Steady volume growth through expansion and cheap valuations of Birla Corp to deliver decent returns; cement industry in the midst of an cyclical upswing

Team Lease poised to do better post Covid; formalization of labour markets a long term positive trend; good demand emanating from tech companies
August 16, 2021
Cipla’s strength is in differentiated products for developed market and strong brands in the domestic formulations industry; revival of sales from South Africa, a large market for the company could be value accretive
August 16, 2021

Birla Corporation Limited (BCL), the flagship company of the M.P. Birla Group, is primarily engaged in the manufacturing of cement as its core business activity. It has significant presence in the jute industry as well. The company is a dominant player in central India and has a sizeable presence in northern and eastern markets. It is expanding its cement production capacity from the current 15.38 mtpa to 19.68 mtpa and then further to 25 mtpa in 2-3 years. As and when this capacity comes on stream, revenues and profits will improve. We have an over weight rating on the stock due to steady volume growth and attractive valuations – 12-08-2021 Price: 1365.95 Rating: Over Weight Recommendation: Buy

Disclosure

Elixir Equities Private Limited (hereinafter referred to as “EEPL”) is a registered Member of National Stock Exchange of India Limited, BSE Limited and Depository Participant of the Central Depository Services Ltd. It is also a SEBI registered Portfolio Manager. We have been granted certificate of Registration as a Research Analyst with SEBI. Registration no. is INA000004787 for the period of 5 (Five) Years from 19th May, 2017.

EEPL or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in any of the companies covered by us. However, we or our clients, relatives and associates may have an investment / trading / arbitrage / market making (informal) position of less than 1% financial interest/beneficial ownership in the companies covered by us and recommended through this portal.

We, our associates/analyst have not received any compensation from any of the companies covered by us during the past twelve months. Neither EEPL nor its analyst has served as an officer, director or employee of any of the companies covered by us. We do provide any service to any of the companies covered by us. The views expressed herein are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision.

The information and opinions in this report have been prepared by EEPL and are subject to change without any notice.

Our views and opinions are based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. Nothing in this website / portal / application constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.

The securities discussed and opinions expressed may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This service may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. EEPL accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this website / portal / app.

We submit that no material disciplinary action has been taken on EEPL by any Regulatory Authority.

This website/ portal / service/ app is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject EEPL and affiliates to any registration or licensing requirement within such jurisdiction.

RATING RATIONALE

EEPL endeavours to provide objective opinions and recommendations.

We assign Buy, Hold and Sell ratings on the securities covered by us.
Our rationale for these ratings has Super, Over, Neutral and Nil Weight ratings these securities as well. These Super, Over, Neutral and Nil Weight ratings serve as a guide to the quantum / weightage of that security which may be held in your portfolio.

The ratings are for long term investing for a minimum of three years unless specified.

 

Leave a Reply

Your email address will not be published. Required fields are marked *