COSMOFILMS LIMITED

Established in 1981, Cosmo Films Limited today is a global leader in speciality films for packaging, lamination and labeling applications. Its films offerings include biaxially oriented polypropylene (BOPP) films, cast polypropylene (CPP) films and soon to be offered biaxially oriented polyethylene terephthalate (BOPET) films.. With manufacturing units in India & Korea, Cosmo has a BOPP manufacturing capacity of 200,000 TPA and CPP manufacturing capacity of 9,000 TPA with a sales turnover of around USD 311 Million (INR 21.63 Billion) in FY 2018-2019. Cosmo is the largest BOPP films exporter from India and the world’s largest manufacturer of thermal lamination films. Cosmo offers a comprehensive range of speciality films for flexible packaging, lamination, labeling and industrial applications, including films such as high barrier films, velvet lamination films, synthetic paper.. Apart from a dominant share in the Indian market, Cosmo exports to more than 80 countries worldwide. Cosmo’s customer base includes the leading global flexible packaging and label face stock manufacturers like Amcor, Constantia, Huhtamaki, Avery Dennison etc., which service brands like Pepsico, Coca Cola, Unilever, P&G, Britannia, Parle, CP, Reckitt Benckiser, Nestle, Mars etc. Cosmo also has an extensive network of channel partners across the world for distribution of its range of lamination films. The financials of the company is good, RoNW is 18.98% and at CMP its looks fairly priced. Price difference is around 25% and acceptance ration as per current share holding for retail will be around 3%, so we may expect the final acceptance ratio may be around 10% and profit may be 3%. So we give NEUTRAL rating to this buyback.