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Shares of this cement stock under the ‘small-cap’ category jumped up to 4 percent in Wednesday’s trading session after the company reported financial results for the quarter ended December 2023. In the past six months, the company’s stock has gained nearly 25 percent for its shareholders. 

With a market capitalization of Rs 11,731.38 crores, the stocks of Birla Corp Limited started their trading session on Wednesday at Rs 1,539.90 and closed the session at Rs 1,523.45. The company’s scrip witnessed an intra-day high price of Rs 1,579.25, exhibiting a gain of nearly 4 percent compared to the previous closing levels of Rs 1,517.65 apiece. 

Such bullish stock price movements were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced the financial results for the quarter ended December 2023. 

During the recent financial quarters, the company reported a jump in both the prime indicators of business, viz, operating revenues as well as after-tax profits with the former taking a shift from Rs 2,289 crores during Q2FY24 to Rs 2,312 crores during Q3FY24, and the after-tax profits, during the same period, increasing from Rs 58 crores to Rs 109 crores. 

Moreover, the company, yearly, reported an increase in both metrics mentioned above with the operating revenues rising from Rs 2,016 crores during Q3FY23 to Rs 2,312 crores during Q3FY24, and the latter, keeping the timeframe the same, zooming nearly 318 percent, transitioning from a loss of Rs 50 crores to a profit of Rs 109 crores. 

According to the recent presentations, the company intimated about a new clinker capacity unit that would be set up in Prayagraj and the same will provide various benefits to the company in terms of incentives and logistics. 

As per the latest shareholding pattern data for the December 2023 quarter, the company’s Promoters hold a 62.9 percent stake, and the Foreign Institutional Investors (FIIs), recently reducing their ownership, currently hold a 6.45 percent stake in the company. 

Birla Corp Limited is a multi-product manufacturing company operating in various segments such as cement, jute, and others. Deriving a majority of revenue from the former segment mentioned, the company’s product portfolio includes portland pozzolana cement, ordinary portland cement, and portland slag cement among others.

Written by Amit Madnani 

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