Valuation Metrics Reflect Improved Price Attractiveness
Recent analysis reveals Borosil Ltd’s price-to-earnings (P/E) ratio stands at 37.62, a figure that, while elevated compared to broader market averages, represents a marked improvement relative to its historical premium and peer group valuations. The company’s price-to-book value (P/BV) ratio of 3.46 further underscores this shift, indicating a more reasonable valuation level compared to previous assessments that labelled the stock as fairly valued.
These valuation changes have prompted a downgrade in the company’s Mojo Grade from Hold to Sell as of 14 Nov 2025, reflecting a cautious stance amid ongoing market volatility. However, the valuation grade itself has improved from fair to attractive, signalling that the stock’s price now offers a more favourable entry point for discerning investors.
Comparative Sector and Peer Analysis
When benchmarked against key competitors within the diversified consumer products sector, Borosil Ltd’s valuation appears more compelling. For instance, Asahi India Glass trades at a P/E of 75.77 and is classified as very expensive, while Borosil Renewables commands a P/E of 42.34, also deemed very expensive. La Opala RG, another peer, holds a P/E of 22.63 but is similarly rated very expensive based on its EV/EBITDA multiple of 15.94.
In contrast, Borosil’s EV/EBITDA ratio of 16.98, while not the lowest, remains competitive within the peer set, reinforcing the notion that the stock’s current price reflects a more balanced risk-reward profile. The company’s PEG ratio of 2.57, though above the ideal threshold of 1, is consistent with sector norms and suggests moderate growth expectations priced into the stock.
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Financial Performance and Returns Contextualise Valuation
Borosil Ltd’s latest return on capital employed (ROCE) and return on equity (ROE) stand at 10.32% and 10.20% respectively, reflecting moderate profitability levels that support its current valuation. While these returns are not exceptional, they are stable and consistent with the company’s diversified consumer products sector peers.
Share price performance over various time horizons paints a mixed picture. Year-to-date, Borosil has declined by 12.53%, underperforming the Sensex’s 3.51% gain. Over the past year, the stock has fallen 23.38%, contrasting sharply with the Sensex’s 10.44% rise. Longer-term returns over five years show a 51.05% gain, slightly lagging the Sensex’s 61.92% appreciation, while three-year returns remain negative at -11.26% versus a 38.28% gain for the benchmark.
These figures highlight the stock’s recent struggles amid broader market strength, which may have contributed to the improved valuation attractiveness as the share price corrected from its 52-week high of ₹398.40 to a current level near ₹246.10.
Market Capitalisation and Trading Activity
Borosil Ltd’s market capitalisation grade is rated 3, indicating a mid-tier size within its sector and market segment. The stock experienced a day change of -1.34% on 25 Feb 2026, with intraday trading ranging between ₹243.75 and ₹249.45. The 52-week low of ₹240.05 suggests the current price is near the lower end of its annual trading range, further supporting the notion of improved valuation appeal.
Investment Outlook and Quality Assessment
Despite the downgrade to a Sell rating by MarketsMOJO, the shift in valuation parameters from fair to attractive suggests that Borosil Ltd may offer a window of opportunity for value-oriented investors willing to navigate near-term volatility. The company’s Mojo Score of 37.0 and Mojo Grade of Sell reflect concerns about momentum and quality metrics, but the valuation improvement tempers these risks.
Investors should weigh the company’s moderate profitability, subdued recent returns, and sector challenges against the more reasonable price multiples now on offer. The absence of a dividend yield may also influence income-focused portfolios, though the stock’s capital appreciation potential remains under review.
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Conclusion: Valuation Shift Offers Potential Entry Point Amid Caution
Borosil Ltd’s recent valuation recalibration from fair to attractive, driven by a more reasonable P/E and P/BV ratio relative to its historical levels and peer group, presents a nuanced investment case. While the company faces headwinds reflected in its downgraded Mojo Grade and underwhelming recent returns, the improved price attractiveness may appeal to investors with a longer-term horizon seeking value in the diversified consumer products sector.
Careful monitoring of operational performance, sector dynamics, and broader market conditions will be essential for investors considering Borosil Ltd. The stock’s current price near its 52-week low, combined with stable profitability metrics, suggests a potential opportunity for accumulation, albeit with a cautious stance given the prevailing risks.
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