Motilal Oswal keeps buy on Birla Corporation with ₹1,100 target
Business
Motilal Oswal is still backing Birla Corporation, recommending a "Buy" with a target price of ₹1,100.
While Birla Corp's revenue grew 9% in Q2 FY2027 to ₹2,420 crore, profits took a hit: EBITDA dropped 25% and operating margins slipped to 9%.
Still, the brokerage sees long-term potential.
Net debt hitting ₹2,930cr by FY28
Birla Corp's net debt is expected to rise from ₹2,080 crore in FY2026 to ₹2,930 crore by FY2028.
Even though adjusted profit after tax fell 59% this quarter (landing at ₹37.5 crore), it actually beat forecasts thanks to lower depreciation costs.
The company's ability to outperform expectations despite challenges shows some solid cost management behind the scenes.