The other demerge Co Borosil Ltd will list tomorrow
“Trading Members of the Exchange are hereby informed that effective from Wednesday, July 22, 2020, the equity shares of Borosil Limited shall be listed and admitted to dealings on the Exchange in the list of T Group of Securities.”
https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20200720-16
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Got the Boro Ltd shares in the accout today. Combining all demerged entities currently is a much higher price than before de listing. Any insights on how the price discovery process works and what does the situation look like for Borosil?
Thanks
Demerger was for value unlocking and proper structure
Borosil had bad results last quarter and we need to understand management guidance from Concall transcript about future prospects which were bright before Covid
Competition stocks were going up yesterday
Borosil Ltd has uploaded transcript of their concall for quarter ending March 20. Some highlights as below
- One time expense of 18 Crores for expenses related to de-merger (including stamp duty)
- One time expense of 5 Cr in CPD division for write-off of furnace 3 Cr and pad printing machine 2 Cr
- Non glass items makes up 40% of CIP sales (around 70% imported, mainly from China)
- Klass pack has 50% spare capacity
- Larah peak revenue would be 180-200 Cr and EBITDA would be 26-28%.
- Vyline EBITDA of 11-12 Cr in included in Borosil Ltd. EBITDA for Q4
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Great write up on Borosil and its very detailed
Thanks for sharing
Borosil is doing regular acquisitions and going forward it will be very big giant in 5-10 years
Attended today’s AGM for Borosil Ltd. Only 5 members registered for speaking but only 1 could join in. One important clarification provided my management that all of the promoter shares are now dematerialized and hence they expect the stock to come out of T2T segment by next week.
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Could you please share notes if you have made. Apologies I could not attend.
Rgds
There was no presentation done by management and only one members asked questions. So management provided answers to those questions. So meeting ended in 35 minutes. Most important point clarified by management was about coming out of T2T segment. Rest were as below
- Borosil wants to be most customer centric company for daily use Table and Kitchen product company. Hence they have added opalware, storage containers, kitchen appliances etc in last few years.
- Borosil has high fixed cost structure due to which they have lower ROE/margin profile. But that also means higher operating leverage which could play out as volume goes up.
- Name change from Borosil Glass to Borosil Ltd as company is venturing into non glass items. Now non glass item sales is more than 100 Cr.
- Borosil Technologies is focused on developing import substitution lab equipments, competing with European and American competitors. Niche but high growth area.
- Real estate and alternate investment funds - These investments were done few years back. Will get matured in 2-3 years. Post that, money would be placed in liquid funds as per current treasury policy. No money in equity mutual funds now.
- Resolution no. 10 to authorize BoD to create charge over assets in favor of financial institutions to borrow upto Rs 250 Cr - This is enabling resolution to allow company to borrow in case they feel the need due to organic or inorganic growth opportunities.
- Micro Pipettes - These are purchased in India
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Borosil Corporate AV
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Purchased? You mean contract manufacturing? Or do they manufacture it themselves? Micro Pipettes are required to be highly precise, just like the Borosil laboratory glasswares. So, contract manufacturing may not be a very good idea unless strong quality control can be ensured.
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Outsourced. They have plan to manufacture them in future.
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Hi
While Borosil forays into cookers and microwave ovens we have others entering tableware segment.
From a pure price action perspective there is no confirmation for a long trade.
Rgds
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It’s negative for Borosil but it’s a very huge market everyone can get there chunk of share. Also we need to check they are entering in Steel segment not in glass I believe…
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Good results in current scenario. 142 Cr Income as compared to 176Cr last year. But much better than 59 Cr in Q1. PAT of 9.3 Cr as compared to 16.9 Cr last year. But much better than loss of 7.4 Cr last quarter.
Most importantly furnace at Jaipur started in mid September. So its impact can be seen in current quarter. Profitability of the scientificware division continues to improve as indicated by the management in previous concalls. Malls were allowed to open only from Aug 5 so company would have lost more than 1/3rd of the quarterly business in modern trade. Since Q3 is the best quarter for the company (due to festivals), would be interesting to listen to management commentary during the concall.
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Extract related to Borosil
Laboratory glassware maker Borosil Ltd has received a purchase order for an undisclosed quantity of vials from an Indian company that is currently testing its vaccine candidate, and is in discussions to supply vials to a few companies, including firms based outside the country.
“The sense is that vaccine makers are starting to ramp up production now and are placing trial orders to judge the ability and speed of vial manufacturers to supply. Clinical trials are also expected to get over in the next few weeks, following which utilisation of capacities will certainly go up, keeping in mind that the country is planning to vaccinate 250-odd million people by July,” Shreevar Kheruka, MD of Borosil, said.
Seems like reason for today’s upmove…
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