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Borosil Renewables hits record high; spurts 88% in eight days

Borosil Renewables hits record high; spurts 88% in eight days


Borosil Renewables jumped 9.66% to Rs 307, extending its winning run to eighth trading session.

The stock has advanced almost 88% in eight trading sessions from its previous closing low of Rs 163.35 on 17 December 2020. Shares of the solar glass manufacturer was currently frozen at the record high level of Rs 307.90. The counter has jumped nearly 1000% from its 52-week low of Rs 28 hit on 25 March 2020.

In last one month the counter has surged 144%, outperforming the S&P BSE Small Cap index which rose 6.33% in the same period.

Earlier this month, Borosil Renewables said that the securities issue committee of the board approved the closure of the qualified institutions placement (QIP) issue on 17 December 2020. The sub-committee of the board approved the issue of 1,58,04,030 equity shares at a price of Rs 126.55 per share, aggregating to Rs 200 crore, to the eligible qualified institutional buyers in the QIP. The company said that the gross proceeds of the issue is approximately Rs 200 crore. After deducting the issue expenses (including fees and commissions) of approximately Rs 4.35 crore, the net proceeds of the issue are approximately Rs 195.65 crore.

On the technical front, the stock’s RSI (relative strength index) stood at 95.05. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock is trading above its 50 and 100 days simple moving average placed at 132.95 and 104.96 respectively. These levels will act as crucial support zones in near term.

Borosil Renewables is engaged in the business of manufacturing of extra clear patterned glass and low iron solar glass for application in photovoltaic panels, flat plate collectors and greenhouses. The company commissioned it’s a solar glass manufacturing facility in Gujarat in 2010 and has doubled production capacity to 2.4 GW per annum.

The company reported a net profit of Rs 14.06 crore in Q2 FY21 as against net loss of Rs 2.17 crore in Q2 FY20. Net sales during the quarter zoomed 97% YoY to Rs 114.09 crore.

Source: Capital Markets
Anand Gupta Editor - EQ Int'l Media Network