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'Buy' Birla Corp. Maintains HDFC Securities, Target Rs 1490
HDFC Securities believes the target valuation has room for expansion if Birla Corp is able to deliver higher-than-estimated margins and execute its planned expansion by 2027
01 Apr 2025, 12:49 PM IST 
The brokerage values Birla Corp at 8x its FY27E consolidated Ebitda, in line with its 5/10year mean multiple (1-yr forward), implying unchanged target price of Rs 1,490/share.
(Photo Source: Freepik)
Birla Corp’s brownfield SGU expansion (line-3) in Kundanganj is on track and should be operational by the end of Q1 FY26. The company remains committed to expanding its cement capacity to 25 mmt by 2027. This includes 3 mmt brownfield clinker expansion at Maihar (MP) and two SGUs in UP and MP (~1.5 mmt each). Birla Corp is spending Rs 5 billion on Capex in FY25E (Rs 3 billion spent during 9M FY25). The brokerage expects capex to acce...
