The Borosil Renewables Limited share price took our attention for today.
Table of Contents
BUSINESS ANALYSIS
Borosil Renewables is engaged in the business of manufacturing of extra clear patterned glass and Low Iron Solar Glass for application in Photovoltaic panels, Flat plate collectors and Greenhouse gases.
Borosil Renewables is the sole producer of solar glass in India.
This company has a strong vision to expand its domestic and export footprints. 77% of revenue of Borosil Renewables is generated through India.
In solar glass segment, BRL has a market share of 40%.
In India there is no import duty for the import of Solar Glass, whereas a 21% import duty for the glasses imported from China.
Now coming to the Financials of the company.
FINANCIAL ANALYSIS
The market capitalization of the stock is Rs. 3,544 Cr.
The price to earnings ratio of the stock is 39.5 which is greater than the industry price to earnings ratio of 42.0. The value of P/E is slightly lesser which means the returns are favorable.
The company has a great return on capital employed of 29.4% which shows the strong financials the company has developed.
The return on equity is 19.0% which helps us in understanding the returns an investor will get when certain amount will be invested by them.
The company has a debt to equity ratio of 0.10 which indicates that the company does not have loans and they are free to use their cash flow for the company’s expansion.
Based on the market capitalization, Borosil Renewables stands tall at 2nd position.
The debt is reduced drastically by BRL.
A good profit growth of 25.44% CAGR has been seen by this company in the last 5 years
From the last 4 quarters (Jun 2020, Sep 2020, Dec 2020 & Mar 2021) the sales are increasing constantly from Rs 54 Cr to Rs 194 Cr.
The operating profit from the last 4 quarters (Jun 2020, Sep 2020, Dec 2020 & Mar 2021) has increased from Rs 10 Cr to Rs 104 Cr.
The expenses are maintained at a particular value which shows the stability the company has and the urge of growing without spending too much.
The net profit was Rs -2 Cr in the June 2020 quarter due to Covid pandemic, but it has drastically increased to Rs 67 Cr in the March 2021 quarter.
The earnings per share value is Rs 5.14.
The year on year profit growth is also tremendous which predicts the bright future of the company as the operating profit rose from Rs 37 Cr in March 2020 to Rs 197 Cr in March 2021.
In the year 2021, the reserves have increased to Rs 602 Cr from Rs 315 Cr in the year 2020 which shows the massive interest of investors into this company.
The share capital of the company has also increased to Rs 13 Cr in the year 2021.
Promoters have a holding of 61.83% till March 2021 quarter.
The FII’s have a 6.99% holding.
The DII’s have a 1.94% holding while only 29.24% is with the public.
The company is in safe hands and their growth is pretty much awesome.
TECHNICAL ANALYSIS
Reverse Head and Shoulder pattern is visible in the daily timeframe.
This pattern has a unique structure and a breakout will be achieved in some interval of time.
The pattern is under formation and is ready to set its target.
The borosil share price on 09th July 2021 is Rs. 272 which would definitely vary in the upcoming future.
The borosil share price reached a high of Rs 324 in the last 1 year.
DISCLAIMER:
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