Cosmo Films Ltd. (Code: 508814) (Rs.103) is one of the dominant players in the Bi-axially Oriented Polypropylene Films (BOPP) market in India with a 23% market share and also one of the lowest cost producers of BOPP films in the world. It currently has an installed capacity of 56000 MTPA of BOPP films, 21000 MTPA of thermal lamination films and 3000 MTPA of metallized films. Importantly, it is the only Indian player to manufacture thermal laminated films which is a high margin business. Despite the demand supply mismatch, the company is working at 100% capacity and is further expanding its BOPP capacity to 136000 MTPA and metallized films to 10500 MTPA in phases. Last year, it also set up a 12000 MTPA coating film unit last year. Recently, it acquired GBC, a USA based company for Rs.80 cr. This company supplies thermal laminated films and equipment to Europe, North America, Japan and the Pacific region and has sales of nearly Rs.500 cr. After this acquisition, Cosmo has emerged as the
global leader in the thermal laminated segment. However considering its not so encouraging performance in Q1FY10 and fall in BOPP prices, it may end FY10 with sales of Rs.650 cr. and profit of Rs.35 cr. i.e. EPS of Rs.18 on its current equity of Rs.19.40 cr. Also, the promoter group did not opt to convert 31 lakh convertible warrants, which were allotted to them at Rs.107 in February 2008.
Source: Internet (Moneytimes)
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