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ICICI Securities Report
We believe Borosil Ltd. is on track to report revenue compound annual growth rate in mid teens and Ebitda margin in high teens over FY25-26 as:
its capacity expansion has helped fulfil the latent demand in the market. The capacity expansion will also help the company maintain strong growth rates over FY25–26E.
The company also has potential to premiumise its portfolio with the capacity expansion in glassware as well as opalware.
We believe Borosil has potential to steadily expand its distribution network over the next decade. With a correction in commodity prices, operating leverage and portfolio premiumisation will likely help the company steadily expand its Ebitda margins.
We also note the QIP proceeds will likely help Borosil attain net cash status, resulting in lower interest costs as well as higher other income. We remain positive on Borosil.
With Borosil's share price gaining ~32% over the past three months, we revise our rating to Add, from Buy.
We value the stock at a DCF-based revised target price of Rs 468 (earlier: Rs 445; implied P/E 52 times on FY26E).
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