Stock To Buy 2024: Motilal Oswal Bullish On MP Birla Group Stock, TP Rs 1700

Motilal Oswal has assigned buy rating to mid-cap Birla Corporation shares with target price of Rs 1700. Birla Corporation is the flagship company of the MP Birla Group. Last trading price of Birla Corporation share on BSE is Rs 1414.55 per share with intraday gain of 0.51% as on December 22, 2023.

If you Birla Corporation stock at the last trading price of Rs 1414.55, you can obtain likely return of 20.18% in 2024. Birla Corporation shares 21% in last 3-months and offered return of 43% year-to-date. Check details below:

Birla Corporation Stock Performance & Return: The stock's 52-week high price is Rs 1474.00 per share and 52-week low price is Rs 843.05 per share, respectively. The company has a market capitalisation of Rs 10,892.79 crore. Birla Corporation shares gained 42% in last 1-year, soared 2% in last 2-years, and offered return of 104% in last 30-years. In last 1-week, Birla Corporation stock declined 0.72%.

Birla Corporation Valuation: According to Motilal Oswal, "We estimate consol. revenue/EBITDA CAGR at 8.5%/33% over FY23-26, driven by higher sales volume, improvement in realization, and cost savings. The stock currently trades at 8x/7x FY25E/FY26E EV/EBITDA, lower valuation compared to its similar-sized peers. We value the stock at 9x Sep'25E EV/EBITDA to arrive at our TP of INR1,700 (implying EV/t of USD90). Reiterate BUY."

Birla Corporation (BCORP) is seeing steady progress in its Mukutban plant operations, with the capacity utilization of the plant reaching ~46% by Sep'23-end. Moreover, there has been continued improvement in Oct'23, added the analyst.

Birla Corporation Financials: The company on November 8, 2023 declared its consolidated net profit at Rs 58.37 crore for the second quarter of the current fiscal as against the net loss of Rs 56.46 crore declared in the corresponding quarter of last year. Its revenue from operations soared 14.30% YoY to Rs 2,285.83 crore for the quarter under consideration as against Rs 1999.83 crore reported last year in the similar quarter, as per the exchange filing. According to the company's official release, September quarter profitability rose despite seasonal factors on the back of softening fuel prices, ramping up of Mukutban cement plant's operation, cost-initiatives, premiumisation and optimisation of power and fuel mix.

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