Accumulate Borosil stocks in small lots

Accumulate Borosil stocks in small lots

By Rajiv Kapoor | 20 May, 2017

In Borosil Glass Works Ltd is the market leader for laboratory glassware and microwavable kitchenware in India and was established in 1962 in collaboration with global leader Corning Glass Works USA. In 1988, Corning divested its shareholding to the Indian promoters. The Scientific and Industrial Products division of the company sells laboratory glassware, instruments, disposable plastics, liquid handling systems and explosion proof lighting glassware through its network of dealers spread across the length and breadth of the country. The Borosil brand represents quality, accuracy and dependability, with all leading pharmaceutical companies, research and development laboratories, scientific, health and educational institutions have been loyal customers for the last 50 years. The glass finds its use in over 2,000 different products and applications, in areas as diverse as microbiology, biotechnology, photo printing, process systems and lighting.

It is a testament to the credibility of the Borosil brand that in order to get the ISO 9001 certification, it is recommended that a laboratory uses Borosil certified A-class glassware. The Consumer Products division sells microwavable and flame-proof kitchenware and glass tumblers through over 5,000 retail outlets. Borosil products are synonymous with elegance, dependability and safety. In the kitchenware segment in India, Borosil is a generic term for microwavable glassware. Borosil Glass Works Limited has promoted Gujarat Borosil Ltd to manufacture solar glass and is the first and only manufacturer of solar glass in the country. It has established a 150-ton per day low iron patterned glass furnace for the manufacture of high transmission glass used in the solar industry.

This plant is the first and only of its kind in India, and has been developed specifically for the fast growing solar industry. Borosil Glass Works Ltd has registered a net profit at Rs 8.9 crore in the quarter ended March 2017, versus a loss of Rs 6.5 crore in the same quarter last fiscal. The revenue of the company was up 17.7% at Rs 75.3 crore for the last quarter, versus Rs 64 crore for the same quarter of last fiscal. The company at its meeting held on 13 May has recommended a dividend of Rs 25 per equity shares of Rs 10 each for the financial year 2016-17. It has also considered and approved split of equity shares from Rs 10 per share to Re 1 per share, subject to the approval of its shareholders. The Borosil stock, currently quoting at Rs 8,000 on the bourses, can be accumulated by investors in small lots for long term investment.

Rajiv Kapoor is a share broker, certified mutual fund expert and MDRT insurance agent.

 

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