Shares of Cosmo Films Ltd jumped on Friday on reports the firm will invest Rs 140 crore in CPP line at the company's existing manufacturing plant located at Aurangabad, Maharashtra with annual rated production capacity of 25,000 MT.

Share Market Live

NSE

In an exchange filing, Pankaj Poddar, CEO, Cosmo Films Ltd said that, “Worldwide significant focus is being given on recyclability & sustainability of packing films. Monolayer structure of CPP and BOPP is most preferred structure to address sustainability requirements. With current CPP capacity running close to 100 percent utilisation, the Company planned capacity expansion with the world’s largest width line and lowest cost of production. Other growth plans i.e. Specialised BOPET line, BOPP line, focus towards growing specialty sales, expansion with Cosmo Specialty Chemicals and Zigly are progressing well in line with the plan."

The CPP line will require an investment of about Rs 140 crores to be funded through internal accruals and debts and is expected to commence commercial production in 2 years, the company said.

The stock quoted at Rs 1,764.90 apiece on NSE, up 4 percent at 11.23 am, after opening at Rs 1,711, slightly above the intra-day low price of Rs 1,710. The day's high came in at Rs 1,800 per share.

In the last three years, the stock has returned more than 800 percent to its investors, while the last one year return is almost 184 percent, as per data available on Moneycontrol. So far this year, the stock has delivered 26 percent gains, as per the website.

Commenting on its performance, IIFL Securities' Sanjiv Bhasin told CNBC-TV18, "Cosmo Films and Uflex has been two of our portfolios from Rs 375 levels and they have been five baggers and we were first to spot them when the logistics of GST was playing out."

It had posted net sales at Rs 770.53 crore in December 2021 up 34.64 percent from Rs 572.31 crore in December 2020. The quarterly net profit came in at Rs 104.42 crore in December 2021 up 66.41 percent from Rs 62.75 crore in December 2020.

Cosmo Films is engaged in the manufacturing of semi-finished products of plastics and bi-axially oriented polypropylene films (BOPP) and thermal films. The company operates through two segments: Packaging films and others (equipments and parts).

Also, catch all the live updates from the stock markets with CNBC-TV18's blog