Review

BIRLA CORPORATION LTD.

Ticker : 500335
FV : Rs 10
52-Week H/L : Rs 1,649/661.25

We recommended Birla Corporation in Volume No 37, Issue No 50 (dated October 4, 2021) when the scrip was trading at Rs 1,437.10. On the consolidated quarterly front, the company recorded an increase of 2.64 per cent in net sales and operating income is at Rs 1,697.84 crore for Q2FY22 as compared to net sales and operating income of Rs 1,654.25 crore reported for Q2FY21. The quarter recorded an operating profit of Rs 280.52 crore in Q2FY22 as compared to an operating profit of Rs 403.85 crore posted in Q2FY21. The company reported a net profit of Rs 85.55 crore in Q2FY22 whereas it was Rs 166.62 crore in Q2FY21, a 49 per cent decline. Demand for cement was majorly impacted by the extended and heavy monsoon and shortage of sand in the important markets for the company. Also, the channelization of products outside core markets has impacted realizations and profitability. Hence, we recommend investor-readers to BOOK PROFIT at Rs 1,570.25 as of November 08, 2021, with a gain of 9.27 per cent.