Rs 550 crore order book: This railway wagons company achieved 108.64 per cent volume growth YoY basis & bags new orders worth Rs 2,560.31 lakh from Indian Railways
The stock gave multibagger returns of 746 per cent from its 52-week low of Rs 226.40 per share.
Cosmic CRF Ltd (CCL) has reported exceptional growth in its first quarter of FY 2024-25. The company achieved a staggering 108.64 per cent year-over-year volume growth, marking its highest-ever quarterly sales since inception. This robust performance is driven by a strong order book of Rs. 550 crores for both CCL and its subsidiary, N.S. Engineering Projects Pvt Ltd. The latter is also progressing rapidly, with plant commissioning expected in August 2024, six months ahead of schedule. CCL's installed capacity is set to expand significantly, reaching 70,000 tons per annum by March 2025.
Financial performance has been equally impressive. Q1 EBITDA surpassed the previous year's by a substantial margin, and the company is confident of exceeding FY 2023-24 sales and EBITDA margins. The management attributes this strong performance to increased volumes and operational leverage. CCL has successfully achieved its planned installed capacity and has a robust pipeline of orders worth Rs 119 crore. The company is actively exploring strategic partnerships, including a potential tech tie-up with a major Russian railway giant, to further solidify its position in the wagon industry.
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Earlier, Cosmic CRF Ltd has secured new orders totalling Rs 2,560.31 lakh (inclusive of GST) from three domestic Wagon Manufacturing Companies and six Indian Railways divisions. The first order, worth Rs 903.21 lakh, involves supplying 324 sets of CRF Sections for BOXNS, BOSM, and BOXNHL Wagon models to a domestic Wagon Manufacturing Industry within six months. The second order, valued at Rs 818.94 lakh, entails providing a mix of 122 sets of CRF Sections for BOXNHL Wagons, 236 sets for Centre Cill Wagons, and 16 sets for other configurations to another domestic Wagon Manufacturing Industry, also with a six-month completion timeline. The third order, amounting to Rs 838.26 lakh, was placed by Indian Railways for the supply of 1,387 sets of CRF Sections for Side Top/Body Top Arrangements, 2,142 sets for Side Stanchions, and 240 sets for BOXNHL Wagons, to be delivered within six months. These orders collectively underscore Cosmic CRF Ltd.’s prominent position in the wagon manufacturing industry and reflect the company's commitment to timely and high-quality project execution.
Today, shares of Cosmic CRF Limited plunged 4.44 per cent to Rs 1,915.4 per share from its previous closing of Rs 2,004.30 with an intraday high of Rs 2,044 and an intraday low of Rs 1,904.50. The stock has a 52-week high of Rs 2,112.60 and a 52-week low of Rs 226.40.
Cosmic CRF is engaged in the manufacturing of railway components, sheet piles and structures. Cosmic CRF Limited is a qualified and RDSO-approved supplier of cold-rolled stainless sections to renowned wagon manufacturers. In addition to this, the company also supplies cold rolled stainless sections to direct orders of the railways through tender procurement.
Cosmic CRF Ltd has a market cap of Rs 1,570 crore and as of July 31, 2024, the company’s order book stands at Rs 550 crore. The stock gave multibagger returns of 746 per cent from its 52-week low of Rs 226.40 per share. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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