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 Portugal, Turkey, Canada, Dubai, Russia, Sri Lank , Malaysia,

Thailand, Morocco, Nigeria, South Africa , Iran-to name few.


 This company has been on a capacity expansion spree. Company
has regularly added capacity every year. Last year the company
added about 35,000 tonne per annum of BOPP capacity which
takes the total capacity to about 91,000 tonne per annum of BOPP."

 If you look at the financials of the company FY10 sales were about
Rs 963 crore which was higher by 50% compared to FY09. Profit
after tax was about Rs 38 crore as against Rs 29 crore. Which
means an EPS of close to Rs 21 so at current market price of about
Rs 125 the stock is available at a price to earning multiple of about
6.5."
 The good part is that the company has been a regular dividend
payer since 1993. Only during one-year, in between, the company
skipped dividend. The company has declared a dividend of 50%
for FY10 also. The current price of the stock is come dividend, so at
the current price of about Rs 125 you get a dividend yield of about
4%."

 The world BOPP films market has been growing at 8% p.a., the
growth in domestic market has averaged in the range of 15-20%
p.a. The migration of manufacturing from the developed countries
is also providing opportunities for growth.

Shareholding Pattern

Promoter Institutional inveator


Private corporate bodies Others

37% 46%

10%

7%
BUSINESS PROFILE: Cosmo Films Limited manufactures bi-axially oriented
polypropylene (BOPP) film utilized in making packaging, labeling and
thermal lamination films. The company's products include wet laminating,
printing and pouching, label films, soap wrap films, over wrap films, tape and
textile, thermal laminating film for graphic finishing and selected value added
films. The company's subsidiaries include Cosmo Films Inc. and Cosmo
International (US) Inc. In January 2009, the company acquired GBC
Commercial Print Finish business. Cosmo Films has a total of 5 plants one
each in Aurangabad, Vadodara, USA, Netherlands and Korea
To strengthen its position in the thermal lamination film segment, Cosmo
Films has announced in January 2009, the acquisition of GBC Commercial
Print Finish Business.

Key Milestones in FY09

 Commissioning of new 8.2 meter BOPP line at Vadodara with production


capacity of 35,000 tonnes .
 Agreement for acquisition of GBC Commercial Print Finishing Business
from ACCO Brands, USA.
 Highest ever net sales of Rs 6,548 mn and EBITDA of Rs 1,044.5 mn
Key Growth Drivers
To strengthen its position in thermal lamination film segment, the company
acquired GBC Commercial Print, a division of ACCO brands of USA, in June
2009 for USD 17.1 million. GBC is an industry leader in thermal films and
equipments with three plants in the US, Netherlands and Korea. The deal
values GBC at around one-sixth of its annual revenues of USD 100 million. In
comparison, Cosmo is right now trading at around one-third of its annualized
topline. The demand for packaging film is growing strongly at around 8%
globally and over16% in India. To cater to this demand, the company has
expanded its capacity at a CAGR of 7.4% over last five years, with nearly
12,800 tonne capacity added in FY09. The demand for thermal lamination,
where the company is now a global leader, is expected to grow rapidly as the
traditional solvent based lamination is not environment friendly. At the same
time, the raw materials prices are likely to remain comfortable due to expected
oversupply conditions in the polymer industry with new plants coming up in
the Middle East and China.
PRODUCT PORFILE

BOPP Co-ex transparent Films

BOPP Films for Pressure Sensitive Films

BOPP Pearlised Films

BOPP Metallized Films

BOPP Antifog Film

BOPP PVdC / acrylic coated Films

BOPP WET Lamination Films (Gloss, Matte, Silky Matte)

BOPP Thermal Lamination Films (Gloss, Matte, Silky Matte. We


can even supply lower
micron thermal laminating films up to 20 micron thickness)

PET Thermal Lamination Films

BOPP Over-wrapping Films (Cigarette, Textiles, Flowers etc)

BOPP In-Mould Label Films

BOPP Universal In-Mould Label Films

BOPP Wrap around Label Films

Non-Tear able Synthetic Paper (Visiting Cards, Greeting cards,


Stationary items, Childrens Books & and many more to fulfill your
requirements.
Cosmo Films is an ISO 9001:2001, ISO 14001:2004, AIB & BRC
certified organization.They also supply thermal lamination BOPP,
polyester and nylon based. There are four production lines with
20000 MT/year capacities.
Biaxially Oriented Polypropylene (BOPP) Film

Borseal™ polymers deliver high quality packaging while improving


production efficiency

Biaxially-Oriented Polypropylene
(BOPP) films have become a popular, high
growth film on the world market because of
a unique combination of properties such as
better shrinkage, stiffness, transparency,
sealability, twist retention and barrier.

BOPP film is used in a variety of applications including.

flexible packaging
pressure sensitive tape
printing and lamination
Stationary
Metallising
flower sleeves
cable wrap and insulation

Borealis serves the BOPP market with a homopolymer product in


combination with several Borseal™ skin resins. Based on a special
molecular structure and stabilisation of the resin, these homopolymers
provide optimal mechanical and optical properties, as well as excellent
processability.
Borseal delivers a unique combination of
properties

Borseal™ polymers offer several advantages to


producers, packagers and other users of BOPP
film. Its high clarity and low haze help producers of film or packagers
to create glossy, high-transparency film that enhances the appearance
of packaging or other products.

In addition, Borseal offers high seal strength, even at low sealing


pressures and after surface treatment to keep out moisture and
contaminants. The polymer also has a high melting point for easy
processing combined with a low seal initiation temperature and a wide
sealing window thanks to the balanced polymer structure.
MANUFACTURING PROCESS
The production of biaxially-oriented PP, PET, PS, PA, etc. film is a
continuous process. In most cases it is a coextrusion process, where up
to 6 single and/or twin screw extruders are involved. Usually the base
polymer and additives are fed via a continuously operating loss-in-
weight feeder into the single screw extruder. A further cost efficient
alternative is gravimetric feeding of additive powder directly into a twin
screw feeder for optimal dispersion. The melt that passes directly inline
via the usual process for cast film, then transfers to longitudinal and
transverse stretching elements.

The performance and short term accuracy of the gravimetric feeders is


key in this process. This concept gives the producer high flexibility and
high quality of the end product, as well as substantial cost savings.
When the feeders deliver the desired massflow with an accuracy of ±
0.5% at 2 sigma with a sample time of 5 seconds, the pressure changes at
the extruder outlet are minimal, which results in the smooth operation
of the film line.

Ingredients
Depending on the size of the film line and how many layers are
involved, the typical flow ranges are as follows:
PP Pellets: 100 - 20,000 dm³/hr or 3.5 - 706 ft³/hr
Masterbatch Pellets: 5 - 500 dm³/hr or 0.18 - 18 ft³/hr
Rework (edge trims): 10 - 5,000 dm³/hr or 0.35 - 180 ft³/hr
PET Chips: 10 - 5,000 dm³/hr or 0.35 - 180 ft³/hr
Additive powder: 1 - 500 dm³/hr or 0.04 - 18 ft³/hr

The desired accuracy is typically ± 0.5-1% at 2 sigma for the base resin
and ± 0.2-0.5% at 2 sigma for the additives.
INDUSTRIAL OVERVIEW

Plastic Industry had its beginning in India in the mid twenties, LDPE
was produced in the late fifties, and HDPE in the late sixties.
Polyethylene has been the most used plastic films in India, and in the
early sixties cast polypropylene has made entry and was accepted
because of its superior properties. Stretching this film, especially in both
directions, produces even superior properties of tensile strength,
flexibility, toughness and such other. The stiffness of BOPP film is three
times that of cast film and eight times that of polyethylene film. Even
though the first BOPP process was developed in Germany in 1935, it
made its rapid commercial entry only in the early sixties. The current
world consumption is one million tonnes and the growth rate around
8%. BOPP made its entry into India only during the eighties, and the
present Indian consumption is less than 1% of the world consumption.
The basic manufacturing plant comprises of compounding
and feeding, extrusion, casting, orientation, gauging, winding, recycle,
Corona treating and profile control systems. The main line plant is
imported and auxiliary equipment and utilities are indigenously
obtained. The first Indian BOPP unit to come up was MM Rubber in
Tamilnadu closely followed by Cosmo films in Maharastra and later by
M P United Polypropylene Ltd. At present, seven units are in operation,
though thirtytwo units took license for this activity. The present
installed capacity is 6 million tonnes production. Jindal films have the
largest capacity of 1, 80,000 tpa followed by cosmo Films Ltd with 70,000
tpa. The Indian market has applications for BOPP in areas relating to
overwraps, inner liners, tapes, pouches/strip packs, print laminations
and decorative and release films and such other. Adhesive tapes, print
laminations, cigarette wrapers and biscuit wrappers together account for
more than two thirds of the BOPP market in India today. It is estimated
that the BOPP demand will go up to 17000 tonnes by 1997 reflecting an
annual growth rate of 13.5%. Of the seven manufacturers, five have
obtained their plants from Bruckner, Germany, one from Marshall
Williams of USA and another from Mitsubishi of Japan. The Mitsubishi
plant is of the Bubble process, while all other plants are of Tenter
process. BOPP is presently manufactured by over thirty companies
around the world. Europe and North America account for roughly 80%
of the total market. Plants of maximum unit capacities of 16000 tpa with
8 meter width of BOPP at speeds of 300-500 meters per minute are also
in use. Tenter is the most widely used process and some of the recent
improvements are automatic thickness and profile controls, and
computerised process controls. A major difference between a typical
International plant and a typical Indian plant is the difference in size.
This results from the larger international market and the consequent
long runs between product changes. Infrastructural weaknesses, the
very high cost of maintenance and spares, and end user requirements
also inhibit usage of large capacity plants in India.

PRICE DATA

117.10
CMP (as on March 26, 2010)

0.48
Beta

2,276
Market Cap ( Rs mn)

138/59
52 Week High-low

14,976
Average Daily Volume

Particulars 2006 2007 2008 2009 2010


Net Sales 424.11 535.61 585.16 654.81 753.26
Net profit 12.86 24.82 45.5 42.74 45.82
Equity Capital 19.44 19.44 19.44 19.44 19.44
Market
Capitilization 134.72 143.27 166.21 120.82 231.63
EPS 6.62 12.77 22.89 21.98 23.57
Debt/Equity Ratio 1.32 1.06 0.79 0.9 0.83
P/E Ratio 10.12 5.77 3.74 2.83 5.06
ROCE % 8% 12% 17% 13% 11%
RONW % 10% 18% 27% 19% 17%

Product of Cosmo Films Limited

Wet Laminating 18 PCT-2 It is a co-extruded, plain


and one or both side treated Bi-axially Oriented polypropylene film .10
PCT-2 It is a co-extruded, plain and both side treated Bi-axially
oriented polypropylene film.

Printing & Pouching 20 HST-1 It is a co-extruded, both side


heat sealable and one side treated Bi-axially oriented polypropylene
film. 18 HST-1 (LCF) It is a co-extruded, both side heat sealable
and one side treated Bi-axially Oriented Polypropylene film.

Label Films 38 PCT-1 (LB) It is a co-extruded, plain and one


side corona treated Bi-axially oriented polypropylene film. 40 PCT-1
(LB) It is a co-extruded, plain and one side corona treated Bi-axially
oriented polypropylene film.

Soap Wrap Films 18 HST-1 (GR-II) It is a Co-extruded,


both side heat sealable, one side surface modified and other side
treated Bi-axially Oriented polypropylene film.

Over Wrap Films 18 HST-0 (HS) It is a co-extruded, both


side heat sealable and untreated Bi-axially oriented Polypropylene
film.20 HST-0 (HS) It is a co-extruded, both side heat sealable and
untreated Bi-axially Oriented Polypropylene film.

Tape & Textile 23 PCT-1 (HCL) It is a co-extruded, plain,


one side treated Bi-axially Oriented polypropylens film.29 PCT-1
(HCL) It is a co-extruded, plain, one side treated Bi-axially Oriented
Polypropylene film.

Thermal Laminating Film for Graphic Finishing 24 PCT-2


(DL) It is a Bi-axially Oriented Polypropylene film, uniformly
extrusion coated with adhesive all along the film surface, which
enables lamination by heat and pressure with paper products. 27 PCT-
2 (MDL) It is a Bi-axially Oriented polypropylene film. Uniformly
extrusion coated with adhesive all along the film Surface, which
enables lamination by heat and pressure with printed-paper board.
Industrial Overview

Plastic Industry had its beginning in India in the mid twenties, LDPE was
produced in the late fifties, and HDPE in the late sixties. Polyethylene has been
the most used plastic films in India, and in the early sixties cast polypropylene has
made entry and was accepted because of its superior properties. Stretching this
film, especially in both directions, produces even superior properties of tensile
strength, flexibility, toughness and such other. The stiffness of BOPP film is three
times that of cast film and eight times that of polyethylene film. Eve n though the
first BOPP process was developed in Germany in 1935, it made its rapid
commercial entry only in the early sixties. The current world consumption is one
million tonnes and the growth rate around 8%. BOPP made its entry into India
only during the eighties, and the present Indian consumption is less than 1% of
the world consumption.
The basic manufacturing plant comprises of compounding and
feeding, extrusion, casting, orientation, gauging, winding, recycle, Corona treating
and profile control systems. The main line plant is imported and auxiliary
equipment and utilities are indigenously obtained. The first Indian BOPP unit to
come up was MM Rubber in Tamilnadu closely followed by Cosmo films in
Maharastra and later by M P United Polypropylene Ltd. At present, seven units
are in operation, though thirtytwo units took license for this activity. The present
installed capacity is 6 million tonnes production. Jindal films have the largest
capacity of 1, 80,000 tpa followed by cosmo Films Ltd with 70,000 tpa. The Indian
market has applications for BOPP in areas relating to overwraps, inner liners,
tapes, pouches/strip packs, print laminations and decorative and release films
and such other. Adhesive tapes, print laminations, cigarette wrapers and biscuit
wrappers together account for more than two thirds of the BOPP market in India
today. It is estimated that the BOPP demand will go up to 17000 tonnes by 1997
reflecting an annual growth rate of 13.5%. Of the seven manufacturers, five have
obtained their plants from Bruckner, Germany, one from Marshall Williams of
USA and another from Mitsubishi of Japan. The Mitsubishi plant is of the Bubble
process, while all other plants are of Tenter process. BOPP is presently
manufactured by over thirty companies around the world. Europe and North
America account for roughly 80% of the total market. Plants of maximum unit
capacities of 16000 tpa with 8 meter width of BOPP at speeds of 300-500 meters
per minute are also in use. Tenter is the most widely used process and some of the
recent improvements are automatic thickness and profile controls, and
computerised process controls. A major difference between a typical International
plant and a typical Indian plant is the difference in size. This results from the
larger international market and the consequent long runs between product
changes. Infrastructural weaknesses, the very high cost of maintenance and
spares, and end user requirements also inhibit usage of large capacity plants in
India.
World BOPP DEMAND
BOPP DEMAND
6,648
6,156
5,700
5,270
4,710

2006 2007 2008 2009 2010

World BOPP Demand and Supply


7,000

6,000

5,000

4,000
BOPP DEMAND

3,000 BOPP SUPPLY


Column1
2,000

1,000

0
2008 2009 2010
A strong sales performance has enabled Cosmo Films to report a strong jump in the
bottom-line for Q3FY2010. The net sales was Rs 2000mn against 1333mn in the
corresponding quarter last year recording a jump of 50%, and net profit grew by 74%
at Rs 124 mn as compared to Rs 70 mn in the corresponding period last year.

Profit & Loss Accounts of Cosmo Films

Profit & Loss Account Of Cosmo


Films Ltd. ………………………….in Rs. Cr……………………………

Particulars 31/03/05 31/03/06 31/03/07 31/03/08 31/03/09 31/03/10


12 month 12 month 12 month 12 month 12 month 12 month

Income
sales Turnover 428.7 459.79 571.16 616.86 693.02 782.86
Excise Duty 37.98 37.8 37.76 36.2 44.02 33.7
Net Sales 390.72 421.99 533.4 580.66 649 749.16
Other Income 2.98 2.58 3.78 10.83 50.27 6.01
Stock Adjustments 3.46 13.82 -9.96 0.14 5.48 2.02
Total Income 397.16 438.39 527.22 591.63 704.75 757.19
Expenditure
Raw Materials 261.21 289.61 342.3 370.8 434.64 505.25
Power & Fuel Cost 25.74 31.43 36.94 38.73 47.72 53.35
Employee Cost 17.71 20.29 24.46 31.51 35.53 38.91
Other Manufacturing
Expenses 3.3 2.52 3.15 3.69 3.47 0.44
Selling and Admin
Expenses 31.84 33.77 45.29 43.66 38.83 0
Miscellaneous Expenses 2.36 2.64 2.98 3.21 3.53 54.22
Preoperative Exp
Capitalised -1.73 -1.65 -1.54 -0.53 -5.04 0
Total Expenses 340.43 378.61 453.58 491.07 558.68 652.17
Operating Profit 53.75 57.2 69.86 89.73 95.8 99.01
PBDIT 56.73 59.78 73.64 100.56 146.07 105.02
Interest 11.53 13.19 17.45 14.88 17.99 15.02
PBDT 45.2 46.59 56.19 85.68 128.08 90
Depreciation 37.03 30.36 25.88 25.31 20.8 28.92
Other Written Off 0.09 0.08 0.08 0.04 0.02 0
Profit Before Tax 8.08 16.15 30.23 60.33 107.26 61.08
Extra-ordinary items 0.73 0.48 0.28 0.53 2.08 0
PBT (Post Extra-ord
Items) 8.81 16.63 30.51 60.86 109.34 61.08
Tax -1.76 3.85 5.68 16.36 21.88 16.48
Reported Net Profit 10.58 12.86 24.82 44.5 42.74 45.82
Total Value Addition 79.21 88.99 111.29 120.28 124.04 146.92
Preference Dividend 0 0 0 0 0 0
Equity Dividend 6.8 7.78 7.78 9.72 9.72 9.72
Corporate Dividend
Tax 0.89 1.09 1.09 1.88 1.65 1.61
Per share data
(annualised)
Shares in issue (lakhs) 194.4 194.4 194.4 194.4 194.4 194.4
Earning Per Share (Rs) 5.44 6.62 12.77 22.89 21.99 23.57
Equity Dividend (%) 35 40 40 50 50 50
Book Value (Rs) 66.05 68.07 76.28 93.2 132.35 150.05

Key Financial Ratio of Cosmo Films

Key Financial Ratios of


Cosmo Films …………………….in Rs. Cr………………………

Particulars 31/03/05 31/03/06 31/03/07 31/03/08 31/03/09 31/03/10


12 month 12 month 12 month 12 month 12 month 12 month

Investment valuation ratios


Face Value 10 10 10 10 10 10
Dividend Per Share 4 4 4 5 5 5
Operating Profit Per Share
(Rs) 27.65 29.43 35.93 46.16 49.28 50.93
Net Operating Profit Per Share
(Rs) 200.99 217.07 274.38 298.7 333.85 385.37
Free Reserves Per Share (Rs) 55.93 58 66.25 83.19 122.35 --
Bonus in Equity Capital 43.65 43.65 43.65 43.65 43.67 43.67
Profitability Ratios
Operating Profit Margin(%) 13.75 13.55 13.09 15.45 14.76 13.21
Profit Before Interest And Tax
Margin(%) 4.3 6.32 8.21 11.03 11.5 9.26
Gross Profit Margin(%) 4.28 11.36 10.6 11.09 11.55 9.35
Cash Profit Margin(%) 9.5 10.17 9.46 10.57 9.04 9.88
Adjusted Cash Margin(%) 12.13 10.05 9.11 10.57 9.04 9.88
Net Profit Margin(%) 2.68 3.02 4.63 7.62 6.55 6.05
Adjusted Net Profit
Margin(%) 1.8 2.88 4.27 7.62 6.55 6.05
Return On Capital
Employed(%) 7.99 9.42 14.32 20.21 14.85 13.89
Return On Net Worth(%) 8.25 9.72 16.74 24.56 16.61 15.7
Adjusted Return on Net
Worth(%) 8.4 9.27 15.43 20.08 14.82 15.7
Return on Assets Excluding
Revaluations 2.13 3.21 6.06 93.19 6.4 150.05
Return on Assets Including
Revaluations 1.98 3.21 6.06 93.19 6.4 150.05
Return on long tern fund(%) 7.99 12.3 23.51 32.57 18.33 13.89
Liquidity And Solvency
Ratios
Current Ratio 1.67 0.74 0.5 0.57 0.74 1.98
Quick Ratio 0.93 1.17 1.53 1.35 1.27 1.47
Debt Equity Ratio 1.51 1.35 1.17 0.83 1.03 0.91
Long Term Debt Equity Ratio 1 0.8 0.32 0.15 0.65 0.91
Debt Coverage Ratios
Interest Cover 1.98 2.55 3.03 5.27 5.58 5.15
Total Debt to Owners Fund 1.55 1.35 1.17 0.83 1.03 0.91
Financial Charges Coverage
Ratio 5.14 4.53 4.12 6.25 5.49 7.07
Financial Charges Coverage
Ratio Post Tax 5 4.28 3.91 5.69 4.53 5.98

Management Efficiency
Ratios
Inventory Turnover Ratio 4.5 5.71 9.57 11.23 16.07 11.52
Debtors Turnover Ratio 6.21 6.28 6.69 6.58 6.95 6.68
Investments Turnover Ratio 8.55 7.85 13.89 11.23 16.07 11.52
Fixed Assets Turnover Ratio 0.97 1.96 2.54 1.33 1.08 1.28
Total Assets Turnover Ratio 1.4 1.36 1.66 1.74 1.24 1.35
Asset Turnover Ratio 1.23 1.02 1.22 1.33 1.08 1.28
Average Raw Material
Holding 34.01 46.88 30.9 43.18 21.17 --
Average Finished Goods Held 21.23 20.24 8.76 8.72 12.1 --
Number of Days In Working
Capital 76.8 79.28 71.64 70.63 58.35 62.1
Profit & Loss Account Ratios
Material Cost Composition 65.85 68.62 64.17 63.85 66.97 67.44
Imported Composition of Raw
Materials Consumed 21.65 23.36 26.06 29.73 33.19 33.33
Selling Distribution Cost
Composition 6.12 6.73 7.07 6.07 4.33 --
Expenses as Composition of
Total Sales 39.55 40.43 52.01 57.28 44.1 44.67
Cash Flow Indicator Ratios
Dividend Payout Ratio Net
Profit 72.7 68.94 35.72 26.07 26.6 24.72
Dividend Payout Ratio Cash
Profit 24.22 20.47 17.45 16.61 17.88 15.15
Earning Retention Ratio 28.59 27.7 61.24 68.12 70.2 75.28
Cash Earning Retention Ratio 83.94 79.24 81.85 81.21 80.72 84.85
AdjustedCash Flow Times 4.05 4.18 3.54 2.43 4.49 3.54

Cash Flow Of Cosmo Films

Cash Flow Of Cosmo


Films Ltd. ……………………….in Rs. Cr…………………………

31/03/05 31/03/06 31/03/07 31/03/08 31/03/09 31/03/10


12 month 12 month 12 month 12 month 12 month 12 month

Net Profit Before Tax 8.82 16.71 30.5 60.87 64.62 62.3
Net Cash From Operating
Activities 29.6 16.68 65.41 52.9 85.9 40.74

Net Cash (used in)/from

Investing Activities -16.1 19.11 -23.16 -24.17 -152.81 -33.22


Net Cash (used in)/from
Financing Activities -22.25 -33.56 -28.52 -40.11 89.08 -12.68
Net (decrease)/increase In
Cash and Cash
Equivalents -8.75 2.23 13.72 -11.38 22.17 -5.16
Opening Cash & Cash
Equivalents 11.33 2.58 4.81 18.53 7.15 29.32
Closing Cash & Cash
Equivalents 2.58 4.81 18.53 7.15 29.32 24.16
Balance Sheet of Cosmo Films

Balance Sheet Of
Cosmo Films Ltd. …………………….in Rs. Cr………………………

31/3/0 31/3/0 31/3/0 31/3/0 31/3/0 31/3/1


Particulars 5 6 7 8 9 0
12 mth 12 mth 12 mth 12 mth 12 mth 12 mth

Sources Of Funds
Total share capital 19.44 19.44 19.44 19.44 19.44 19.44
Equity share capital 19.44 19.44 19.44 19.44 19.44 19.44
Share Application
Money 0 0 0 3.32 3.32 0
Preference Share
Capital 0 0 0 0 0 0
Reserves 108.96 112.89 128.85 161.75 237.84 272.25
Revaluation Reserves 0 0 0 0 0 0
Networth 128.4 132.33 148.29 184.51 260.6 291.69
Secured Loans 182.04 153.78 169.67 149.1 264.74 252.99
Unsecured Loans 11.74 7.97 3.26 1.01 0.01 11.96
Total Debt 193.78 161.75 172.93 150.11 264.75 264.95
Total Liabilities 322.18 294.08 321.22 334.62 525.35 556.64

Application of fund
Gross Block 399.56 412.43 436.64 436.75 598.35 587.51
Less: Accum.
Depreciation 182.81 209.85 234.7 233.26 185.71 213.29
Net Block 216.75 202.58 201.94 203.49 412.64 374.22
Capital Work in
Progress 2.61 8.41 7.51 10.41 0.75 1.92
Investments 46.94 6.77 5.55 6.77 6.77 51.26
Inventories 57.64 74.36 55.96 70.43 58.42 67.93
Sundry Debtors 58.37 76.05 83.35 93.28 93.36 130.96
Cash and Bank Balance 0.43 1.52 3.01 2 1.49 24.16
Total Current Assets 116.44 151.93 142.32 165.71 153.27 223.05
Loans and Advances 20.29 27.92 36.83 54.68 72.99 37.8
Fixed Deposits 2.15 3.28 15.52 5.14 27.83 0
Total CA, Loans &
Advances 138.88 183.13 194.67 225.53 254.09 260.85
Deffered Credit 0 0 0 0 0 0
Current Liabilities 74.39 75.87 73.88 81.8 123.29 118.38
Provisions 8.84 14.33 14.65 29.82 25.61 13.23
Total CL & Provisions 83.23 90.2 88.53 111.62 148.9 131.61
Net Current Assets 55.65 92.93 106.14 113.91 105.19 129.24
Miscellaneous
Expenses 0.23 0.15 0.06 0.02 0 0
Total Assets 322.18 310.84 321.2 334.6 525.35 556.64
Contingent Liabilities 9.1 14.2 8.79 75.54 6.74 28.56
Book Value (Rs) 66.05 68.07 76.28 93.2 132.35 150.05
Comparison Between Cosmo Films and Competitors

Competition

Last Market Sales Net Total


Price Cap. Profit Assets
(Rs. cr.) Turnover
Jain Irrigation 1,252.60 9,547.72 2,735.13 272.85 2,339.01
Supreme Ind 631.55 1,604.48 2,014.88 144.83 607.24
VIP Industries 474.7 1,341.67 636.2 50.1 259.47
Kemrock Indus 603.75 1,011.49 453.02 39.16 881.14
Nilkamal 327.7 489.01 1,031.95 47.24 529.9
Astral Poly Tec 249.8 280.73 290.99 28.03 158.55
Cosmo Films 134.2 260.89 760.49 44.6 556.64
Plastiblends 191.55 124.46 210.29 10.43 103.84
Hitech Plast 89.3 117.66 159.46 13.75 66.69
Tulsi Extrusion 45.9 57.35 110.67 6.29 105.13

Balance Sheet (Rs.cr)

Cosmo Jain Supreme VIP Kemrock


Films Irrigation Ind Industries Indus

Mar
'10 Mar '09 Jun '10 Mar '10 Mar '09
Sources Of Funds
Total Share Capital 19.44 117.23 25.41 28.26 11.01
Equity Share Capital 19.44 72.38 25.41 28.26 11.01
Share Application
Money 0 35.85 0 0 5.51
Preference Share
Capital 0 44.85 0 0 0
Reserves 272.25 830.41 352.79 143.9 246.22
Revaluation 0 0 0 0 0
Reserves
Networth 291.69 983.49 378.2 172.16 262.74
Secured Loans 252.99 1,300.23 190.36 72.31 617.79
Unsecured Loans 11.96 55.28 38.7 15 0.59
Total Debt 264.95 1,355.51 229.06 87.31 618.38
Total Liabilities 556.64 2,339.00 607.26 259.47 881.12

Cosmo Jain Supreme VIP Kemrock


Films Irrigation Ind Industries Indus
Mar
'10 Mar '09 Jun '10 Mar '10 Mar '09
Application Of Funds
Gross Block 587.51 1,314.87 965.87 246.85 327.94
Less: Accum.
Depreciation 213.29 363.75 403.26 166.02 46.48
Net Block 374.22 951.12 562.61 80.83 281.46
Capital Work in
Progress 1.92 99.83 15.98 0.43 155.3
Investments 51.26 390.57 33.62 2.01 2.01
Inventories 67.93 519.52 290.64 80.12 196.51
Sundry Debtors 130.96 781.6 131.44 91.39 262.91
Cash and Bank
Balance 24.16 76.58 18.25 14.2 68.53
Total Current Assets 223.05 1,377.70 440.33 185.71 527.95
Loans and Advances 37.8 357.93 97.74 116.19 14.28
Fixed Deposits 0 11.34 0 2.52 18.35
Total CA, Loans &
Advances 260.85 1,746.97 538.07 304.42 560.58
Deffered Credit 0 0 0 0 0
Current Liabilities 118.38 770.9 481.77 63.21 115.47
Provisions 13.23 78.58 61.27 65.01 2.84
Total CL &
Provisions 131.61 849.48 543.04 128.22 118.31
Net Current Assets 129.24 897.49 -4.97 176.2 442.27
Miscellaneous
Expenses 0 0 0 0 0.1

Total Assets 556.64 2,339.01 607.24 259.47 881.14


Contingent
Liabilities 28.56 335.04 97.59 43.48 41.72
Book Value (Rs) 150.05 124.74 148.86 60.91 233.53

Profit & Loss account (Rs.in cr)

Cosmo Jain Supreme VIP Kemrock


Films Irrigation Ind Industries Indus
Mar
'10 Mar '09 Jun '10 Mar '10 Mar '09
Income
Sales Turnover 782.86 2,505.14 2,005.74 647.93 379.05
Excise Duty 33.7 93.41 0 12.67 15.68
Net Sales 749.16 2,411.73 2,005.74 635.26 363.37
Other Income 6.01 -65.41 16.22 -9.53 9.66
Stock Adjustments 2.02 8.22 9.76 10.99 55.44
Total Income 757.19 2,354.54 2,031.72 636.72 428.47
Expenditure
Raw Materials 505.25 1,314.22 1,345.61 277.12 257.65
Power & Fuel Cost 53.35 67.83 80.25 11.41 6.99
Employee Cost 38.91 80.96 79.57 63.24 21.63
Other Manufacturing
Expenses 0.44 45.49 39.78 3.04 4.73
Selling and Admin
Expenses 0 435.95 0 174.06 33.33
Miscellaneous
Expenses 54.22 17.89 180.94 17.21 2.06
Preoperative Exp
Capitalised 0 0 0 0 0
Total Expenses 652.17 1,962.34 1,726.15 546.08 326.39

Cosmo Jain Supreme VIP Kemrock


Films Irrigation Ind Industries Indus
Mar
'10 Mar '09 Jun '10 Mar '10 Mar '09

Operating Profit 99.01 457.61 289.35 100.17 92.42


PBDIT 105.02 392.2 305.57 90.64 102.08
Interest 15.02 161.59 33.03 11.49 39.65
PBDT 90 230.61 272.54 79.15 62.43
Depreciation 28.92 47.28 52.92 17.28 18.61
Other Written Off 0 0.31 0 0 0.12
Profit Before Tax 61.08 183.02 219.62 61.87 43.7
Extra-ordinary items 0 0.74 0.1 0.06 -0.63
PBT (Post Extra-ord
Items) 61.08 183.76 219.72 61.93 43.07
Tax 16.48 63.59 74.89 11.06 11.25
Reported Net Profit 45.82 120.18 144.83 50.05 32.44
Total Value Addition 146.92 648.11 380.53 268.96 68.73
Preference Dividend 0 3.1 0 0 0
Equity Dividend 9.72 18.83 45.73 14.13 1.74
Corporate Dividend
Tax 1.61 3.73 7.64 2.4 0.3
Per share data (annualised)
Shares in issue
(lakhs) 194.4 723.76 254.05 282.63 110.15
Earning Per Share
(Rs) 23.57 16.18 57.01 17.71 29.45
Equity Dividend (%) 50 25 180 50 15
Book Value (Rs) 150.05 124.74 148.86 60.91 233.53

The stock is available at reasonable valuation, PE multiple of about six to seven and
a good dividend yield of 4%. The short-term trigger for the company and the sector
can come from the fact that in the last few months there has been an increase in the
selling price of BOPP and BOPET without any increase in the prices of raw material,
which means that this quarter, which is June quarter, September quarter these
companies should show higher profits because all the incremental revenues are
going to add to the bottom-line of the company. So at the current price of about Rs
125-127, I do not see too much of downside in the stock. You get a regular dividend
from this company; Rs 5 dividend. So it is something which probably people can buy
and hold for an assured dividend yield of about 4%."