HIDDENGEM & POTENTIAL MULTIBAGGER

COSCO LIMITED
(BSE Code-COSCO) (BSE Code-530545)

(Face Value – 10.00, Book Value – 111.88, 52w High – 238, 52w Low – 145)
If you or your siblings ever played Cricket in your childhood, then
you must be familiar with a name of Cricket Ball manufacturer –

“COSCO”

REMEMBER THIS???

Not only just in this Cricket Balls, but also for the Health and Fitness Equipment and
other Sports Material manufacturing, Cosco is the leader in this space. It has established a
very well known name in sports sector.

Company Background: Founded in 1980, Cosco (India) Limited (“Cosco” or

“Company”) is a leading and the only listed Sports goods manufacturing company in
India. The Company provides a large variety of sports goods, health and fitness
equipment of international quality and brands, and exports to over 35 countries. The
Company is a member of The Sports Good Foundation of India, The Sports Goods Export
Promotion Council and The World Federation of the Sporting Goods Industry, has the
Golden Status Export House and is certified with ISO 9001:2000, ISO 18001:1999 and
ISO 14001:1996.
The Company operates primarily through two business segments: (i) Own Manufactured
Goods, which includes sports balls and sports ball bladders. The Company’s principal
products include (a) lawn tennis balls and moulded sports balls, (b) inflatable sports balls
and synthetic sports balls, and (c) sports balls butyl/latex bladders. (ii) Traded Goods,
which includes (a) fitness equipment such as cross elliptical trainer, manual and
motorized treadmills, rowers, steppers, exercise bike, sewing machine, strength
equipment and recently launched cardio sports watch, and (b) Sports bicycles and other
sports goods.

The Company is the only ITF approved tennis ball manufacturer in India and
manufactures FIFA approved footballs. Including Indian and International sales, the
Company has products for Badminton, Basketball, Cricket, Handball, Water Polo, Net
Ball, Shooting Ball, Throw Ball, Rugby, Street Scooter, Roller Skates, Soccer, Squash,
Table Tennis, Tennis, Volley Ball, Swimming. It also provides several Fitness Equipment
and Accessories.
The Company’s manufacturing facility (in Gurgaon, India) is spread across 7 acres with a
built up area of over 200,000 sq ft., and is well equipped with machinery and
infrastructure. The Company has a strong marketing division with 6 sales offices (Delhi,
Gurgaon, Jalandhar, Kolkata, Mumbai and Noida) and a distribution network of over.
800 authorized dealers across India. As such, Cosco is the most organized Indian
company in Sports Goods industry. COSCO has established a strong legacy over 4
decades with innumerable achievements, strong associations, International Approvals
and National & State Level affiliations.

Due to globalization, Sports are becoming very famous on International levels. Size of
Contribution of Sports to GDP is burgeoning day by day. Moreover due to Covid-19
effect are becoming more and more health conscious and now sports are becoming a part
of daily life in most of the people’s life. People started using more products which help in
Exercises and Cardio etc and this Company has a well established name in this segment.
Products: Company is engaged in manufacturing of own branded products. Besides this
company also engaged in manufacturing of different products for global giants
and exports to 35 countries worldwide. Company have well established Brands in
pocket which needs no introduction in this market. It also represent many International
Brands in India through our strong network of over 800+ Dealers. COSCO has established
a strong legacy over 4 decades with innumerable achievements, strong associations,
International Approvals and National & State Level affiliations.

COSCO (INDIA) LIMITED is the Exclusive Distributor for ADIDAS

Range of Fitness Accessories in India.

COSCO is the Exclusive Distributor for REEBOK Range of CARDIO

EQUIPMENTS in India.

Besides the Brands, here below is the information about the classification of its products
manufacturer by Company:
Company have set very prime quality parameters in its Production. This is why big global
giants have also tie up for manufacturing of their products through Cosco Limited.

Shareholding Pattern: Shareholding pattern of the company is very strong as Promoters

holds 74.98% of the total shares. Promoters are very strong in this field and have
vast experience in this field. Not a single share is pledged in any kind by promoters and
others. Besides Promoters there are also some Big Investors who holds more than 3.60%
stake in company. Rest of the equity is with the retail and other holders. Below
graphical presentation of the shareholding pattern clearly explains the proportion of
holding by each category:
 Shareholding Pattern

21.42%

3.60%

74.98%

Promoters Other Majors Others

Financial Performance: Company is doing really good in terms of Business Operations.

Company is growing at very good pace, and it is reflected in its financial reports. People
inclining towards health consciousness now a days. This leads this company to be major
beneficiary of this tendency as it is engaged in manufacturing of health care equipments
and sports material. In today’s era, even Governments are very concentrative on sports
that is why many Governments are giving direct orders to Manufacturer’s of this material
and Cosco is all set to reap the biggest benefit out of it.

With leading orders from Governments and other societies and higher distribution
channel sales, this counter is all set to break its previous records of highest sales and
profits in coming quarters. With rising demand, there is deep scope of huge expansion as
it is currently trading on Market Capitalization of just 100 Crore which is truly cheap
against its business prospects and scope of expansion.
Key Positives(Abstract): As already mentioned Cosco is doing very great and expected
to perform more efficaciously in coming quarters. There are abstract of some positive
points which are very favourable Investment Rationale. Some of the key positive points
are mentioned here below:

1) Company is engaged in manufacturing of sports products and health and

fitness products, which are in high demand.
2) Pandemic due to Covid-19 which whole world has faced and still facing, has
taught people that health is the most precious gift for mankind. People are now
inclined towards maintaining good health with exercise and sports. So,
demand of these products are inching to all time highs in India and this is
surely going to be most beneficial for company which is majorly engaged in
the production of these products, COSCO Limited.
3) Company has very well established own brands and also manufacture’s for
other worldwide giants in this sector, and export products to 35 countries
worldwide.
4) Cosco, with Market Cap of just 100 Crore whereas Market Cap of Adidas is
375000 Crore, Nike where Market Cap is 1755000 Crore, don’t you think our
Indian largest manufacturer is trading at such dirt-cheap valuations which can
not be sustained in coming quarters. This stock has huge potential to rise at
least 5 to 10 times in medium to long term.
5) Company has total Market Capitalization of 100 Crore only and having such a
well known brands in its pocket. This company has huge potential to scale up
business and become a giant in coming years.
6) Company has it manufacturing plant in Gurgaon at prime area of the city,
where real estate prices are touching sky. Company have its manufacturing
plant in 7 Acre Land. Cost of 1 Acre land is expected to be Rs.45/- Crore on a
very conservative note. So, for 7 Acres it becomes Rs.315/- Crore, which
alone is more than 3 times of the Market Capitalization of the Company.
You can imagine how undervalued this gem is.
7) Besides this Company has 6 Branch Offices in different Prime Cities which
also adds to the property valuations of the company.
8) Promoters holding 74.98% stake in Company, which shows their confidence
in the future prospects of this company.
9) Book Value of the Company is 111+ and Stock is trading at 2.10 times of its
book value which is cheap for this company. As it has no Direct peer listed in
the Space, but still it is very cheap for a company having such huge potential.
10) Company have earned 42 crore (appx) Free Reserves for its shareholders, and
its market cap is near to 100 crore. Market Cap / Sales is just 0.64
11) Company have both short term as well as long term debt on books which is
easily manageable against its rich assets.
12) It has a Highly Skilled team of 650+ personnel managing Production, Sales and
Service. They also represent many International Brands in India through their
strong network of over 800+ Dealers.
13) It is the Exclusive Distributor for ADIDAS Range of Fitness Accessories &
is the Exclusive Distributor for REEBOK Range of CARDIO
EQUIPMENTS in India. It is also exclusive distributor of STIGA products in
India
14) Enterprise Value of this company is 147.29cr which maybe due to very old
accounting but the king of Brand value it enjoys Enterprise value likely to
be again revised
15) Technically Stock is in Uptrend and trading well above its 50, 100, 200 DMA
which is very positive indicator. Other Indicators are also positively placed
in this counter.
16) On Weekly Chart it is making big breakout of strong resistance which is very
positive sign. Also, it is making Rounding Bottom Pattern which will
complete at 440-450 level very quickly, and soon it is to complete the pattern.
Above that Sky is the limit for this counter.
Conclusion and View: With strong demand for Health and Fitness Products in India, we
expect company to perform exceptionally well in coming quarters and years. Company
already holds very well-established brands which needs no introduction in market.
Besides this Company enjoys monopoly in this sector at large level production. Company
has very strong management, which is leaving no stone unturned to improve the numbers
of company and to deliver the better results every quarter. Fundamentals of the company
are really great and favourable investment option.

Cosco with strong Brand, earning visibility, and sound fundamentals, has huge potential
to deliver massive returns on investment in coming quarters. So, at CMP it is
very lucrative as it has big business opportunities. On the upside one can expect
multibagger returns in times to come.