Borosil Renew. (BORORENEW)

FairStock Score: 23/100 — RISKY

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

Key Financials

Strengths

• Promoter holding of 58.77% aligns owner interests with minority shareholders.
• Debt/Equity of 0.23 implies a low-leverage balance sheet and manageable solvency risk.
• Latest quarter net profit of ₹100 Cr on ₹390 Cr sales shows a sharp operating margin spike.
• Piotroski F-Score of 6/9 points to some improvement in financial health.
• Sales growth of 8.01% is modest but positive in a difficult industrial glass environment.

Concerns

• Trailing P/E of 67.16 and P/B of 8.25 leave little margin of safety at ₹511.20.
• Negative ROE and ROCE indicate existing capital is not being deployed productively.
• Zero dividend yield forces reliance entirely on speculative price gains.
• Profit growth of 425.31% over a weak base makes the PEG ratio of 0.31 misleading.

AI Analysis

Let me talk plainly. I look for businesses where the numbers tell a consistent story; Borosil Renew’s story is not consistent. The market quotes ₹511.20, which is 67.16 times earnings and 8.25 times book value. But the same financials show ROE of -13.22% and ROCE of -4.41%. So on a trailing basis, the company is not earning acceptable returns on equity or capital. A high P/E combined with negative returns is a dangerous mix. The latest quarter does catch my eye: ₹390 Cr sales and ₹100 Cr net profit, implying roughly 25.6% net margin. Profit growth of 425.31% looks extraordinary, but when the earlier base is weak, percentages become misleading. This could be a genuine turnaround, or it could be a one-off. I would not commit capital on one quarter. The balance sheet is not reckless—debt/equity is 0.23—and promoter holding at 58.77% is a positive. The Piotroski score of 6/9 suggests some improvement, and the FairStock score of 21/100 calls it risky. There is no dividend yield, so the entire thesis depends on future price appreciation. At ₹511.20, within a 52-week range of ₹374.40 to ₹721.00, Mr. Market is already pricing in perfection. I do not see a durable moat in an industrial glass business with negative returns on capital. A PEG of 0.31 is only attractive if 425% profit growth is sustainable, which seems unlikely. Benjamin Graham would say pay for demonstrated earnings power, not hope. I will stay on the sidelines until Borosil Renew proves its returns and earnings are durable across multiple quarters.

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