The good times are over now. The stock is up for a reality check given that China is now opening up in a big way. Borosil did get some pricing advantage during Covid, which by the way is no more applicable. At the end of the day it is a commodity product subject to global pricing pressure.
I foresee atleast 30-40% correction in the stock from current levels. Margins will now start to decline. Dec quarter numbers have given us the indication. ROCE’s will go down now, margins will compress and the stock could get back to PE of less than 15x.
disc: not invested
Ujjawal Kumar
WealthCulture - Founder & CIO
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