Is Borosil a future multibagger

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by vij, Sep 19, 2016.

  1. vij

    vij Member

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    I hear everyone say "borosil lelo" at the showrooms selling microwave ovens. I also constantly notice people within my family/friends thinking Borosil is a "type of material" and saying things like "have to use only borosil for microwaving", "have to buy some borosil to use microwave", almost making Borosil look like a MOAT.

    The company also seems fairly diversified with growth potential. Looks fairly valued too. Your view on the stock.
     
    Last edited: Sep 19, 2016
  2. Guru Vachaal

    Guru Vachaal Let's discuss the fundamentals..

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    Financials say that material cost is too high. Lay Investors should stay away from low OPM companies.
     
  3. vij

    vij Member

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    Indeed, their total expenses and operating revenue cancel each other, but they have "Other Income" that gets their "Net Margin" look good. Wonder what that "Other Income" could be.
     
  4. Guru Vachaal

    Guru Vachaal Let's discuss the fundamentals..

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    I believe OPM should be atleast 10% to be eligible to even consider a company. Say Good luck to those who have made or will make money in Borosil and look for other better options.
     
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  5. MoneyWorks4ME

    MoneyWorks4ME Active Member

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    People are not realizing that it just manufactures glass products. anything unique with great moat. I don't think so. Borosil Glass
     
  6. vij

    vij Member

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    You are right. It may not be a conventional MOAT, but it sure seems to have people's imagination and trust(misguided or not) and that qualifies for a MOAT in some small way imo.

    I have not invested in Borosil. I am considering it due to my real life experience of how people treat the brand. All opinions welcome.

    1. Borosil is the "GO TO" range of microwave proof utensil. It's not only the premium player in that category but also has cornered the market. It dominates eCommerce sales in this category and all the people who have operated a microwave oven have probably purchased and/or been aggressively recommended borosil.


    2. Could the microwave penetration improve? If it does, then Borosil will benefit. Microwave sales were stagnant for a couple of years but recent data suggests a pickup.

    3. The acquisition of hopewell is useful.

    4. Their borosilicate microwaveable glassware are beautiful and have supreme quality and finish. They are also presented well and I dare say they have made a name for themselves there. In the last 2 years and more so in the last 1 year they have tried to use this 'brand goodwill' and have entered the kitchen appliance niche and now have products like Oven Toaster Griller, Chopper & Cutter, Hand Blender, Induction Cooker, Juicer & Mixer Grinder, Sandwich Maker, Toaster, Electric Kettle, Rice Cooker.

    5. Pharma packaging and storage standards have been questioned by FDA and this seems to be a universal factor in all warning letters and observations. Brosoil's CEO expects to get big business as pharma standards are revised and improved. Their Klasspack acquisition has been done keeping this in mind.

    I also liked this video. Its good (like any company video)


    The "Borosil" most of us know and the "Borosil now" are 2 different entities maybe. I welcome all opinions. Lets hear it!


     
    Last edited: Sep 21, 2016
  7. BombayBoy

    BombayBoy Well-Known Member

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    All the gains and super stories you hear or read about Borosil "multi-bagger" is down to one thing - realty. Borosil compound at Marol, Andheri.

    Is it an exception? No. Phoenix Mills, Ruby Mills, Empire Industries, Hindustan Composites are a few which have capitalised on the land banks they held from the time when it was Bombay and manufacturing was what services is today. The businesses moved to Gujarat and the rest is history.

    But, let's talk about moat, margins, cash flow and brand value.

    Is it a future multi-bagger, take out the cash on the book (IDK the figures) and scan the records for any real estate that Borosil has in Mumbai which it can monetise and you'll probably have the answer.
     
  8. saturn

    saturn Member

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    The discussion here is "multi bagger or no" excluding the cash on hand and landbank (both factors probably already known to and priced in by the market). Any views keeping this in mind.
     
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  9. vij

    vij Member

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    Decided against. And missed the flight. Stock shot up 25% in last 1 week.
     
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