What is the story behind Birla Corp rallying by nearly 40% in just two trading sessions? Is it only cement euphoria or more than that?

Normally, a rally of 40% in 2 days is rarely on the back of sectoral euphoria and has a company specific story. None of the other cement companies have given that kind of returns, although the cement sector overall has been buoyant. Birla has been specifically buoyant after its March quarter earnings being followed by a slew of upgrades. Birla Corp is currently in the midst of a major expansion program, which will be instrumental in expanding its margins in the medium term. While it reported lower revenues due to weak off take, it showed better traction on profitability. Sales volumes were also hit by 13% in the March quarter. However, realizations improved by 4% to Rs.5060/ton due to its focus on the blended premium segment, which accounts for nearly 41% of its total sales. Most of Birla Corp plants are up and running and operating at 80-100% capacity utilisation. Its EBITDA per ton stood at Rs.1032, resulting in 52% net profit growth.