Borosil Renewables:
The future Multibagger Stock from Solar Energy Sector | Must Buy Portfolio Stock
Borosil Renewables is the first and foremost and only Solar glass manufacturer in India. This company identified the opportunity earlier in Solar energy. And they believed it strongly and established the solar glass manufacturing facility at Bharuch, Gujarat in January 2010.
The company Borosil Renewables has a strong focus on expansion with innovation and known for its pioneering achievements like development of Worlds first fully tempered 2mm thick solar glass, solar with less iron content giving highest glass efficiency and this company has a manufacturing facility that can cater 40% of country solar glass needs. This company name is Borosil Renewables Limited and this company promoted by Popularly known Borosil Limited which manufactures Speciality Glass products.
Analysis of Borosil Renewables:
This company will add a 500 tonnes per day solar glass to cater to incredible demand from Indian solar industry. The plant will be established in the state of Gujarat. It is engaged in the manufacturing of low iron solar glass for application in photovoltaic panels. The company also exports the products to the Europe, Turkey, USA and many more regions across the world.
Borosil Renewables expects exponential growth from the boom that currently running in the deployment of solar power generation capacities, with the Indian Government having set a target of increasing caoacity from current 40 GW to 300 GW by 2030 with increased focus on domestic production of modules.
During the last few years the Indian government has launched several schemes like SECI and Kusum for the development of Solar industry. Also strong demand coming from the public, it will be get benefited as it is solo solar glass manufacturer.
Positives of Borosil Renewables:
There is strong moat running behind the stock as is almost monopoly stock and the central government has been strongly driving industry by introducing schemes to get achieved the targets.
Financials of Borosil Renewables:
Borosil Renewables market cap is ₹4136 Cr. And the stock currently trading at 317. Company’s exports grown with 33% CAGR in last 3 years as European market is large customer you look at company return ratios they are generating 29.4% of ROE, 19% of ROCE and Net Profit margin is 23.51%. If you look at share holding pattern Promoters are holding 61.7%, FIIs are holding 5.26%, Public holding 32.92% and DIIs are holding 0.04%. The company is almost debt free and constantly generating positive cash flows from their operations. Company promoters has zero pledge and posted good quaryerly results
Technicals :
Borosilicate Renewables Ltd currently trading around ₹318 the current price is attractive and we can enter as it’s in bullish range, If it is falling ₹300 is the strong support, then 282 is the next strong support. Till 300 level you can add it. Stock price showing strong momentum upwards and trading above all short and long term moving averages.
Conclusion :
As we are looking for long term at current market price we can add the stock. Then 300 and 282 are the important levels to add this stock in corrections. Looking forward there is huge scope for Solar Energy as everybody looking to decrease fossil fuels consumption and the company is market leader in this segment.
An alcoholic stock which is getting benefited from Ethanol Blending as Indian government has been taken an initiative to decrease the fossil fuels consumption. As we don’t have enough ethanol resources to blend fuels we can take it as positive for the company. This company is from small cap and after 10 years of consolidation (2009 – 2020), company delivered 500% returns in stock price within a year.
This company Name is Globus Spirits which was incorporated in 1990. They manufactures ENA (Extra Neutral Alcohol), which is the very core raw material for alcohol manufacturers.
Also they are manufacturing their own brand of Alcohol, By establishing their plants, where is no other manufacturers in making Alcohol like Haryana, Bengal and Rajasthan, so that they are able to maintain better margins in the profitability.
They have unique fungible machinery which can manufacture both ENA (Raw material for alcohol) and Ethanol what they need, it works for both.
Business Segments :
Globus Spirits have two business segments one is B2B (Business to Business) and B2C (Business to Customer). In B2B segment they supply ENA to the Alcohol Manufacturers. They are able to generate 44% of their revenues from B2B, Also it’s the backbone for the company financials and stability since inception.
Also they are doing franchise bottling business through which they supplying bottles to the alcohol companies and generating 1% of revenues. Also generating 12% of revenues from selling Byproducts which comes from waste material produced in manufacturing ENA as their raw material is Broken grains.
In B2C segment Globus Spirits manufactures their own brands of alcohol and they are getting 43% of the revenues from this segment, also maintaining good margins in this segment. Globus spirits continuously growing their B2C Business as it is having higher margins.
Positives :
Globus is the one of largest grain based ENA manufacturer in India with a capacity of 500 KLPD. Reputed IMFL players are the customers for Bulk Alcohol and they are maintaining good relationship with the popular alcohol brands from 20 years. Globus going to establish Fungible manufacturing facility which can produce both ENA and Ethanol with a capacity of 420 KLPD. So they can do business either side where demand goes high.
Negatives :
If Government changes the regulations the fundamentals of the company may impact and this company majorly depending on grains, if the farming and monsoon is not well, automatically their raw material cost may increase that can impacts the profitability of the company. Currently there is no competition if any competitor raises then Globus might be impacted.
Financials :
Companies net profit is growing and dreading the debt. Promoters and FIIs are increasing their shareholding gradually. The company is trading at attractive valuations when it compares to the Industry P/E. Key support levels are S1 – 660, S2 – 550 and S3 – 500.
Conclusion :
As a long term investor you can add Globus Spirits in every 10 – 15% fall and the key support levels are mentioned above to accumulate further in corrections.
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Disclaimer : Before taking any position do your own erase arch before investment else take a help from your financial advisor.
Disclaimer : Before investing into this stock please do your own research else take an advice from your financial Advisor.