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Borosil Limited complete analysis📊
A Thread🧵
#StockMarket #Stocks
@kuttrapali26 @KommawarSwapnil @AdeptMarket @caniravkaria @harrie007 @mystock_myview @Ishan_Narayan_ @josephseby78 @chartbent @TheFactFindr @FaviloF @mishika_chamria @anand1377 @sahil_vi @suru27
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A Thread🧵
#StockMarket #Stocks
@kuttrapali26 @KommawarSwapnil @AdeptMarket @caniravkaria @harrie007 @mystock_myview @Ishan_Narayan_ @josephseby78 @chartbent @TheFactFindr @FaviloF @mishika_chamria @anand1377 @sahil_vi @suru27
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Contents :-
👉Company brands
👉The trend :- Premiumization
👉Borosil capturing Kitchen trend
👉Deep dive into consumer ware business
👉Deep dive into scientific product division
👉Opportunity in exports
👉Strategy for growth
👉Fundamental analysis
👉Technical analysis
👉Company brands
👉The trend :- Premiumization
👉Borosil capturing Kitchen trend
👉Deep dive into consumer ware business
👉Deep dive into scientific product division
👉Opportunity in exports
👉Strategy for growth
👉Fundamental analysis
👉Technical analysis
First, lets have a look at the brands under which the company operates 💸💸
👉Borosil has 5 brands :-
a) 2 for consumer ware division (CWD) - Borosil (for kitchen ware) & Larah (for Opalware).
b) 3 for scientific products division (SPD) - Borosil (for Lab glassware), Labquest (for Lab instrumentation) & Klasspack (for pharma packaging).
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a) 2 for consumer ware division (CWD) - Borosil (for kitchen ware) & Larah (for Opalware).
b) 3 for scientific products division (SPD) - Borosil (for Lab glassware), Labquest (for Lab instrumentation) & Klasspack (for pharma packaging).
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👉CWD is expected to grow higher contributing 73% to sales by FY25 vs SPD contributing 27%.
👉Company had 32% sales CAGR during FY19-22. Expect 27% CAGR for FY22-25 backed by tactical marketing across various platforms.
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👉Company had 32% sales CAGR during FY19-22. Expect 27% CAGR for FY22-25 backed by tactical marketing across various platforms.
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Now, lets have a look at the Major Trend :- Premiumization💹
👉Premiumization trend is clearly visible in Indian households led by higher disposable income & rising per capita GDP.
👉Trend of modular kitchen is seen even in affordable housing categories.
👉Steel utensils are upgraded to aesthetic designs of Opalware & Melamine.
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👉Trend of modular kitchen is seen even in affordable housing categories.
👉Steel utensils are upgraded to aesthetic designs of Opalware & Melamine.
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Now, lets have a look on how Borosil is capturing the Kitchen trend🤑🤑
👉Borosil has scaled up from glass to multiple kitchen products.
👉It has made a complete ecosystem from cooking, serving to storing which provides ample diversification & multiple revenue streams. It also makes appliances & accessories for comfort & ease of cooking.
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👉It has made a complete ecosystem from cooking, serving to storing which provides ample diversification & multiple revenue streams. It also makes appliances & accessories for comfort & ease of cooking.
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Now, lets deep dive into consumer ware business (CWD)🔎🔎
👉CWD was 68% of revenue in FY22 & is expected to grow at 30% CAGR over FY22-25.
👉With strong brand recall, Borosil should gain market share in newer products.
👉Larah brand has 25% market share with 100% capacity utilization which company is on track to double.
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👉With strong brand recall, Borosil should gain market share in newer products.
👉Larah brand has 25% market share with 100% capacity utilization which company is on track to double.
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👉CWD total market size is Rs. 12,850 Cr which is 22x company's CWD revenue.
👉Domestic appliance segment is Rs 9000 Cr growing at 10% CAGR.
👉Opalware has market size of Rs 900 Cr growing at 15-20%.
👉Company also commands 73% market share in glass microvables.
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👉Domestic appliance segment is Rs 9000 Cr growing at 10% CAGR.
👉Opalware has market size of Rs 900 Cr growing at 15-20%.
👉Company also commands 73% market share in glass microvables.
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Now, lets deep dive into Scientific products division (SPD)🔎🔎
👉SPD was 32% to sales in FY22. It is expected to be 27% by FY25 registering a 20% CAGR growth over FY22-25.
👉Lab glassware is 59%, Lab instrumentation is 8% & pharma packaging is 34% of SPD sales.
👉Pharma packaging (by FY24) & Lab glassware is expected to double.
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👉Lab glassware is 59%, Lab instrumentation is 8% & pharma packaging is 34% of SPD sales.
👉Pharma packaging (by FY24) & Lab glassware is expected to double.
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Now, lets have a look at company's export opportunities💱💱
👉Company is into export market (4000 Cr) for lab glassware. Started in Asia, Africa & North America from Q4FY22.
👉Glassware market is Rs 250 Cr growing 8-10%.
👉In Q1FY23, started filter paper which was a monopoly. Market is 110 Cr & will be served with lab glassware.
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👉Glassware market is Rs 250 Cr growing 8-10%.
👉In Q1FY23, started filter paper which was a monopoly. Market is 110 Cr & will be served with lab glassware.
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Now, lets have a look at company's strategy to drive growth✈️✈️
👉Borosil is marketing aggressively on leading e-com platform like Amazon, Flipkart etc.
👉The company also runs promotional ads.
👉These marketing tactics have resulted in 2 year CAGR of 43% in opalware category vs 9% of La opala RG (market leader)
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👉The company also runs promotional ads.
👉These marketing tactics have resulted in 2 year CAGR of 43% in opalware category vs 9% of La opala RG (market leader)
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👉Borosil's dinner set has higher reviews vs La Opala.
👉Their glass & stainless steel lunchbox sell at premium to Milton. They r fast inventory rotating products.
👉They have 17k direct sellers vs 12k La opala. Management wants to add 1-1.5k retail outlets per quarter
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👉Their glass & stainless steel lunchbox sell at premium to Milton. They r fast inventory rotating products.
👉They have 17k direct sellers vs 12k La opala. Management wants to add 1-1.5k retail outlets per quarter
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Now, lets have a look at the financials📰📰
👉Post capex, operating margins are expected to scale to 18% by FY25. While pat margins to 11%. ROE is expected to be 18.3% & ROCE 25%.
👉This would be due to premiumization.
👉High commodity price will dampen margins in FY23. Price hikes to elevate margins till FY25.
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👉This would be due to premiumization.
👉High commodity price will dampen margins in FY23. Price hikes to elevate margins till FY25.
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👉Expect a CAGR of 27% in topline during FY23-25 (30% CAGR for CWD & 20% CAGR for SPD).
👉Huge total addressable market with brands backing & capex outlay for growth to continue earnings momentum.
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👉Huge total addressable market with brands backing & capex outlay for growth to continue earnings momentum.
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Here is a look at the stock technically
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I hope my thread helped you in knowing Borosil Limited better than before. Please don't forget to join our telegram channel its absolutely FREE & we are doing a lot of hard work here. telegram.me
Thanks for reading,
The Market Learner.
Thanks for reading,
The Market Learner.
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