M.P. Birla Stock Announces Fresh Rs 860 Cr Capex Plan, Rs 200 Cr NCDs & Rs 10 Dividend; How To Trade Post Q4?

Birla Corporation Limited is the flagship company of the M.P. Birla Group, primarily engaged in the manufacturing of cement as its core business activity. It also has a big name in the jute goods sector. With a market value of Rs 9,781.60 Cr, Birla Corporation's shares closed Monday 20% higher on the BSE at Rs 1270.25 each. The company's announcement of good Q4 results, a new Rs 860 Cr capital expenditure plan, a Rs 10 dividend, and a Rs 200 Cr NCD fundraising plan preceded the rise in the share price.

Birla Corporation Dividend

The Board of Directors "recommended dividend of Rs 10 per share (i.e. 100%) on 7,70,05,347 ordinary shares for the Financial Year 2024-25, which shall be paid within 30 (thirty) days from the date of approval by the shareholders at the ensuing Annual General Meeting of the Company," said the company in a stock exchange filing.

Birla Corporation Fresh Capex Plan

The Board "approved capex towards increasing capacity by way of setting up of Greenfield Cement Grinding Unit, with a capacity of 2.80 million tons per annum at Gaya, Bihar in a phased manner," Birla Corporation informed stock exchanges.

The capex will require an investment infusion of Rs 860 crore, to increase the existing capacity of 10.19 million ton per annum (MTPA) with utilixation of 92% during the financial year 2024-25.

Birla Corporation Fundraising Plan

The Board also "approved the proposal for issue of redeemable Non-Convertible Debentures aggregating upto Rs 200 Crores (Rupees Two Hundred Crores only) on private placement basis in one or more tranches, within the overall borrowing limits of the Company, as approved by the shareholders. The Board of Directors has authorized Managing Director & Chief Executive Officer of the Company ('Authorised Person') to determine the size of the issue along with the detailed terms and conditions of the issue and take all necessary steps, incidental, consequential and relevant or ancillary thereto, in connection with the proposed issue," Birla Corporation informed stock exchanges.

Birla Corporation Q4 Results

In the March 2025 quarter, the company's consolidated net sales were Rs 2,814.91 crore, increasing 5.97% from Rs 2,656.43 crore in the March 2024 quarter. In Q4FY25, its net profit was Rs. 256.61 crore, rising 32.72% from Q4FY24's Rs. 193.34 crore. EBITDA increased 16.86% from Rs. 498.10 crore in the year-ago quarter to Rs. 582.06 crore in the quarter under review.

Birla Corporation Share Price Target

"Birla Corporation posted a sharp 20% rally, breaking above its previous resistance zone of ₹1,100. The move was backed by high volumes and signals a fresh bullish breakout. Immediate resistance lies at ₹1,350 and support at ₹1,200. The structure now looks favorable for further upside in the short term. Traders may consider entering on small dips near ₹1,240-₹1,250 with a stop loss at ₹1,200. Some consolidation may occur, but strength above ₹1,300 could quickly push the stock toward the ₹1,400 zone," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

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