Borosil (BOROLTD)

FairStock Score: 14/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Low leverage with Debt/Equity of only 0.09 provides financial stability
• Promoter holding of 64.62% aligns management with minority shareholders
• ROCE of 12.48% is respectable and above the negligible debt burden
• Trading about 36% below its 52-week high offers a de-rated entry point, though not yet cheap

Concerns

• Profit growth is sharply negative at -24.04% while sales growth is near zero at 0.19%
• High valuation: P/E of 36.28 and P/B of 3.94 are not supported by current earnings decline
• Piotroski F-Score of 4/9 and FairStock Score of 8/100 signal weak financial health
• Zero dividend yield means no income return while waiting for a turnaround

AI Analysis

At ₹252.95, Borosil is not a business I would buy today. The balance sheet is first-rate: debt-to-equity is only 0.09, and ROCE is 12.48%, so management has not leveraged up. Promoters own 64.62%, which aligns their interests with mine. But my job is to buy growing earning power at a sensible price, and here earning power is deteriorating. Sales growth is just 0.19%, and profit has fallen 24.04%. Return on equity is under 10%, which is ordinary for a houseware franchise, and the Piotroski F-score of 4 confirms a weak internal condition. The market is not being modest either: at a P/E of 36.28 and a P/B of 3.94 against book value of ₹64.13, I am paying for growth that simply is not visible. The PEG ratio of 190.95 tells me the current price cannot be justified by today's earnings, and with a dividend yield of zero, I receive no income while waiting. The latest quarter shows sales of ₹339 Cr but net profit of only ₹24 Cr, so there is no evidence of acceleration. Price is what you pay, value is what you get—and here the value is not clear. Trading at ₹252.95, well below the ₹397.95 high but still far above the ₹213.73 low, the stock is not cheap enough to compensate for flat sales and falling profit. This is a decent business with a manageable debt load and strong promoter holding, but it is a slow grower priced like a fast grower. I would wait for either a much lower price or clear evidence that profit margins and quarterly earnings are reviving before putting my money here.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer