COSMIC CRF LIMITED - sme

Stocks_To_Win · January 14, 2025, 2:19am

Chronological timeline of Cosmic CRF’s involvement:

April 20, 2024
◆Form G published inviting EOIs
◆Public announcement made in multiple newspapers
May 6, 2024
●Cosmic submitted EOI
◆Deposited initial EMD of ₹25 lakhs
◆Submitted undertaking affirming Section 29A eligibility
May 10, 2024
Included in Provisional List of PRAs
Documents under review status
May 20, 2024
Included in Final List of PRAs RFRP issued by RP
June 21, 2024
Submitted Section 29A Affidavit
June 28, 2024
◆Submitted Resolution Plan ◆Deposited additional EMD of ₹1.50 crores
August 22, 2024
◆Participated in Swiss Challenge ◆Mechanism Completed three rounds
August 27, 2024
◆Energy Watchdog letter alleging ineligibility received
August 31, 2024
RP shared Energy Watchdog’s letter with Cosmic
September 2, 2024
Cosmic responded denying allegations Provided additional information to AHSK
September 11 & 17, 2024
Provided further information to AHSK
September 20, 2024
AHSK report declaring ineligibility under Section 29A(c)
September 27, 2024
Show Cause Notice issued to Cosmic
Limited to Section 29A(c) violations
September 30, 2024
Cosmic submitted reply to Show Cause Notice Denied all allegations
October 18, 2024
Two reports submitted:
◆AHSK final report
◆Priyanka Sharma & Associates report
Both declaring Cosmic ineligible under multiple sections
October 19, 2024
CoC declared Cosmic ineligible
EMD forfeiture decided
November 4, 2024
RP informed Cosmic of ineligibility decision
November 5, 2024
Cosmic indicated intention to seek legal protection
January 9, 2025 (Current Order Date)
Court partially allowed Cosmic’s application
Directed CoC to:
◆Provide fair hearing opportunity
◆Consider Cosmic’s response to reports
◆Review eligibility afresh
With thanks
Disc: Had holdings

Dev2 · January 15, 2025, 5:07pm

Dev2 · January 15, 2025, 5:10pm

ap_21 · January 15, 2025, 7:32pm

Response from Raft Cosmic EV

Recently, a former associate has made baseless and malicious allegations against our company on social media platforms, including LinkedIn. These claims, which include accusations of forged signatures and unauthorized share transfers, are completely false and without merit.

We want to address these allegations directly and transparently:

We have numerous questions that would uncover the truth, but for now, we urge the accuser to respond to just these three:

If you genuinely believe your signature was forged, why haven’t you approached the courts to seek justice?
If you suspect fraudulent activity, why haven’t you filed a formal complaint with the Registrar of Companies (ROC) or other relevant authorities?
Why are you directing your grievances towards Raft Cosmic EV, which has no role in this matter, instead of addressing your concerns to the individual who purchased your shares?

It is important to highlight the following:
The accuser was removed from our board for reasons that are publicly available and legally documented.
Public records also reveal multiple court summons against this individual for financial irregularities, including non-payment to creditors and check-bouncing cases.

We find it perplexing that someone who claims to uphold the truth has ignored these summons, failed to appear in court, and instead resorted to spreading false claims on social media about our Chairman, Aditya Vikram Birla.

We stand for Truth and Integrity
At Raft Cosmic EV, we uphold the highest standards of transparency, integrity, and professionalism. While we remain focused on building a sustainable future for mobility, we will not tolerate attempts to tarnish our reputation with baseless allegations.

If the accuser has genuine concerns, we strongly urge them to address these with the relevant parties or authorities, rather than baselessly posting on social media and misdirecting the masses.

False narratives create unnecessary noise and confusion. We stand united in our commitment to truth and fairness and thank our stakeholders, partners, and the community for their unwavering support.

Let’s not allow rumors to derail the good work being done for the future of electric mobility and affect the great start up momentum that India is thriving on!!

Stocks_To_Win · January 16, 2025, 3:58pm

Yes it seems like a “intentional wrong propaganda” by founder of RAFT Motors.

Why he is not approaching the court for justice.
Why he is not going to relevant authorities.
Why he is not making any civil complaint

So many doubt are coming on founder of Raft Motors.

Cosmic birla group planning to expand their wings but these persons are trying to drag cosmic groups reputation.

With thanks
Be and Make

charan_datt · March 27, 2025, 12:40pm

Has anyone joined Arihant capital Bharat connect conference of Cosmic CRF?
If so could you please list down the updates or main points over here. Would be very helpful.

Manik_Gupta · April 25, 2025, 4:27pm

As per NCLT order, Cosmic CRF competitor Myotic trading Pvt Ltd has exited from participation. It seems Cosmic CRF will acquire Amzen Pvt Ltd without fail.

Disc: has holdings.

Stocks_To_Win · May 23, 2025, 6:55pm

Excellent FY25 numbers by CosmicCRF
Sales up by 58% YoY
Net Profit up by 142% with exceptional item or up by 95.4% without exceptional item YoY

In consolidated figures, N.S.Engg numbers were included and this new acquisition did wonderful and improved the ratios.

In my view,
Cosmic CRF is going to be a massive disrupter for existing wagon manufacturers.
As the management is planning for complete component manufacturing under one roof to become a integrated wagon manufacturer and this integration not only sets them at new high but also it can have better margins when compared to other existing wagon manufacturers.
Very soon Cosmic CRF going to become a Integrated wagon manufacturer. Final verdict of NCLT to acquire Amzen is pending and likely to come in the upcoming weeks.
This event also a game changer event for the company as the books size and technical eligibilities to bid for wagon contracts of Amzen are going to benefit the cosmic crf in an exponential way.

Advance wishes
With thanks
Be and Make
Disc: Had Holdings

r8b8 · May 23, 2025, 10:11pm

Guidance was to do 500 cr topline and they did 400 cr. Fell short by 100 cr.

Stocks_To_Win · May 24, 2025, 2:06am

Dear r8b8 - Yes, you are right. H2FY25 their growth is slightly moderated. Let’s wait for the management commentary about this HY.
If we observe the data of YoY, they did very well.
In my view this is just a beginning for their exponential growth as it is a “small fish in big pond”
Their goal to become an integrated wagon manufacturer is surely a game changer.
With thanks
Be and make

Stocks_To_Win · May 28, 2025, 4:41pm

Cosmic CRF FY25 Concall Highlights:

FY 2026 & Future Outlook
Consolidated Revenue:
Projects FY26 revenue of 650–700cr from existing operations, assuming current steel prices (₹80,000/MT average, including stainless steel contributions)

Cosmic CRF (Standalone): Expected to contribute ~400–450cr, based on 38,000–45,000 MT
NS Engineering: Projected to contribute ~150–200cr, scaling to 70–85% capacity ( 20,000–25,000 MT)
Cosmic Springs and Engineers: 50–100 cr at 25% utilization in FY26, scaling to 85% by FY27
Forging Unit New unit to add 150cr in revenue by FY27, with limited contribution in FY26 (~50cr) due to setup phase (45cr Capex)

Consolidated PAT Margin:
Expected 6–7% for Cosmic CRF and NS Engineering
Expected ~15% for Cosmic Springs and Engineers
due to high-margin spring and forging businesses

If Amzen acquisition is completed (10-15% PAT), it could add 1,500–1,600cr at full capacity, potentially pushing total revenue to 2,000–3,000cr by FY27, with FY26 as a setup year {6–8 months for refurbishment and Dedicated Freight Corridor (DFCC) setup}**

Backward integration (springs, forging, potential liquid metal asset) expected to reduce raw material costs by 3.5–4%, enhancing profitability

Exceptional costs (e.g., 3.25cr in legal and deferred tax expenses in FY25) expected to normalize, supporting higher PAT margins

Management committed to more frequent updates to counter misinformation and enhance stakeholder trust. Addressed perceptions of overexposure, emphasizing focus on business-building over publicity

Current order book and pipeline:
Current : 550cr;.50% execution expected in the next two quarters (Q1–Q2 FY26)
Railways (52%):.~286cr, primarily stainless steel-based orders, less sensitive to price fluctuations
Infrastructure (48%): ~264cr, based on mild steel at ₹72,000–74,000/MT

Execution Capacity: At 75–85% utilization of 110,000 metric tons total capacity (Cosmic CRF: 45,000 MT, NS Engineering: 20,000–25,000 MT, Cosmic Springs: 14,400 spring sets), projecting 82,000 MT output

Cosmic CRF Standalone upgraded Singur plant with a 6,000 sq. ft. shed, producing 20–22 wagon bodies/day

Pipeline:
Amzen Transportation Industries:
Lead bidder, with resolution plan submitted on May 27, 2025, post concall. Investment: 265cr (including DFCC setup). 6–8 months for setup post-NCLT approval, with limited FY26 contribution

Re-iterated confidence in Amzen acquisition (99.9%), with fallback plan of 650–700cr top line from existing operations if unsuccessful

Liquid Metal Asset:
Planned acquisition (<100cr) to secure 1–2 lakh tons/year of specialized steel (e.g., IS2062 E450, 3.2–3.3 mm). Aims to reduce LC costs and supply chain risks

Railway Tenders:
Anticipated tenders for 25,000–50,000 wagons by Sept–Dec’25, driven by a 45,000–50,000 wagon backlog. Targeting 100cr in new railway orders and 250cr in infra orders to maintain a 550–600cr order book

Others :
Steel Price Volatility: FY25 revenue shortfall (402 cr vs. 500cr guidance) due to a 22–23% drop in mild steel prices and a shift to 70% mild steel mix from 82% stainless steel
Wheelset Shortages: Railway wagon production slowed (950–970 wagons/month vs. 3,400–3,600 previously), impacting order offtake

CapEx Plan: 20cr for springs plant, 45cr for forging unit, 265cr for Amazon (including DFCC setup), totaling 330cr

Debt: Current debt of 70cr (65cr working capital, 5cr term loan). Future debt of 200cr (150cr term loan, 100 cr working capital) planned over 1.5–2 years. Future debt (10–13% of projected revenue) aligns with a 50:50 debt-equity ratio

Equity Raises: Raised 172.5cr via preferential equity in FY25 (84cr for NS Engineering). Additional 38.5 cr in promoter warrants to be triggered post-Amzen acquisition. No Dilution Commitment: Promoter pledged no further equity dilution until March 2028

Cash Flow Challenges: Negative operating cash flow in FY25 due to NS Engineering investments and delayed receivables. Expected to normalize by Q1 FY26

R&D conducted at the component level, collaborating with steel majors (e.g., Jindal’s mild steel-stainless steel blend trials)

Expects a rebound in stainless steel demand with box wagon tenders (post-Sept’25), as they are critical for coal, manganese, and iron ore transport, potentially raising average selling prices.

Forwarded message:
With thanks

Researcher · July 19, 2025, 11:41am

If the promoter is so knowledgeable about the railway business, why did the prior family business go into NCLT? How will simply having a new entity change the merit of the business while the promoter is the same as in the prior business?
Does anyone have prior financials of CRF Unit before it was transferred to Cosmic CRF Ltd? 2 years is too limited to guage the performance of a company that was formed from unit that was in NCLT. So, prior financials would help.
Thanks.

Stocks_To_Win · July 24, 2025, 1:23am

Dear Researcher - Part of the answer is in your question. Current promoter Mr.Aditya vikram birla took this company through NCLT. As we all know “Good management has an extraordinary way of making money for you, and bad management, no matter how favorable the environment, has a way of missing opportunities.”

What Mr.Aditya Vikram Birla/CMD/CosmicCRF achieved so far…
Dec 2021 Company incorporated as Cosmic CRF Limited
Jan 2022 Acquired business via transfer from Cosmic Ferro Alloys Ltd
FY22 Installed Capacity: 12,000 MTPA; Achieved ISO 9001:2015 Certification
FY23 Capacity increased to 18,000 MTPA
FY24 Further increased to 45,000 MTPA; Listed on BSE SME in June 2023
2024 Acquired NS Engineering Projects Pvt. Ltd. (60,000 MTPA capacity)
2024 Received RDSO approval for key wagon components
2025 Acquired Cosmic Springs for manufacturing helical and Casnub springs
2025 Procurement of land for forged components unit (₹45 Cr capex).

Cosmic CRF – Way Forward (2025–2030):
Vision to evolve into a fully integrated railway wagon manufacturer.
Forged Components Unit: Production to begin by Feb 2026
Springs Manufacturing Unit: Acquired helical & Casnub springs plant (₹25 Cr)
Land Acquired for new factories with advanced capacity and technology
Order book: ₹550 Cr as on March 31, 2025 (~1.8x of FY25 revenue)
Amzen Transportation: Resolution plan submission in progress (by May 27, 2025)
Financial Management Outlook: Negative FCF & OCF in FY25 due to investments, Positive free cash flows expected from FY26 onward.

My observations:

Management is the key growth driver for any company. Previous managements may did some mistakes doesn’t mean that the company or their business is not good.
AVB transformed this small CRF component business in to an integrated wagon manufacturer.
They are planning to acquire Amzen transportation through NCLT which is going to be a game changer event for the company.
They had very ambitious plans but future will tell whether they will achieve or not. Hope for the best.

With thanks
Be and Make

Disc: Had holdings

Researcher · July 25, 2025, 5:22am

Agreed. The current achievements and future plans do look promising. My reason for wanting to know more about the company is because of the concerns below:
For the 2nd preferential allotment, initially, there were 40 potential allottees from public category. Eventually, only 10 allottees subscribed to preferential issue of which 2 were Ashish Kacholia and his company.
Further, there is a negative operating cash flow despite growing revenue. Negative cash flow from operations are not because of investments. Investment outflows are captured under cash flow from investments. I understand that there are working capital buildups. But if they are resulting in negative cash flow from operations, then they need to be understood. Most orders have a timeline of completion, say, 6 months, 9 months, etc. If order completions are done in a timely manner, I am wondering why the receivables are building up.

Stocks_To_Win · July 27, 2025, 6:46pm

Yes, the management extensively discussed trade receivables during the conference call held on May 27, 2025.
Aditya Vikram Birla, the Chairman and Managing Director, specifically addressed the “debtor book” and “debtor position” when explaining the negative operating cash flow (OCF). He stated:
• The OCF took a hit because they are “buying raw material for NS, for springs also, because they do not have the money other than what Cosmic CRF has to lend them or probably give them advances for”.
• He elaborated that “if you reduce from the debtor book, the debtor position, the NS part, as well as the Cosmic Springs part and the Engineers part, then you’ll see we are up here at INR69 to INR70 odd crores on debtors”. He noted that this “should have been at INR50 crores, but got stretched to INR70 crores for the simple reason being that INR20 crores is the leverage that we have to use”.
• He explained the reason for this stretch: “there are a couple of wagon builders who have given us an assurity of making payments after a sale to them for 30 days, but they’ve not made payments for almost four to five months”. This is a “disclosed event” in their books of accounts. The wagon builders are also stuck because their “wagons are also not flowing out as per what they had planned because of the wheel sets”, an issue that “has plagued everybody to a certain extent over the last quarter”.
• He anticipates that this “one-time issue” will get resolved “in the next one, 1.5 months at best” and expects to “see a new moon, a new sun by the end of next month”.

Disc: Holding hence my views may be biased

Nabendu · July 28, 2025, 2:58am

Gentle reminder of Cosmic CRF seeing all the positives want to remind the forum members

Management is the biggest key in SME and Microcaps . Business can be made by all means by an SME and Microcap but remember to get a check done on the Promoter & Management integrity is utmost important. You may make short term gains but in the longer run you can erode capital

Not daily we hear competitors openly posting about forgery and fraud and writing letter to the PM. Remember businessman are not only answerable or deliverable to shareholders but also to their business partners and all the stakeholders as a whole .

Also lofty claims and projections are good to hear but something is off regarding the founder in my promoter judgement. Tread carefully as many times we tend to ignore the promoter integrity which is the number 1 thing to judge in any microcap / SME

Neither Invested / Nor tracking

Bonus Clip

Watch this interview would be loved by investor community for tall claims and insights but in my view this was the most arrogant / a college kid like interview which turned me off this company when I was researching in Nov / Dec 2024 which I have watched in a long time.

Maybe I am not as smart as others investors on this forums in judging promoters and all will have their individual views . Again to all the smart investors opposing my views , you live in a free country so its just my personal views and happy if the promoters earn you generational wealth