Birla Corp Q1 Review – Expansion Plans Provide Growth Visibility: Motilal Oswal

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Birla Corporation Ltd.’s Q1 FY22 result was in line, with Ebitda growing by 47% YoY to Rs 3.4 billion, led by 39% growth in volume and Ebitda/tonne at Rs 1,026 (up 6% YoY).

Birla Corp’s ongoing 3.9 million tonne per annum greenfield expansion at Mukutban (to be commissioned in Q4 FY22) provides strong volume growth visibility in FY23.

We expect a 14% Ebitda compound annual growth rate in FY21-23E, led by 14% volume CAGR, as it expands capacity by ~30% over the next 12 months.

Valuation is also attractive at 7.4x FY23E enterprise value/Ebitda.

Click on the attachment to read the full report:

Moitlal Oswal Birla Corp Q1FY22 Result Update.pdf


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