topline Stagnation (3Y Sales CAGR: 0.7%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Quantitative Strategy Eligibility
Checking BIRLACORPN against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 66/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Construction Materials Sector Peer Comparison
Compare BIRLACORPN directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Birla Corporation Ltd. (BIRLACORPN)Current | 66/100 | ₹6,808 Cr | 12.30 | 8.8% | 0.52 | — |
| UltraTech Cement Ltd. (ULTRACEMCO) | 69/100 | ₹3.38 Lakh Cr | 39.55 | 12.1% | 0.30 | View |
| Grasim Industries Ltd. (GRASIM) | 60/100 | ₹2.24 Lakh Cr | 39.36 | 6.6% | 2.19 | View |
| Ambuja Cements Ltd. (AMBUJACEM) | 72/100 | ₹1.01 Lakh Cr | 23.05 | 5.0% | 0.00 | View |
| Shree Cement Ltd. (SHREECEM) | 61/100 | ₹87,893 Cr | 53.92 | 10.6% | 0.07 | View |
| J.K. Cement Ltd. (JKCEMENT) | 64/100 | ₹40,803 Cr | 43.15 | 13.7% | 0.86 | View |
Frequently Asked Questions: Birla Corporation Ltd.
Q:What is the 5-Pillar Fundamental Score for Birla Corporation Ltd. (BIRLACORPN)?
Birla Corporation Ltd. has a RupeeTools Fundamental Score of 66/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (57/100), Financial Health (70/100), Growth (48/100), Valuation (85/100), and Ownership Quality (78/100).
Q:Is BIRLACORPN fundamentally strong for long-term investment?
BIRLACORPN currently holds a moderate quality rating of 66/100. While it operates in the Construction Materials sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does BIRLACORPN pass the Coffee Can Investing filter?
No. BIRLACORPN does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does BIRLACORPN compare against other Construction Materials peers?
Within India's Construction Materials sector, BIRLACORPN trades at a P/E of 12.30 and generates an ROCE of 8.8%. Compare its 5-Pillar score of 66/100 against top sector peers like UltraTech Cement Ltd. (69/100), Grasim Industries Ltd. (60/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.