Recent Price Movement and Market Context
On 27 Feb 2026, Borosil Ltd’s stock closed at Rs.235.2, down 0.34% on the day, in line with the sector’s performance. The stock has been trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum. This technical positioning underscores the challenges the stock faces in regaining upward momentum.
The broader market environment has also been unfavourable. The Sensex opened flat but subsequently declined by 432.56 points, or 0.56%, settling at 81,787.92. The index is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed signals for the overall market trend.
Performance Comparison and Historical Context
Over the past year, Borosil Ltd’s stock has underperformed significantly, delivering a negative return of 24.24%, compared to the Sensex’s positive gain of 9.62%. The stock’s 52-week high was Rs.398.4, highlighting the extent of the decline from its peak. This underperformance extends beyond the last year, with the stock lagging the BSE500 index over the last three years, one year, and three months, reflecting a prolonged period of subdued investor confidence.
Built for the long haul! Consecutive quarters of strong growth landed this Small Cap from Chemicals on our Reliable Performers list. Sustainable gains are clearly ahead!
- - Long-term growth stock
- - Multi-quarter performance
- - Sustainable gains ahead
Financial Metrics and Profitability Concerns
Borosil Ltd’s financial indicators reveal areas of concern that have contributed to the stock’s subdued performance. The company’s average Return on Equity (ROE) stands at 8.36%, a figure that indicates modest profitability relative to shareholders’ funds. This low ROE suggests limited efficiency in generating returns from equity capital, which may weigh on investor sentiment.
Additionally, the company reported flat results in the December 2025 half-year period, with cash and cash equivalents at a notably low level of Rs.1.34 crore. This liquidity position may constrain the company’s ability to pursue growth initiatives or manage short-term obligations effectively.
Debt Profile and Operating Profit Growth
On a more positive note, Borosil Ltd maintains a conservative capital structure, with an average debt-to-equity ratio of just 0.06 times. This low leverage reduces financial risk and interest burden, providing some stability amid challenging market conditions.
The company has also demonstrated healthy long-term growth in operating profit, which has increased at an annualised rate of 40.93%. This robust growth in operating earnings contrasts with the stock’s price performance, suggesting that profitability improvements have yet to translate into market gains.
Valuation and Market Perception
Borosil Ltd’s valuation metrics present a mixed picture. The stock trades at a Price to Book Value (P/B) ratio of 3.3, which is considered attractive relative to its peers’ historical averages. The company’s ROE of 10.2% aligns with this valuation, indicating a reasonable price for the level of profitability achieved.
However, the Price/Earnings to Growth (PEG) ratio stands at 2.5, reflecting a premium relative to earnings growth of 14.7% over the past year. This elevated PEG ratio may signal that the market expects higher growth or improved performance, which has not yet materialised in the stock price.
Borosil Ltd or something better? Our SwitchER feature analyzes this small-cap Diversified consumer products stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Summary of Key Concerns
The stock’s recent decline to Rs.235.2 reflects a combination of factors including weak relative performance, subdued profitability metrics, and cautious market sentiment. The sustained fall over the last seven days, amounting to a 10.88% loss, highlights the challenges Borosil Ltd faces in regaining investor confidence.
While the company’s low debt and strong operating profit growth provide some positive context, these have not yet translated into improved stock performance. The flat half-year results and limited cash reserves further contribute to the cautious outlook reflected in the share price.
Market Position and Sector Dynamics
Borosil Ltd operates within the diversified consumer products sector, which has experienced mixed trends recently. The stock’s performance has been in line with sector movements on the day of the new low, but its longer-term underperformance relative to both the sector and broader indices underscores company-specific challenges.
Investors and analysts will continue to monitor the company’s financial metrics and market developments closely as the stock navigates this low price territory.
Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today
