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Cosmo Films soars 10% on bonus issue plan

Shares of Cosmo Films soared 10 per cent to Rs 2,044.75 on the BSE on Wednesday’s intra-day commerce after the company introduced board meet on Monday, May 9, 2022 to mull issuance of bonus shares. The board will even contemplate the audited monetary outcomes for the quarter and year ended March 31, 2022.

In the previous one year, the stock of packaging company has zoomed 190 per cent, as in comparison with 18 per cent rise within the S&P BSE Sensex. Earlier, it had hit a document excessive of Rs 2,140 on April 11, 2022. At 10:29 AM; it was up 9 per cent at Rs 2,015, in opposition to 0.51 per cent decline within the benchmark index.

Cosmo Films is a worldwide chief in movies for packaging, labelling, lamination and artificial paper and an rising participant in specialty chemical compounds, polymers, and pet care.

In March, the company had introduced enlargement by organising CPP movie manufacturing line at Aurangabad with annual rated capability of 25,000 metric ton (MT). The CPP line would require funding of about Rs 140 crore, funded via inside accruals and money owed and is predicted to start industrial manufacturing in 2 years.

“With current CPP capacity running close to 100 per cent utilization, the company planned capacity expansion with the world’s largest width line and lowest cost of production. Other growth plans i.e. Specialized BOPET line, BOPP line, focus towards growing specialty sales, expansion with Cosmo Specialty Chemicals and Zigly are progressing well in line with the plan,” the company stated.

In October-December quarter (Q3FY22), Cosmo Films reported 65 per cent year on year (YoY) jumped revenue after tax at Rs 104 crore on again of sturdy operational efficiency. Meanwhile, EBITDA margin expanded by 251 bps to 17.9 per cent from 15.38 per cent in Q3FY21 and internet income grew 35 per cent YoY at Rs 771 crore from Rs 572 crore in a year in the past quarter.

During the quarter, the company has acquired sanction underneath Production linked Incentive (PLI) for manufacturing of speciality movies to be used in digital merchandise. The incentive underneath the scheme shall be for 5 years on 100 per cent manufacturing of the brand new plant.

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