Recent Price Movement and Market Context
Borosil Renewables has been under pressure in the immediate term, with the stock declining for four consecutive days, resulting in a cumulative loss of 6.99% over this period. This short-term weakness contrasts with the broader market, as the Sensex has posted gains of 1.37% over the past week and 1.50% over the last month. The stock’s one-week and one-month returns stand at -5.35% and -7.88% respectively, indicating a notable underperformance against benchmark indices.
Despite this recent softness, the stock has delivered impressive returns over longer horizons. Year-to-date, Borosil Renewables has gained 10.26%, slightly outperforming the Sensex’s 9.59% rise. More strikingly, over the past year, the stock has surged 39.44%, significantly outpacing the Sensex’s 10.38% increase and the BSE500’s 8.50% return. This strong performance underscores the company’s ability to generate value for shareholders over time.
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Technical Indicators and Investor Participation
From a technical standpoint, the stock currently trades above its 100-day and 200-day moving averages, signalling a positive long-term trend. However, it remains below its 5-day, 20-day, and 50-day moving averages, reflecting recent short-term weakness. This divergence suggests that while the broader trend remains intact, immediate momentum has waned.
Investor participation has also diminished, with delivery volumes on 19 Nov falling by nearly 30% compared to the five-day average. This decline in trading activity may be contributing to the stock’s recent underperformance, as lower liquidity can exacerbate price volatility and reduce upward price pressure.
Strong Financial Performance Supports Long-Term Outlook
Despite the recent price softness, Borosil Renewables’ underlying financials remain robust. The company has demonstrated exceptional growth in operating profit, expanding at an annualised rate of 104.92%. Its latest quarterly results, declared in September 2025, were particularly encouraging, with operating profit surging by 248.44% and profit after tax (PAT) reaching ₹31.92 crores, a remarkable increase of 427.4% year-on-year.
Additionally, the company’s return on capital employed (ROCE) for the half-year stood at a healthy 9.30%, while its operating profit to interest coverage ratio reached an impressive 32.86 times. These metrics highlight Borosil Renewables’ efficient capital utilisation and strong ability to service debt, factors that underpin its solid financial foundation.
With a market capitalisation of ₹8,648 crores, Borosil Renewables is the second largest player in its sector, accounting for nearly 20% of the industry’s market share. Its annual sales of ₹1,460.49 crores represent 15.48% of the sector, further emphasising its significant presence and competitive positioning.
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Balancing Short-Term Volatility with Long-Term Strength
The recent decline in Borosil Renewables’ share price appears to be driven primarily by short-term technical factors and reduced investor participation rather than any fundamental weakness. The stock’s underperformance relative to the sector and benchmark indices over the past week and month contrasts with its strong annual and multi-year returns, reflecting a market correction or profit-taking phase rather than a shift in the company’s growth trajectory.
Investors should note that the stock’s position above key long-term moving averages and its outstanding financial results suggest that the company remains well-positioned for sustained growth. The combination of robust operating profit growth, high return on capital, and strong market share within its sector provides a solid foundation for future performance.
In summary, while Borosil Renewables is experiencing a temporary price dip as of 20-Nov, its long-term fundamentals and market leadership continue to support a positive outlook. The current weakness may offer a buying opportunity for investors focused on the company’s growth potential rather than short-term fluctuations.
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