Investors are accumulating this small-cap stock before its buyback announcement

This company is a global leader in speciality films for packaging, lamination and labelling applications.

On November 29, the shares of Cosmo First surged 6 per cent and closed trading at Rs 796.7. The stock opened at Rs 760 and made an intraday high and low of Rs 814.2 and Rs 757.95, respectively. However, over the last six months, the stock has fallen sharply by around 35 per cent from Rs 1230 to Rs 800. 

 Yesterday, the company disclosed its plan to schedule a board of members meeting on December 1 to discuss the proposal for the buyback of its equity shares. This news infused positive sentiments around the stock. 

Cosmo First Ltd is a global leader in speciality films for packaging, lamination and labelling applications. Its film offerings include biaxially oriented polypropylene (BOPP) films, cast polypropylene (CPP) films, and polyethylene terephthalate (BOPET) films. They are the largest BOPP films exporter from India and the world’s largest manufacturer of thermal lamination films. 

FY22 was the biggest year for the company in terms of both revenue generated and net profit earned. The FY22 revenue and net profit stood at Rs 3038 crore and Rs 397 crore, respectively. 

The company has a market capitalisation of Rs 2183 crore and is trading at a PE multiple of 6.25x. The scrip has a 52-week high and low of Rs 1428 and Rs 658, respectively.     

About the shareholding pattern, 44.25 per cent of the stake is owned by the promoters, 28.32 per cent by the non-institutional investors, 5.83 per cent by FIIs, and the rest 0.94 per cent by DIIs.