Borosil Renewables (BORORENEW) – A Future Multibagger
There is a saying “Buy the company’s share whose product you have used and have a sense of satisfaction about it”. What better than owning a company you like? The most recent memory of me using a Borosil Renewable product is a Test Tube which we used in chemistry lab. I know many science graduates will be familiar with this as almost all the Test Tubes in the science lab that I worked were from this company.
Business Profile
Borosil Renewable Limited manufactures glassware products in India and has a strong presence internationally. They sell a range of products from cookware, dinnerware, solar glass and a variety of science products. The company was previously known as Borosil Glass Works Limited and changed its name to Borosil Renewables Limited in February 2020. The company is currently headquartered in Mumbai.
Fundamental Analysis
Price to Earnings(P/E) Ratio:
Borosil Renewable belongs to the semiconductor industry where the average price to earnings ratio is 43.96. The P/E ratio of Borosil Renewables is currently standing at 36.6 which is way below the industry average. This shows the company is at a good valuation in terms of P/E ratio.
Price to Book(P/B) Value:
The average price to book value in the semiconductor industry is 1.1x. P/B ratio of Borosil Renwables is currently at 3.4x which means it is overvalued.
Financial Trend:
The company has been consistently in profit for the last few years. The profit have increased YoY. It has nearly 19,000% growth in profit in 2021 when compared to 2020.
Image Source: Tickertape
Image Source: Simplywall
The company is consistently decreasing its liabilities and the overall financial outlook is positive.
Technical Analysis
The stock is currently moving above it’s 50 and 200 moving average. I can also see a beautiful Flag and Pole pattern on the daily chart.
The previous recent high of the stock is at Rs 320. Once it crosses that level, it will fly. All the indicators are showing the stock is at a strong position and is a good buy.
My Positions and levels to buy
I bought the stock around Rs 243 after the stock crossed its 50 moving average. Below is my position on it.
Good levels to Buy: Rs 250-Rs 300
I will be holding this share for the next few years.
If you liked the article do share it with your friends as it will motivate me to write more. 😊
