1. At a Glance
From cold-rolled steel to cold-blooded valuations, Cosmic CRF is the SME stock that makes railway wagon components, sheet piles, and structures. Market cap ₹1,193 Cr, P/E ~46, book value ₹445, trading at 2.92x BV — and yes, no dividend. The company’s got Ashish Kacholia on board (18.4% stake), which in SME land is like Sachin showing up for your local cricket match. Still, the stock’s down 24% in a year.
2. Introduction
Founded in 2021, Cosmic CRF is the fresh kid in India’s industrial metals school but already sits in the front row for Indian Railways supply contracts. ISO-certified, product line includes Cold Rolled Form (CRF) profiles, sheet piles, and custom-engineered railway parts.
They’re targeting multiple industries — irrigation, buildings, automotive — but railways are the real ticket.
The stock IPO’d in the SME space and went on a ride — ₹2,210 high to ₹1,111 low — now parked at ₹1,299. FY25 sales at ₹402 Cr, PAT ₹31 Cr, but cash flow from operations is a giant negative ₹73 Cr, making accountants sweat and working capital managers cry.
3. Business Model (WTF Do They Even Do?)
Think of them as the structural backbone provider — literally.
- CRF Sections → For construction, infrastructure, and wagons.
- Sheet Piles → Civil
- engineering projects, especially ports and water control.
- Railway Components → Bogie parts, wagon structures, CRF for wagon sides.
- Custom Engineering → Made-to-order components for industrial clients.
Customers = Indian Railways, wagon manufacturers, infrastructure contractors.
Margins are decent for a steel-based biz (OPM ~11%), which tells you they aren’t in the low-end mass steel market — this is engineered product territory.
4. Financials Overview
FY25 Full-Year:
- Revenue: ₹402 Cr
- EBITDA: ₹44 Cr (11% margin)
- PAT: ₹31 Cr
- EPS: ₹33.56
- Debt: ₹73 Cr
- Cash Flow from Ops: -₹73 Cr
Annualised P/E Check:
EPS ₹33.56 at CMP ₹1,299 → P/E = 38.7 (lower than TTM 46 — slight earnings catch-up).
Commentary:
Solid top-line for a young company, but the negative operating cash screams “working capital sponge.”
5. Valuation (Fair Value RANGE only)
Method 1: P/E Multiple
Industry range (engineered steel SMEs) → 25x–35x.
FV Range
One Response
No mention of orderbook and future growth prospects ?