Why is Borosil Renew. falling/rising?

Jul 21 2025 09:22 PM IST
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As of 21-Jul, Borosil Renewables Ltd's stock price has risen to Rs. 630.80, marking an 8.76% increase and a new 52-week high. Despite strong short-term performance, concerns about long-term profitability and high debt levels may pose risks to sustainability.
As of 21-Jul, Borosil Renewables Ltd is experiencing a price increase, currently at Rs. 630.80, reflecting a rise of Rs. 50.8 or 8.76%. The stock has reached a new 52-week high of Rs. 644.25 today and has outperformed its sector by 9.42%. Over the past week, the stock has gained 15.11%, and in the last month, it has risen by 16.81%. However, there are concerns regarding the company's long-term fundamental strength, as it has shown a -193.46% CAGR growth in operating profits over the last five years, coupled with a high Debt to EBITDA ratio of 2.73 times, indicating potential risks to profitability and debt servicing.

In the broader market context, while Borosil Renewables has significantly outperformed the benchmark Sensex, which has seen a slight decline of 0.06% over the past week, the company's returns over the past year stand at 33.11%, compared to the Sensex's 1.98%. This stark contrast highlights the stock's strong performance relative to the market. However, the falling investor participation, with a 9.97% decrease in delivery volume against the five-day average, raises questions about the sustainability of this upward movement, especially given the company's negative operating profits and low return on equity.
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