Borosil Renewables with a market-capitalisation of less than Rs 5,000 crore rallied by more than 600 percent in 2020. In December alone, it saw about 140 percent vertical rise.
The company which recently concluded its Rs 200-crore QIP in the month gone by is the sole manufacturer of solar glass in India. The funds raised through this QIP will help us undertake our planned expansion to capitalise on the business opportunity that our industry offers, the company said.
“Borosil Renewables has witnessed a spectacular rally over the month of December. Renewed investor interest in the stock coupled with solar glass maker announcement of plans to raise funds through a qualified institutional placement, triggered this sharp up move,” Aamar Deo Singh, Head of Advisory, Angel Broking Ltd told Moneycontrol.
“The focus on renewable energy from a domestic perspective also supported the prices. Expectations of the company exceeding its performance in coming years has further helped the stock rally,” he said.
BRL is engaged in the manufacturing of low iron solar glass for application in photovoltaic panels, solar thermal flat plate collectors, and greenhouses and is the only solar glass manufacturer in India.
With renewed Govt. focus on Make in India, investors have lapped up shares of Borosil Renewables, but if someone is already holding the stock can book profits, suggest experts, and if someone plans to put fresh money they should wait for a decline.
Singh is of the view that booking profits at current levels can be a good idea given the stupendous returns that the stock has generated over the past month.
“However, in case one is interested in holding onto the stock as well, then probably booking profits in 50% of the holding and keep the rest, could be a good idea,” he said.
For someone who wants to put fresh money should wait. “Fresh entry is not advisable as the run-up has been a steep one. So, being cautious of entry at current levels is advisable and waiting for a correction in the stock could be a good idea,” added Singh.
Technical View:
Expert: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
In this quarter the stock has rallied over 300 percent. Post 150 price volume breakout stock was soaring rapidly. The sharp surge in the price action surprised most of the traders as well as investors.
The medium-term texture of the chart is positive and likely to continue in the near term. However, in the short-term time frame, the stock is in to the overbought zone and profit booking is not ruled out if it trades below the 279 level.
On the flip side, above 279 uptrend rally likely continue up to 325 and 350. The short-term structure indicates traders may prefer to place a cautious stance near the 280 support level.
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