Healthy Fiscal Results Boost Cosmo Films

Cosmo Films, a manufacturer of bi-axially oriented polypropylene (BOPP) films, has been gaining ground on the bourses on excellent financial performance.

The stock appreciated 175 per cent since January 1, 2002, to Rs 99.95 today. In fact, it advanced by over 30 per cent during last week.

Even its volumes have been soaring. The daily-average volume zoomed from 5000 shares in January to 50,000 in May. And during the first five days of June, it has gone to 3 lakh shares.

The investor interest in the stock came on the back of the company's sound financial performance during 2001-02. While the sales turnover rose 22.9 per cent to Rs 160.12, net profit rose by 58.6 per cent to Rs 17.60 crore. The firm's exports turnover rose by 45 per cent to Rs 48.82 crore.

 

The company restructured its operations by cutting costs, improving efficiency, cutting working capital, developing new applications, and sharpening focus on exports and niche products.

The company's return on equity (RoE) rose 15.7 per cent in 2000-01 to 24.7 per cent in 2001-02. Its operating-profit margin rose to 26.6 per cent in 2001-02 from 18.4 per cent in 2000-01, while net-profit margin gone up to 12 per cent in 2001-02 from 9.3 per cent in 2000-01.

Promoted by Ashok Jaipuria, the company is a major player in BOPP films business. The films are used widely in the packaging industry. About 50 per cent of its total capacity is in India. It acquired a competitor, Gujarat Propack, last year.