Cosmo Ferrites Ltd Stock Research

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Cosmo Ferrites Ltd Detail

Cosmo Ferrites Ltd is in portfolio of Subramanian P. He is one of the top investors in India. It is a Electrical Component company typically branded as Electrical category. It is part of the Cosmo Group of Companies.

It is second largest company of the group after Cosmo films (as per Company website). It manufactures and exports Mn-Zn soft ferrites from India. Company product serves all major applications like Solar Inverters, Sensors, VLT Drives, Energy Meter, Lighting, SMPS, Battery Charger, Induction welding/heating application.

The manufacturing unit is based in Himachal Pradesh. As per company website it has leading position in India. It has production capability of 3600MT making it leading producer in India.

It has global presence with distribution network present in continent like North America (US), South America and Europe as well. It does not have any presence in Australia and Africa.

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Now lets look at performance of this company over the years.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Cosmo Ferrites Ltd Stock Performance

Cosmo Ferrites Stock Performance 2018
Cosmo Ferrites Stock Performance 2018

The Company was trading at level of approx 16 in year 2002. As of now it is trading at similar levels of below 20. So if you consider end to end return then there is virtually no return. It has not made any money for Investors.

The company trades between 20 and 10 levels. It spikes above 20 level occasionally and then comes back to 10 odd levels. For last 16 years the Company has same story.

This means company has not grown over the years and results are stagnant. This fact is beautifully represented in long term price chart.

Cosmo Ferrites Ltd My Opinion

Cosmo Ferrites Limited is in Electrical Equipment accessories sector. There are not many companies listed in this sector. But looking at performance of it over the years I am not convinced.

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It also does not pay any dividend to investors making matter worse. So basically for last 16 years people have not made any profit in this counter.

The product manufactured by Cosmo Ferrites do not have wide spread usage. It is not consumed by end user. Industrial users are only consumer. It consumers minerals as raw materials.

I am not convinced in business and do not expect any decent growth going forward. So I will not advice to track this company.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.


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