Cosmo First Ltd

Cosmo First Ltd demonstrates inconsistent financial performance and growth. Compounded sales growth shows positive trends over 10 years (6%) and 5 years (6%), but declines to -2% over the past 3 years. However, TTM sales growth has recovered to 12%. Quarterly sales have fluctuated, with YOY Sales Growth % varying significantly. OPM % has also been volatile, ranging from 5% to 18% in the recent quarters. Profit growth shows a concerning trend with a 3-year compounded decline of -30%, though TTM compounded profit growth is very strong at 123%.

Capital efficiency and returns for Cosmo First Ltd present a mixed view. The ROCE % has fluctuated significantly over the years, starting at 7% in Mar 2014, peaking at 31% in Mar 2022, and then declining to 7% in Mar 2024, before recovering to 10% in Mar 2025. The ROE % also displays variability, averaging 17% over 10 years but dropping to 9% in the last year. The cash conversion cycle shows a decline from 60 days in Mar 2014 to 17 days in Mar 2025, indicating improved working capital management.

The financial health and prudence of Cosmo First Ltd indicate potential concerns. Borrowings have generally increased over the years, rising from ₹ 587 Cr in Mar 2014 to ₹ 1,438 Cr in Mar 2025. This increase in debt is also reflected in the rising Debt/Equity ratio. Interest coverage, calculated as Operating Profit / Interest, has shown fluctuations, impacting the ability to cover interest obligations comfortably. The dividend payout has been reasonably consistent.

The shareholding pattern of Cosmo First Ltd reveals some shifts. Promoter holding has decreased from 45.04% in March 2024 to 40.98% in March 2025. Institutional holdings show a mixed trend, with FII decreasing from 3.19% to 3.12% and DII decreasing from 0.03% to 0.09% during the same period. Public holding has increased from 50.45% to 54.16%. These changes in ownership structure could indicate shifts in investor sentiment or strategic decisions by major shareholders.

Segment performance volatility is observed in Cosmo First Ltd's quarterly results. The YOY Sales Growth % has fluctuated significantly, ranging from -21.96% to 16.30% in recent quarters. Similarly, the YOY Profit Growth % has shown considerable variability, from -85% to 160%. These fluctuations indicate inconsistency in segment performance.

Cosmo First Ltd is exposed to foreign exchange and interest rate risks. The company's operations involve international transactions, making it susceptible to exchange rate fluctuations. Additionally, the increasing borrowings expose the company to interest rate volatility.