The Company was incorporated on December 21, 2021 as ‘Cosmic CRF Limited’, a public limited company under the Companies Act, 2013. . Subsequently, the Company executed a business transfer agreement with Cosmic Ferro Alloys Limited on January 19, 2022 (NCLT company), Company acquired the CRF unit of Cosmic Ferro AlloysLimited.
Cosmic Ferro Alloys was their family business - which had gone to NCLT in 2018.
The purchase included a manufacturing unit in West Bengal spread over an area of approximately 3.82 acres together with plant, machineries, assets and liabilities, . The unit manufactures a range of cold rolled stainless sections,such as fabricated items for railway, coach & wagons, cold rolled formed items for wagons and coaches, cold rolled formed items for infra companies and EPC projects and products for roadways and national highway.
Current Capacity - 18000 MTPA
Proposed expansion (as per RHP) - 18000 MTPA
As of March 31, 2023, the total order book value of our Company was ₹ 53,640.82 lakhs, out of which orders amounting to ₹ 13,566.33 lakhs have been executed and orders amounting to ₹ 40,074.48 lakhs are ongoing. - As mentioned in RHP
Latest-
Press release on 05th July,2023- Order received from Titagarh Wagons woth 25 crs(to be completed in 4 months)
Total order in hand as on 05/07/2023- 380 crs.
Clientele-
Titagarh Wagons Limited, Hindusthan Engineering & Industries Limited, Melbrow Engineering Works Private Limited, Jindal Rail Infrastructure Limited, Allied Construction Engineers & Fabricators, Railways
Visit their website to know about their products.
https://cosmiccrf.com/
Read
Cosmic-CRF-Limited_RHP.pdf (5.2 MB)
We got the oppurtunity of meeting the management, Mr. Aditya Vikram Birla, and these are the key points noted-
- Their family has been int he railways business for the past 70 years.
- Their largest customer is Titagarh Wagons and mostly all orders related to CRF is fulfilled by Cosmic.
- Capacity has been expanded from 18k to 22k MTPA with a very little capex of 80 Lakhs.
- Confident of achieving 90% capacity utilization in FY24 (Current Capacity - 50%- FY 23)
- They have back to back arrangement for RM, so their EBITDA is mostly fixed
- they have a price variation clause
- They also directly suppy to the Railways.
- Daily 20-25 cr orders are given out by the Government
- Government has more than 100 workshops in which they do refurbishment
- Every 4-5 years wagons go through refurbishment
- In Railways, there are only 7 RDSO approved supplier of CRF
- There are 21 types of wagons and Cosmic is the only company which can cater to CRF components of all the 21 types of wagons.
- Expected revenue for FY 24- around 230-250 cr
FY 25 - around 300-350 cr - They are also looking for further capex oppurtunity and there is a company takeover from NCLT in pipeline.
Financials-
The company started its operations in FY 2023 and that too not for full year.
Risks -
- Very High Client concentration - Top 5 clients - approx 95% of Revenue.
- The NCLT company from which the company has taken over the CRF unit was the promoter’s father company.
- The promoter is estimating FY 24 revenue double of FY 23. (September results will give us a clearer picture)
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