Recent Price Movement and Market Context
On the day the new low was hit, Borosil Ltd’s stock price fell by 3.25% intraday, closing with a marginal day change of -0.04%. This decline came despite the stock outperforming its sector, which saw a sharper fall of -3.11%. Over the last three consecutive trading sessions, Borosil has delivered a cumulative negative return of -4.12%, signalling sustained downward momentum. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring the prevailing bearish trend.
In contrast, the broader market benchmark, the Sensex, showed resilience on the same day. After opening 140.93 points lower, it rebounded to close 0.08% higher at 83,644.31, just 3.01% shy of its 52-week high of 86,159.02. The Sensex’s 50-day moving average remains above its 200-day moving average, indicating a generally positive medium-term market trend, supported by gains in mega-cap stocks.
Long-Term Performance and Relative Underperformance
Over the past year, Borosil Ltd’s stock has declined by 28.83%, a stark contrast to the Sensex’s 8.13% gain during the same period. This underperformance extends beyond the last 12 months, with the stock lagging the BSE500 index across one-year, three-month, and three-year horizons. The 52-week high for Borosil was Rs.410, highlighting the extent of the recent price erosion.
From struggle to strength! This Small Cap from Textile - Machinery is showing early turnaround signals that look promising. Position yourself now for explosive growth potential ahead!
- - Early turnaround signals
- - Explosive growth potential
- - Textile - Machinery recovery play
Position for Explosive Growth →
Financial Metrics and Profitability Analysis
Borosil Ltd’s financial profile reveals a mixed picture. The company’s average Return on Equity (ROE) stands at 8.36%, which is considered modest and indicative of limited profitability relative to shareholders’ funds. This low ROE has contributed to the stock’s downgrade from a Hold to a Sell rating by MarketsMOJO on 14 Nov 2025, with the current Mojo Score at 40.0 and a Market Cap Grade of 3.
Despite the subdued ROE, the company has maintained a conservative capital structure, with an average Debt to Equity ratio of just 0.06 times, reflecting minimal leverage. This low debt level reduces financial risk but has not translated into stronger returns.
Operational Performance and Recent Results
On the operational front, Borosil Ltd has demonstrated healthy growth in certain areas. Operating profit has expanded at an annualised rate of 58.12%, signalling robust underlying business momentum. The latest half-year results ending September 2025 showed a Profit After Tax (PAT) of Rs.40.12 crores, representing a growth of 45.31% compared to the previous period. Additionally, the company’s Return on Capital Employed (ROCE) for the half-year reached a peak of 13.54%, and quarterly net sales hit a record Rs.340.36 crores.
Valuation metrics indicate that Borosil is trading at a Price to Book Value ratio of 3.9, which is considered fair relative to its peers’ historical averages. The company’s ROE for the latest period improved to 10.2%, and profits have risen by 23.9% over the past year. However, the stock’s Price/Earnings to Growth (PEG) ratio stands at 1.6, suggesting that the market is pricing in moderate growth expectations.
Sector and Shareholding Overview
Borosil Ltd operates within the diversified consumer products sector, specifically under the glass industry segment. The sector has experienced a decline of 3.11% on the day Borosil hit its 52-week low, reflecting broader pressures within the industry. Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction.
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 decline to Rs.271.1, its lowest level in 52 weeks, reflects a combination of factors including modest profitability metrics, underwhelming returns relative to the broader market, and a persistent downtrend in price momentum. While the company’s operational results show pockets of growth, these have not yet translated into sustained investor confidence or price stability. The downgrade in rating to Sell by MarketsMOJO further highlights the cautious stance on the stock’s near-term outlook.
Conclusion
Borosil Ltd’s recent price action and financial indicators illustrate the challenges faced by the company in delivering returns that meet market expectations. The stock’s position below all major moving averages and its 52-week low price point underscore the prevailing market sentiment. Although the company maintains a strong balance sheet and has reported growth in profits and operating margins, these factors have yet to reverse the stock’s downward trajectory in the eyes of the market.
Unlock special upgrade rates for a limited period. Start Saving Now →
