Borosil shares rally 6% as co begins placement for Rs 250 cr QIP issue

Borosil’s shares surged up to 6.6 per cent at Rs 367.50 per share on the BSE in Tuesday’s early morning trade. The share price of the company is presently trading near its 52-week high of Rs 420, hit on February 16, 2024. The company had hit its 52-week low of Rs 1,625.05 on October 16, 2023. 

The recent uptick in the stock price came after the company on Monday announced that it has begun its Qualified Institutions Placement (QIP) after boards approval, fixing the floor price at Rs 331.75 per share. The company aims to raise up to Rs 250 crore through this route, the company said in an exchange filing on Monday. 

Borosil Limited specialises in the manufacturing of laboratory glassware and microwavable kitchenware. The company distributes its products, including microwavable and flameproof kitchenware and glass tumblers, through a vast network of over 15,000 retail outlets. 

Borosil operates three manufacturing facilities to support its production needs. Additionally, the company exports its products to more than 70 countries worldwide, facilitated by its four manufacturing facilities.

In the fourth quarter of the financial year 2023-2024, Borosil revenue saw a jump of 30.14 per cent year-on-year, amounting to Rs 235.61 crore. However, on a quarterly basis, revenue declined by 24.04 per cent. Similarly, its net profit rose by 61.27 per cent year-on-year, reaching Rs 5.08 crore for the quarter. 

The company's net profit margin for Q4 2023-2024 stood at 2.16 per cent, reflecting a 23.92 per cent increase from the same period last year. On a quarterly basis, however, there was a significant decline of 82.07 per cent in net profit margins.

At 11:00 PM; the share of the company was 3.63 per cent higher at Rs 357 per share on the BSE. By comparison, the BSE Sensex was trading 0.33 per cent higher at 77,598 levels. 

The shares of Borosil are presently trading at a price to earnings multiple of 45.95 times with an earning per share of Rs 7.50.