Birla — Peer Comparison

How the peer fair value is calculated and which companies were used as benchmarks.

Peer selection

Peers are selected from the same Commodities sector. 8 companies were matched as valid comparables.

Same-industry peers share similar business models, cost structures, and growth prospects — making them the most appropriate benchmarks for valuation multiples. Industry-level matches were unavailable, so sector-level peers were used instead.

Peer comparison table

Commodities · 8 peers · sector medians shown

Better than medianWorse than median

Company	Mkt Cap	P/E	P/B	EV/EBITDA	ROE	Net Margin	Rev CAGR 3y
Birla BIRLACORPN · you	₹1.9 L Cr	27.6×	3.0×	18.5×	10.9%	8.3%	18.1%
Sector median	—	36.5×	6.4×	22.3×	19.3%	1.5%	-3.0%
Vedanta Aluminium Metal Limited VAML	₹1.8 L Cr	14.4×	13.1×	8.2×	90.8%	17.7%	—
KIOCL Limited KIOCL	₹24,040 Cr	1022.8×	13.5×	—	0.9%	2.7%	-26.5%
BASF India Limited BASF	₹16,665 Cr	43.0×	4.5×	22.3×	10.6%	2.8%	3.1%
Vinati Organics Limited VINATIORGA	₹13,837 Cr	27.8×	5.4×	—	19.3%	0.2%	—
Privi Speciality Chemicals Limited PRIVISCL	₹13,608 Cr	36.5×	13.7×	—	37.6%	0.1%	—
Sudeep Pharma Limited SUDEEPPHRM	₹12,509 Cr	107.6×	—	—	—	0.3%	—
Alkyl Amines Chemicals Limited ALKYLAMINE	₹10,444 Cr	54.7×	6.4×	35.8×	11.7%	11.7%	-3.0%
Sandur Manganese & Iron Ores Limited SANDUMA	₹9,632 Cr	16.7×	4.2×	—	24.8%	0.3%	—

Peer comparison verdict

Birla trades at a discount to sector peers on P/E (27.6× vs median 36.5×). This may signal undervaluation — or reflect lower expected growth or higher perceived risk versus the peer group.

How the peer fair value is calculated

Three valuation methods are weighted by sector. Each gives a fair value based on how sector peers are currently priced.

Method breakdown

25% weight · 7 peers

Sector median PE36.5×

Fair value via PE₹1,123

25% weight · 7 peers

Sector median PB6.4×

Fair value via PB₹1,816

EV/EBITDA

50% weight · 3 peers

Sector median EV/EBITDA22.3×

Fair value via EV/EBITDA₹1,025

Blended peer fair value₹1,247

Why median? Why these weights?

Median over mean: The sector median is used instead of the average because valuation multiples have extreme outliers — one high-growth company at 200× P/E would dramatically skew a mean. The median gives the middle value in the peer set, which better represents typical pricing.

Sector-specific weights: The weight given to each method reflects what matters most in this sector. For banks, P/B dominates because their value is tied to book assets. For IT companies, P/E carries the most weight because earnings quality matters more than asset base. For capital-intensive businesses, EV/EBITDA accounts for varying debt levels across peers and removes financing structure bias.

Limitations of peer comparison

Peer comparison assumes comparable companies are truly comparable — which is never perfectly true. Sector classifications can be imperfect: a conglomerate classified as "IT" may also have significant manufacturing revenue. Small peer counts (below 5) reduce confidence, as a single outlier can skew the sector median. When the entire sector is broadly expensive, peer comparison will show even an expensive stock as "fairly valued" relative to its peers.

The peer fair value shown is an algorithmic estimate based on publicly available financial data. It is not investment advice or a recommendation to buy, sell, or hold any security. Please consult a SEBI-registered investment adviser before making any investment decision.