GUJARAT BOROSIL LTD - BUY

Gujarat  Borosil Limited ( GBL) is a Company promoted by another  BSE listed company Borosil Glass Works limited (BGWL)  which is the leader in microwavable kitchenware   and laboratory glassware in India.BGWL holding close to 75% stake in Gujarat Borosil Ltd. Till 2010 GBLwas  manufacturing Sheet Glass and  later closed down this business  due to unprofitable operations.Thereafter company ventured into the manufacturing of  Low Iron Solar Glass which is used in Solar Photovoltaic Industry.GBL is the is the first and only manufacturer of solar glass in India and exporting  major portion of its products.As we are aware, European couturiers are the biggest users of Solar systems and this region was in a deep recession in last few years.Even in this tough business environment company could mark its presence in western market .In our country too the significance of solar energy is increasing and lot of scope left in this industry and company's product .Gujarat Borosil has the capacity to produce  more  than 4.2 million m2/ of glass per year. This is enough to help generate nearly 600 MW of solar power.Borosil specializes in producing 3.2mm and 4mm low iron glass widely used in the solar industry.In order to reduce its dependency on a single product ,last year company started the production of Patterned glass for Architectural applications. As per the available reports and feed backs from the market, this product is well accepted and it may help the company to turn around earlier than expected.

What attracted me to this company is its promoters flexibility and willingness to adapt quick changes in their strategy and even the product line to improve the performance of their companies. Take the case of its parent company Borosil Glass Works (BGWL) itself .About ten years back Borosil was a loss making company and its share price was below Rs.10 . Thereafter they identified some niche segments and turned to profit and now its stock price is quoting above Rs.1000 .I believe ,the current situation of Gujarat Borosil is almost same where Borosil  was 10 years back.Now the company identified two segments( solar glass and Patterned glass )  as growth engines . Potential of both these products are very  good  and with promoters  vast experience in glass industry Gujarat Borosil  may script a big success story few years down the line.Any serious  initiatives taken by the new government which is coming to power in near future to improve the usage of solar energy will change the future of this one and only maker of low iron Solar Glass in our country.

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In latest December quarter ,company reported a net profit of Rs.1.72 Cr v/s a loss of Rs.63 Lakhs  reported in same period last year. This is a stock worth taking a risk but only for  those with enough patience.Stock is currently trading around Rs.8 and listed only in BSE.( Scrip Code -523768)

Link to Company Website HERE 


Link to Annual Report HERE

Suggested Reading for more Info 

1) Low Iron Glass for Concentrating Solar Power (CSP) – Markets to Reach $11.3 Billion By 2020

 
2) India's first low iron glass gets underway to serve crystalline PV module market


Disc: It is safe to assume that I have vested interest in GBL