Cosmo First reports significant growth in Q2 financial results, but areas for improvement remain

Cosmo First, a smallcap packaging company, has recently announced its financial results for the quarter ending September 2024. The company has shown a positive performance in the second quarter of the fiscal year 2024-25, with a significant improvement in its overall score from 5 to 17 in the last three months.

According to the financial report, Cosmo First has seen a growth of 414.7% in its Profit Before Tax (PBT) less Other Income, which stands at Rs 37.46 crore. This is a significant increase compared to the average PBT of the previous four quarters, which was Rs 7.28 crore. The company's Profit After Tax (PAT) has also shown a positive trend, with a growth of 130.9% over the average PAT of the previous four quarters, which was Rs 19.81 crore.

Cosmo First's operating profit to interest ratio has also improved, with the highest ratio of 3.45 times in the last five quarters. This indicates the company's ability to manage its interest payments effectively. The company's net sales have also shown a positive trend, with the highest sales of Rs 758.92 crore in the last five quarters.

The company's operating profit (PBDIT) has also seen a significant increase, with the highest amount of Rs 87.03 crore in the last five quarters. This indicates a positive trend in the company's operating profit. The operating profit margin has also improved, with the highest margin of 11.47% in the last five quarters, indicating an increase in the company's efficiency.

Cosmo First's earnings per share (EPS) have also shown a positive trend, with the highest EPS of Rs 17.43 in the last five quarters. This indicates an increase in the company's profitability and its ability to generate higher earnings for its shareholders.

However, there are some areas that need improvement for Cosmo First. The company's operating cash flow has been falling each year in the last three years, with the lowest amount of Rs 245.22 crore in the last fiscal year. This indicates a decline in the company's cash revenues from its business operations. Additionally, the company's non-operating income is 34.50% of its Profit Before Tax (PBT), which is a high percentage and may not be a sustainable business model.

Overall, Cosmo First has shown a positive financial performance in the second quarter of the fiscal year 2024-25. The company's profitability and efficiency have improved, but there are some areas that need attention for sustained growth in the future. Based on these financial results, MarketsMOJO has given a 'Hold' call for Cosmo First's stock.