Multibagger stock Of FY22: Shares of Cosmo Ferrites made a new high of Rs 635 with a gain of 4 per cent in intraday on BSE in today’s trading. The stock has rallied more than 3500 per cent so far in the financial year 2021-22. The company’s shares are benefiting from the current earnings and excellent outlook.
Let us inform that Cosmo Ferrites is a leading Manufacturer and Exporter of Soft Ferrite. Apart from this, the company is also an emerging player in the manufacture of wire wound magnetic components.
Let us tell that ferrites are ceramic magnetic materials. Their electrical resistivity (about 106 Ohm-m) is very high. For this reason, they are used in the manufacture of transformers and inductors (chokes) operating at high frequency because they have very low vortex-current losses due to high resistivity.
The market price of Cosmo Ferrites has increased from Rs 17.50 on March 31, 2021 to Rs 3529 at present in FY 2022. The BSE Sensex has seen a rise of only 19 per cent in the same period.
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In the third quarter of FY 2022, the company’s revenue had seen a growth of 82 percent on a year-on-year basis. Apart from this, strong domestic and export demand, strong earnings from sales and expansion in in-house capacity are some of the reasons which have led to steady improvement in the company’s EBITDA.
The company’s EBITDA grew by 260 per cent year-on-year in the third quarter of FY22, while the EBITDA margin increased to 26.4 per cent from 13.34 per cent in the corresponding period last year.
The company’s management says that there is good demand from the domestic and export markets. Apart from this, the company is also making new customers. The government is also focusing on increasing electronic manufacturing, which will benefit the company.
Meanwhile, rating agency CRISIL has increased the Cosmo Ferrites Bank facility rating from ‘CRISIL BB/Positive/CRISIL A4+’ to CRISIL B-/Stable/CRISIL A4′ on March 28, 2022. This rating upgrade is an indication that the company’s operating performance has improved.
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