Borosil Renewables, The Newest Renewable Star On The Stock Market

Borosil Renewables Limited, the Mumbai based firm manufacturing firm that specialises in solar glass, has had a dream run up in the stock markets. Luckily for investors, this is a firm that has some real numbers to back it up, although valuations remain a matter of hope over substance probably. The firm, formerly called Borosil Glass Works Limited, has found that adding the name renewables to itself, besides delivering a key product, can certainly provide huge rewards for its shareholders.

In fact, after Adani Green and its stellar stock market record in the past year, and the relative disappointment of Sterling and Wilson Solar’s stock market journey so far, Borosil Renewables has come up with an absolutely solid performance. The stock price, which has moved up by over 50 percent in just the past 8 trading sessions, had enough momentum to weather the correction on Monday too.

The company is riding massive unmet demand, the probability of higher duties on imported competition, and finally, a successful fund raise to expand capacity. In short a perfect storm of positives to light a rocket under its stock.

Industry insiders we spoke to confirm that the firm is barely able to meet even 50 percent of the demand for their product, and remains a competitive player even vis a vis competition from China. Part of the Borosil Group, which has a long and respected presence in the glass ware sector, the firm has found it easier than most to combat the threat of low priced imports as well as maintain quality in the cut throat world of solar manufacturing.

It claims the world’s first fully tempered 2 mm thick solar glass, solar glass with lowest iron content giving highest glass efficiency, first company in the World to successfully be able to remove the most hazardous substance — “Antimony˜ – from its solar glass etc. Very recently the company has launched new products like Selene: an Anti-glare solar glass suitable for PV installations near airports and  Shakti: a very high efficiency solar glass in matt-matt finish. Amongst the upcoming products with enhanced features is the solar glass with Anti-soiling coating.

The company has a strong focus on expanding its domestic & exports footprints. The exports business has grown at a CAGR of 33% in the last 3 financial years. The European market is a major customer base for the company where it has now successfully started supplies of its newly developed products, i.e. 2.0 mm and 2.5 mm fully tempered glass. With additional production now available, it has plans to substantially increase exports by tapping more customers in Europe as also increasing presence in the Americas.

Interestingly, the firm had completed a fund raise at Rs 126 per share in early December, even as the stock has already run up past Rs 220! That gives the firm a market cap of  close to Rs 2900 crores, on sales turnover of Rs 271 crores in 2019-20. Truly big expectations to fill for the future.

The success here clearly shows the huge appetite and optimism in the market for the renewable energy sector, where even legacy behemoths like NTPC and Tata Power have seen their shares move only after declaring seriously large renewable energy plans.