Shares of the leading company in specialty films for flexible packaging, laminating, labeling, and industrial sectors surged by 4.6% to ₹608.50 per share on Thursday, following a robust 36% increase in net profit quarter on quarter.
At 10:55 a.m., Cosmo First Ltd shares were trading at ₹603.60 per share, up 3.80% on the Bombay Stock Exchange from the previous close price. The company has a market capitalization of ₹1,526 crore.
As per the company’s filing, Cosmo First Ltd announced a consolidated net profit of ₹15.38 crores for the quarter ending March 2024 (Q4FY24), marking a 36% rise from ₹11.36 crores recorded in Q3FY24. Additionally, the company’s total revenue for the same quarter surged by 2.7%, reaching ₹641 crores compared to ₹624 crores in the previous corresponding quarter.
The company’s Board has proposed a dividend of ₹.3 per share. The increase in EBIDTA is attributed to higher specialty sales and improved margins in domestic BOPP films since March 2024.
Despite the BOPET film industry margins remaining negative, the Specialty Chemical subsidiary’s EBITDA has improved, primarily due to enhanced realization of chemical coatings. The company expects Cosmo Specialty Chemical to achieve double-digit EBITDA and over 20% ROCE in FY25.
Cosmo First, present in over 100 countries globally, is a leading provider of specialty films and is emerging in specialty chemicals, rigids, and digital-first pet care under the brand ‘Zigly’.
The company foresees profitability from new verticals like Specialty BOPET films, Sunshield films, Rigid Packaging, and Specialty Chemicals.
With diversified businesses, the company targets a 20% CAGR topline growth over the next three years, with a corresponding return growth. Estimated capex for FY 2024-25 is INR 300-350 Cr. Despite industry challenges, Cosmo achieved double-digit EBITDA in FY24, mainly driven by specialty film sales.
Cosmo First’s shares have declined by 5% in the last six months and 7% in the last 12 months.
Written by Omkar Chitnis
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