Birla Corporation shares: Three factors why the cement stock hit upper circuit of 20% today 

Shares of Birla Corporation Ltd, the flagship company of the Birla Group, rose 20% on Monday after the firm announced a 32.8% rise in net profit in Q4. Profit climbed to Rs 256.6 crore for the fourth quarter ending March 31, 2025 from Rs 193.3 crore posted during the same quarter last year. The cement maker has also proposed a dividend of Rs 10 per share (100%) for FY2024-25, which will be distributed within 30 days following approval from shareholders at the upcoming annual general meeting.

The board also approved a capital expenditure plan to enhance cement production capacity, which made investor sentiment more robust on the stock. This will involve the establishment of a greenfield cement grinding unit in Gaya, Bihar, aimed at a capacity of 2.80 million tonnes per annum and to be executed in phases.

Moreover, the company plans to issue redeemable non-convertible debentures (NCDs) totaling up to Rs 200 crore through private placement in one or more tranches, staying within the borrowing limits validated by shareholders.

The stock of the cement maker was stuck in the upper circuit of 20% in early deals. Birla Corporation shares opened 20% higher at Rs 1270.25. The stock was stuck at the same level at 9: 41 am on BSE. Market cap of the firm rose to Rs 9,781 crore. 

In the last one year, the Birla Corporation stock has fallen 13% on BSE. Birla Corporation shares have a one-year beta of 1, indicating average volatility during the period.    

In terms of technicals, the relative strength index (RSI) of Birla Corporation stands at 45, signaling the stock is trading neither in the oversold nor in the overbought territory.

The company’s revenue from operations saw a 6.1% year-on-year increase, totaling Rs 2,815 crore compared to Rs 2,654 crore in the previous year. EBITDA rose by 13.1%, coming in at Rs 534 crore, up from Rs 472 crore in Q4FY24. The EBITDA margin also improved, rising to 19% from 17.8%.

A surge in demand and pricing throughout the quarter contributed to enhanced realization, alongside a robust capacity utilization rate of 105% in the March quarter. Although the realization per tonne at Rs 5,103 was slightly lower than last year's Rs 5,178, the consolidated revenue for the quarter stood at Rs 2,863 crore, marking a 7% increase year-on-year.

EBITDA per tonne climbed to Rs 1,014, reflecting one of the highest levels seen in recent years, with a growth of 5% year-on-year and a substantial 78% increase sequentially. For the cement division, the operating profit margin reached 20% in the March quarter, an improvement from 18.6% a year ago and 14% for the full fiscal year, compared to 15.5% in FY23-24.

Due to strong cash flow generation, Birla Corporation successfully reduced its net debt to Rs 2,244 crore by the end of March, down from Rs 3,003 crore the prior year. The cost of borrowing also improved, decreasing by 35 basis points to 7.56%.