Smallcap packaging stock zooms 44% in 2 days on strong Q4 results

Business Standard

23-05-2025

Cosmo First share price today
Shares of Cosmo First soared 20 per cent to ₹953.50 on the BSE in Friday's intra-day trade, extending its Thursday's rally, backed by heavy volumes.
In the past two days, the stock price of this smallcap packaging company has zoomed 44 per cent after the company reported strong earnings for the quarter ended March 2025 (Q4FY25). In the past two weeks, the stock has skyrocketed 71 per cent from its May 9, 2025 intra-day level of ₹558 on the BSE. It had hit a 52-week high of ₹1,084.10 on December 18, 2024.
At 02:56 PM; Cosmo First was quoting 17 per cent higher at ₹933.10, as compared to 0.85 per cent rise in the BSE Sensex. The average trading volumes at the counter jumped nearly 10-fold. A combined 2.67 million equity shares representing 10.2 per cent of total equity of Cosmo First changed hands on the NSE and BSE.
Strong Q4 results
For Q4FY25, the company reported a 80 per cent year-on-year (Y-o-Y) jump in PAT at ₹27 crore. Earnings before interest, taxes, depreciation and amortisation (Ebitda) was up 26.9 per cent at ₹85 crore, backed by higher speciality sales and better BOPP & BOPET film margins.
The company said Ebitda would have been better but for a one-time non-recurring cost of ₹4.3 crore for thermal line shifting from Korea to India (bringing in 10 crore annual efficiencies) and a 10 per cent lower volume of BOPET film due to a planned shutdown.
The company further said it invested ₹1,180 crore in the last 3 years (including ₹502 crore in the last year) in multiple growth projects including BOPP, Cast Polypropylene Line (CPP) & Polyester lines, Metallizers, Coating lines, Window / PPF films, Zigly and Rigid Packaging) and these will yield a significant ramp up in revenue as well as profitability in the next 2 to 3 years.
Management commentary
The company's focus will be taking full leverage of the new investments, growing specialty film sales, expanding in international geographies and pushing down costs. The new film lines are the most cost-efficient and should make Cosmo more competitive in the market.
Specialty Chemicals is already earning healthy ROCE. In Zigly, we are expecting profitable growth in services (including Vet and Grooming). Our focus shall continue to be on expanding services particularly Vet care services as well as launch Private labels to improve margins on Product Sales.
CPP with an annual capacity of 22k Mt started operations from March 2025 while Sunshield films from May 2025. The company has successfully done pilot runs with 50+ distributors, who are going to distribute both Sunshield films and Paint Protection films. The BOPP line having an annual capacity of 81k Mt p.a. is also expected to start operations from Q1FY26.
Cosmo First is a global leader in specialty films and an emerging player in specialty chemicals (Masterbatches, Adhesive & Coating chemicals), Rigid Packaging (Cosmo Plastech) along with the first digital Omni channel Pet care business under the brand name 'Zigly'.