Solar glass manufacturer Borosil Renewables has given exceptional returns to its investors in the last 3 years. The stock has soared over 14 times in this period from around ₹40 in October 2019 to currently trade around ₹570 per share.
The small-cap stock has rallied nearly 1,325 percent since 2019 October. An investment of ₹10,000 in the stock in October 2019 would have turned to ₹1.4 lakh currently.
In the last 1 year, the stock has risen 22 percent and fallen around 9 percent in 2022 YTD. Just in October, the stock lost over 3.5 percent. In the 10 months of the current calendar year, it has given positive returns in 4 months and negative in the remaining 6. It rose the most in April, up 21.5 percent while fell the most in February, down 9 percent.
Borosil Renewables is the only solar glass manufacturer in the country with an installed capacity of 450 metric tons per day. It offers Selene, an anti-glare solar glass suitable for PV installations near airports; and anti-soiling and antireflective coating solar glass. It is also engaged in the manufacture and sale of flat glass products in India and internationally.
The company was formerly known as Borosil Glass Works Limited and changed its name to Borosil Renewables Limited in February 2020. Borosil Renewables Limited was incorporated in 1962 and is based in Mumbai, India.
Last week, the firm acquired 86 percent stake in the European solar glass manufacturer Interfloat Group, through its overseas wholly-owned subsidiaries. BRL intends to strengthen the market leadership established by Interfloat by meeting the ever-evolving demands of its European customers more efficiently, said the firm.
“With this acquisition, BRL’s combined manufacturing capacity in India and Europe would be available to meet a wide range of requirements including sizes varying textures, coatings, dimensions, and thickness," the statement said. BRL’s current expansion process in India will take the manufacturing capacity to 1000 tonne per day in Q4 CY2022. BRL plans to add further capacity with the next expansion growing to 2,100 TPD in CY2024.
The company has not declared its financial returns for the September quarter yet. In the June quarter of FY23 (Q1FY23), the company's net profit declined 24 percent to ₹30.1 crore against a net profit of ₹39.6 crore in the same period last year.
The decline in profit during the June quarter came on the back of the rising cost of raw materials, packing materials, etc. which could not be fully passed on to its customers due to tight market conditions.
Its total income jumped 21.5 percent to ₹173.1 crore during the period ended June 30, 2022, as compared to ₹142.5 crore in the same period last year.
It is important to note that small caps are high beta stocks and have considerably higher risks than largecaps and midcaps, this means higher rewards as well when performing well. It can provide a huge opportunity for high-risk investors but are not suitable for risk-averse investors.
Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.