This small-cap packaging stock is trending today!

With the Indian stock market hitting an all-time high, this small-cap stock surged 6%.

On November 29, the market is trading in green scaling new lifetime highs. At noon, the S&P BSE Sensex is trading at 62771, up 0.43%, while NIFTY50 is trading at 18,645.55, up 0.45%. About sectoral performance, FMCG and Consumer Durables are the top gainers, while Capital Goods and Oil & Gas are among the top losers. Talking about stock-specific action, Cosmo First Ltd is among the top gainers in BSE group ‘A’.

The shares of Cosmo First surged 6% and are trading at Rs 797.15. The stock opened at Rs 760 and made an intraday high and low of Rs 814.2 and Rs 757.95, respectively. However, over the last six months, the stock has fallen sharply by around 35% from Rs 1230 to Rs 800.

Yesterday, the company disclosed its plan to schedule a board of members meeting on December 1 to discuss the proposal for the buyback of its equity shares. This news infused positive sentiments around the stock.

Cosmo First Ltd is a global leader in speciality films for packaging, lamination and labelling applications. Its film offerings include biaxially oriented polypropylene (BOPP) films, cast polypropylene (CPP) films, and polyethylene terephthalate (BOPET) films. They are the largest BOPP films exporter from India and the world’s largest manufacturer of thermal lamination films.

FY22 was the biggest year for the company in terms of both revenue generated and net profit earned. The FY22 revenue and net profit stood at Rs 3038 crore and Rs 397 crore, respectively.

The company has a market capitalisation of Rs 2183 crore and is trading at a PE multiple of 6.25x. The scrip has a 52-week high and low of Rs 1428 and Rs 658, respectively.

About the shareholding pattern, 44.25% of the stake is owned by the promoters, 28.32% by the non-institutional investors, 5.83% by FIIs, and the rest 0.94% by DIIs.