Borosil Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹272.80+₹2.50 (+0.92%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Borosil Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Borosil Limited manufactures, sells, and trades in consumer ware products in India.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees699

Annual revenue₹1,171 Cr

How does it make money?

Turns over ₹1,171 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 699 employees supports ₹1.68 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.68 Cr

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE17.1%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 12.7% and earnings to grow about 31.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.7%

Est. earnings growth+31.9%

Analysts2

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +58% while net margin moved -9% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+58%

Margin effect-9%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 8.4% is weak

Quality vs. Valuation

Company Quality

60/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

58/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

46.6x

3Y Median

59.3x

40 monthly readings · mean 59.9x · range 34.8x–83.7x

Sector Median

68.5x

median of 3 sector peers

🟢Current valuation is approximately 21% below its 3y median of 59.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 32% below the peer median of 68.5x.

vs. its own history

Cheap

59.3x median over 40 months · -21%

vs. sector peers

Cheap

68.5x median of 3 peers · -32%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

17.6x

PEG

3.61

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 9.4% to 16.5% over 3 years.
Debt is being paid down
Total debt is down 17% over 3 years.
Very low debt
Debt/Equity of 0.17x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 3 high

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 109% against revenue up 58% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 154% against revenue up 58% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 9.4% to 16.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 17% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 21% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 32% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 109% against revenue up 58%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 12% a year✓ 16.5% CAGR
Latest reported year was 9.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 16.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹19 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 6 neutral · 3 weak

Market Cap

₹3,262 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

46.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.66x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.85

Profitable

Profitable on a per-share basis

ROE

8.4%

Moderate

Moderate capital efficiency

ROCE

10.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

9.0%

Modest

Modest growth

Profit Growth (YoY)

-26.7%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹19 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

30.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

5.0%

Weak

Thin margins leave little room for error

Net Margin

5.8%

Average

Average bottom-line conversion

Current Ratio

2.21

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.08

Defensive

Steadier than the market

52W Range Position

39%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

272.6 / 258.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

53.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹742 Cr	₹942 Cr	₹1,089 Cr	₹1,171 Cr	+16.5%
EBITDA	₹70 Cr	₹148 Cr	₹178 Cr	₹193 Cr	+40.4%
EBITDA Margin	9.4%	15.7%	16.3%	16.5%	—
PAT (Net Profit)	₹52 Cr	₹66 Cr	₹74 Cr	₹75 Cr	+12.9%
EPS	₹4.54	₹5.75	₹6.28	₹6.24	+11.2%
ROE	10.2%	11.4%	9.2%	8.4%	—
ROCE	11.9%	13.9%	13.2%	10.6%	—
Total Debt	₹179 Cr	₹263 Cr	₹93 Cr	₹148 Cr	-6.2%
Free Cash Flow	-₹120 Cr	-₹127 Cr	-₹117 Cr	-₹19 Cr	—

🟢 Revenue has grown at 16.5% a year over 3 years.

🟢 EBITDA has grown at 40.4% a year over 3 years.

🟢 EBITDA Margin has risen from 9.4% to 16.5% over 3 years (+7.1 pts).

🟢 PAT (Net Profit) has grown at 12.9% a year over 3 years.

🟢 EPS has grown at 11.2% a year over 3 years.

🔴 ROE has fallen from 10.2% to 8.4% over 3 years (-1.8 pts).

🔴 ROCE has fallen from 11.9% to 10.6% over 3 years (-1.3 pts).

🟢 Total Debt has shrunk at 6.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,282 Cr

Total Liabilities

₹395 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹119 Cr

Capex

-₹138 Cr

Shareholding (proxy)

Institutional Holding

3.7%

Insider Holding

67.9%

Corporate Actions

Ex-Dividend Date

17 Aug 2021

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹290

+6.3% vs CMP

Target Range

₹250 – ₹330

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

3 mixed3 general

Borosil Renewables (NSEI:BORORENEW) - Stock Analysis

Simply Wall Street, 15 Oct

Borosil Share Price Jumps Over 5% After DGTR Recommends Anti-Dumping Duty On Chinese Glassware

NDTV Profit, 25 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

BOROLTD Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Explained - Two key reasons why Borosil shares are up 6% in a weak market

CNBC TV18, 28 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Himadri Speciality, Borosil Renewables among 5 fundamental stock picks Ambareesh Baliga recommends buying for short term

Livemint, 25 Sept

Borosil Renewables Ltd Share/Stock Price Live Today | The HinduBusinessLine

BusinessLine, 01 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Valuation · Risk

WeakProfitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑