We're all set for a new experience. To visit the old Ventura website, click here.
Ventura Wealth Clients
3 min Read
Cosmo First’s Market Strategy
Share

Cosmo First Ltd trades at ₹595.45 with a market capitalisation of ₹1,548 crore. With a focus on sustainability, pet care, and innovation, analysts see strong long-term growth potential.

Cosmo First Limited, formerly known as Cosmo Films Limited, has been a significant player in India's packaging industry since its inception in 1976. With a diversified portfolio that encompasses packaging films, speciality chemicals, and pet care services, the company has demonstrated resilience and adaptability in a competitive market.​

Current stock performance and market metrics

As of April 21, 2025, Cosmo First Ltd's stock is trading at ₹595.45 on the National Stock Exchange (NSE), reflecting a 1.13% increase from the previous close of ₹589.70 at 11:40 AM. The stock's 52-week range spans from a low of ₹506.60 to a high of ₹1,083.80. The company's market capitalisation is approximately ₹1,548 crore.​

Key financial ratios include a Price-to-Earnings (P/E) ratio of 12.7 and a Price-to-Book (P/B) ratio of 1.15, indicating a valuation that may be attractive to investors seeking growth at reasonable prices.

Financial performance overview

In the quarter ending December 2024, Cosmo First reported consolidated net sales of ₹723.85 crore, marking a 13.35% increase year-over-year. However, the company faced a 7.04% decline in revenue compared to the previous quarter. The net profit for the same period was ₹29.56 crore.

The company's Return on Equity (ROE) for the trailing 12 months is 7.24%, with a dividend yield of 0.51%. These figures suggest a stable financial position, although there is room for improvement in profitability metrics.

Business segments and diversification

Cosmo First operates through three primary segments:​

  • Packaging films: Specialising in Biaxially Oriented Polypropylene (BOPP) films, thermal films, and coated films, catering to industries such as food, beverage, personal care, and pharmaceuticals.​
  • Speciality chemicals: Focusing on masterbatches, coating chemicals, and adhesives, leveraging sustainable technologies to innovate within the chemical sector.
  • Zigly: A tech-enabled omnichannel platform offering premium pet care products and services, including grooming, veterinary care, and behaviour training.

This diversification strategy positions Cosmo First to capitalise on various market opportunities and mitigate sector-specific risks.​

Shareholding structure

As of March 31, 2025, the shareholding pattern is as follows:​

  • Promoters: 40.98%
  • Foreign Institutional Investors (FIIs): 3.12%
  • Domestic Institutional Investors (DIIs): 0.09%
  • Retail and others: 55.80%

The absence of promoter pledging indicates a strong commitment to the company's long-term vision.

Operational highlights and strategic initiatives

Cosmo First has undertaken several initiatives to enhance operational efficiency and market reach:​

  • Capacity expansion: The company has increased its installed capacity to 48,600 MTPA through debottlenecking and revamping of production lines.
  • Sustainability focus: Emphasising sustainable technologies in the speciality chemicals segment aligns with global environmental trends.
  • Digital transformation: The Zigly platform exemplifies the company's commitment to leveraging digital channels for business growth.

Market trends and analyst perspectives

The packaging industry in India is poised for growth, driven by increasing demand in sectors like e-commerce, FMCG, and pharmaceuticals. Cosmo First's diversified product portfolio positions it well to benefit from these trends.​

Analysts suggest monitoring the company's efforts to improve profit margins and expand its speciality chemicals and pet care segments, which could drive future earnings growth.​

Strategic outlook for Cosmo First Ltd

Cosmo First Ltd is steadily expanding beyond traditional manufacturing through focused investments in speciality chemicals and petcare. Strengthening this growth path, the company has signed a definitive agreement to acquire the "Small Animal Clinic – Diagnostic Imaging and Surgical Centre" in Mumbai through a slump sale, expected to close by May 15, 2025. This move will enhance its veterinary services under the Zigly brand, reinforcing its long-term diversification strategy.

Investors should consider Cosmo First's financial metrics, market position, and strategic direction when evaluating its stock for inclusion in their portfolio.​