Key notes on Borosil Renewables

May 26, 2023


  • Robust demand
  • Significant revenue headroom based on the current capacity – Rs 1800-1900 cr annually compared with Rs 900 cr currently.
    • Out of Rs 1800-1900, Rs 500-600 would be from the European operations.


  • Govt removed anti dumping duty from August 2022 resulting in pricing pressures from the Chinese companies. Company is hoping that govt atleast announces regular custom duty to lessen the pressures.
  • Ram material costs are elevated, which may normalise providing some breathing space. However, the same would be applicable for the Chinese Companies too. Key therefore continues to be the action by the government to impose some duties to support domestic manufacturers. As of now, no visibility.
  • European acquisitions and associated operational challenges. Normalized margins from these operations are estimated to be 10-15% as against 20% from the Indian operations. Achieving these normalized itself would not be easy.

Company is trading at significantly high trailing P/E of 90. Wait out. Don’t be in a hurry. Look for significant correction.

My expectation is that FY 24 profits would be around Rs 125 cr in a best case scenario, on a revenue of around Rs 1300-1400 cr. This implies an earning multiple of 50x. Growth thereafter anyways would be muted as capacity expansion would take another 18-24 months (if company decides to do any further expansion).

April 25, 2022

Borosil Renewables has worked very well for me in the last 2 years.

Company as such continues to do well.

However, it’s recent significant expansion plans are making me wary and especially the international acquisitions. Operational dynamics of such European acquisitions are not easy to manage.

To be on the cautious side, I shall be exiting my position shortly.

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