Borosil Ltd Stock Hits 52-Week Low at Rs.240.05 Amid Market Pressure

Stock Price Movement and Market Context

The stock’s new low price of Rs.240.05 represents a substantial drop from its 52-week high of Rs.406.40, reflecting a year-long decline of 36.68%. This contrasts sharply with the Sensex’s positive performance over the same period, which gained 6.88%. On the day of the new low, Borosil underperformed its sector, the glass industry, which advanced by 3.35%, while the stock itself lagged by 3.47% relative to the sector.

Further technical indicators show Borosil trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum. The broader market also opened lower, with the Sensex down 0.75% at 81,947.31 and currently trading at 82,042.69, a 0.63% decline. The Sensex remains below its 50-day moving average, though the 50DMA is still above the 200DMA, indicating mixed medium-term market signals.

Financial Performance and Profitability Metrics

Borosil’s financial metrics reveal a complex picture. The company’s return on equity (ROE) stands at a modest 8.36%, indicating relatively low profitability generated from shareholders’ funds. This figure has contributed to the stock’s downgrade from a Hold to a Sell rating as of 14 Nov 2025, with a current Mojo Score of 46.0 and a Market Cap Grade of 3. The downgrade reflects concerns about the company’s efficiency in generating returns despite its market position.

Despite the stock’s price decline, Borosil has demonstrated some positive financial trends. Operating profit has grown at an annual rate of 58.12%, and the latest half-year results showed a profit after tax (PAT) of Rs.40.12 crores, a growth of 45.31%. The return on capital employed (ROCE) for the half-year reached a high of 13.54%, while net sales for the quarter hit a record Rs.340.36 crores. These figures suggest that while the stock price has weakened, the company’s core business has shown resilience in profitability and sales growth.

Valuation and Comparative Analysis

From a valuation standpoint, Borosil presents a very attractive price-to-book value of 3.5, trading at a discount relative to its peers’ historical averages. The company’s ROE of 10.2% in recent periods supports this valuation perspective. However, the price decline over the past year contrasts with a 23.9% increase in profits, resulting in a PEG ratio of 1.4, which indicates that the stock’s price adjustment has outpaced earnings growth.

In terms of leverage, Borosil maintains a conservative capital structure with an average debt-to-equity ratio of just 0.06 times, underscoring limited reliance on debt financing. This low leverage reduces financial risk but has not translated into stronger market performance in the recent period.

Sector and Peer Performance

The diversified consumer products sector, particularly the glass segment, has shown relative strength, with the sector gaining 3.35% on the day Borosil hit its 52-week low. This divergence highlights the stock’s underperformance within its industry context. Over longer time frames, Borosil has underperformed the BSE500 index across one year, three years, and three months, indicating persistent challenges in matching broader market and sectoral returns.

Summary of Key Metrics

To summarise, Borosil Ltd’s stock has declined to Rs.240.05, a 52-week low, reflecting a 36.68% drop over the past year. The company’s financials show mixed signals: while profitability ratios such as ROE remain modest at 8.36%, operating profit and PAT have grown robustly in recent periods. The stock trades below all major moving averages and has underperformed both its sector and broader market indices. Its low debt-to-equity ratio and attractive valuation metrics contrast with the stock’s price weakness, highlighting a complex investment profile.

Market conditions, including a weaker Sensex and sectoral gains not mirrored by Borosil, contribute to the stock’s current position. The downgrade to a Sell rating by MarketsMOJO on 14 Nov 2025 reflects these factors, with a Mojo Score of 46.0 underscoring the cautious stance.

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