rasirana 17 Mar, 2024

Cosmo First Ltd Stock Overview

Cosmo First Limited is engaged in the manufacture and sale of bi-axially oriented polypropylene (BOPP) films in India and internationally. The company provides packaging films; lamination films; label films; and industrial films to food, beverage, personal care, and pharmaceutical industries. It also offers specialty chemicals; and operates retail and services platform that provides a range of pet care products, such as food, nutritional supplements, hygiene products, accessories, and toys, as well as vet care, grooming, and training services. In short it is in Packaging Industry. 

  • Market Cap₹ 1,248 Cr. (as on 14 March 2022)
  • Current Price₹ 475 (as of 14 March 2022)
  • High / Low₹ 773 / 451
  • Stock P/E15.9
  • Book Value₹ 503
  • Dividend Yield1.05 %
  • ROCE17.0 %
  • ROE19.6 %
  • Face Value₹ 10.0

Current Key financials:
Earnings per share (EPS): 29.95
Gross Margin: 31.81%
Net Profit Margin: 2.95%
Debt/Equity Ratio: 79.7%

Cons:

  • The company has delivered a poor sales growth of 10.7% over the past five years.

Pros:

  • Stock is trading at 0.94 times its book value
  • The company has delivered good profit growth of 30.5% CAGR over the last 5 years. 
  • The company has a good return on equity (ROE) track record: 3 Years ROE 28.5%
 

My personal take:

Before reading further, please note that this is not a Buy or Sell recommendation, it is my personal opinion about this company and currently, I hold no positions in it however in the near future I might consider adding it to my Portfolio. 
If we compare the Cash flows being generated by the Company, I feel that the COSMOFIRST stock is undervalued However, given the current market scenario,  I am in no hurry to add it. If I add it I will add it for a target of around  840.


 

 

 

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