COSMIC CRF LIMITED - sme

Yes. there is a litingation going on but the management is confident about resolving it soon. They have appointed arbitrar and will soon resolve it.

Hindalco tied up Metra SpA of Italy for making Aluminium Rail coaches.

cosmic crf.pdf (2.3 MB)
Latest order update by the company.
CRF(Cold rolled formed) products are not only used in railways but it has various applications like in dredging, road constructions, highways, mountain regions - crash barriers, automobile sector etc.
They are cost effective and hence in demand.

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@ca.ankitarathi :does this company promotor Aditya Vikram Birla belong to actual birla group (ABFRL, Ultratech) as i could not find this person in birla family anywhere.

Thanks in advance for your reply.

No, not the Birla group you are referrring to ( ABFRL, Ultratech).

For a detailed study on Cosmic CRF, you can go through this link posted by an investor.

https://x.com/Rahul_Invest/status/1710522019710967887?t=c2UZhkNe75uBxUzn2n9xoA&s=08

Really feel that this stock is undervalued.

Press Release today - bagged another order.
Eagerly waiting for the results.

cosmic crf press release.pdf (2.5 MB)

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@ca.ankitarathi Can you explain what is the litigation in this company. Why the company went into NCLT? What is the background of AV Birla? We need to understand why is the company undervalued if the entire railway sector is rocking? Happy to discuss on this.

See what I know is-

AV Birla’s father’s company was Cosmic Ferro Alloys - which went to NCLT due to some reasons unknown to us.
AV Birla now has taken only the CRF unit of Cosmic Ferro Alloys from NCLT.

The company actually got listed at a high valuation (according to me) - If we see the last year results and this high valuation will only get justified when the H1 FY24 results will be posted (which as per the management guidance can reach double of the previous year)

Good set, margins maintained. (Due to tax though, but not much impact)


Relevant notes. I was not aware of note 8.


LT Borrowings reduction followed as per RHP.


OCF negative

The long term advance of 9 cr is questionable or I am not aware of.

Overall Good set of numbers.

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As for the Notes given-
The company is planning to acquire a NCLT company having similar line of business.
This will lead to expansion of production capacity - beneficial for the company.

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Can you please share the financial impact this litigation could have on the company ? If you are aware about it.

Its around 10 crores.

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Finally the news is here which we were waiting for. The NCLT order for the takeover.
This will enhance the capacity as well as the client base of the company.

cosmic order.pdf (4.3 MB)

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Bulk deal - Cosmi CRF (Credits : Bulk deals daily log by Devesh Gaur)

Entering Entity: YUGA STOCKS AND COMMODITIES PRIVATE LIMITED

Entry Price: 371

Entry Quantity: 20,000 shares

This is a railways related business, so this might be late to the party, but does look statistically cheap at about 2X sales multiple. Definitely worth a look

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Yuga appears to be trading entity…lots of trades in their Screener page…so would not give any credence to this.

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In Nov 23, Cosmic got some small quantities of orders through tender form in one railway zone.
Of course it’s in very small quantities but the CosmicCRF is actively participating in local tenders also.

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This acquisition seems to be a good move. Huge wagon orders lead to good earning visibility for cosmic and this acquisition may add more top line and bottom line.



With thanks

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Investor Ashish Kacholiya Sir took the entry through Dar’s business finance private Ltd

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https://www.bseindia.com/xml-data/corpfiling/AttachLive/2950b73f-bef3-44f7-87fe-f32e74d68ac4.pdf

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