Cosco (India) Limited

Consumer Cyclical — Leisure · BSE

₹185.00+₹3.00 (+1.65%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

The 60-second version of Cosco (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Cosco (India) Limited engages in the manufacture and sale of sports goods in India. It operates through two segments, Own Manufactured Products and Traded Goods.

IndustryLeisure

SectorConsumer Cyclical

Employees398

Annual revenue₹188 Cr

How does it make money?

Turns over ₹188 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 398 employees supports ₹47.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹47.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 8.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +24% while net margin moved +19% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+24%

Margin effect+19%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 1.9% is weak

Quality vs. Valuation

Company Quality

45/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

54/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

66.8x

3Y Median

107.5x

40 monthly readings · mean 102.0x · range 29.2x–215.5x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 38% below its 3y median of 107.5x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 69.2x.

vs. its own history

Cheap

107.5x median over 40 months · -38%

vs. sector peers

Fair

69.2x median of 4 peers · -3%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

17.2x

PEG

4.81

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 282% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.2x — little room if earnings dip.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 38% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 7.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 7.4% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 2%✓ 4.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 7.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.2x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 6% a year✓ 7.4% CAGR
Latest reported year was 9.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹8 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹77 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

66.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.49x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.77

Profitable

Profitable on a per-share basis

ROE

1.9%

Weak

Weak capital efficiency

ROCE

8.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.21x

Moderate

Moderate leverage

Revenue Growth (YoY)

9.8%

Modest

Modest growth

Profit Growth (YoY)

27.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹8 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

7.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

3.4%

Weak

Thin margins leave little room for error

Net Margin

0.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.88

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.27

Defensive

Steadier than the market

52W Range Position

25%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

183.4 / 187.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

54.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹152 Cr	₹176 Cr	₹173 Cr	₹188 Cr	+7.4%
EBITDA	₹8 Cr	₹12 Cr	₹9 Cr	₹8 Cr	+0.1%
EBITDA Margin	5.2%	7.0%	5.0%	4.2%	—
PAT (Net Profit)	₹1 Cr	₹3 Cr	₹1 Cr	₹1 Cr	+13.9%
EPS	₹1.64	₹7.71	₹1.88	₹2.41	+13.7%
ROE	1.5%	6.4%	1.5%	1.9%	—
ROCE	9.2%	14.7%	9.1%	8.1%	—
Total Debt	₹54 Cr	₹57 Cr	₹63 Cr	₹63 Cr	+5.2%
Free Cash Flow	₹2 Cr	₹5 Cr	₹5 Cr	₹8 Cr	+56.3%

🟢 Revenue has grown at 7.4% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (0.1% a year).

🟡 EBITDA Margin has held roughly flat at 4.2% over 3 years.

🟢 PAT (Net Profit) has grown at 13.9% a year over 3 years.

🟢 EPS has grown at 13.7% a year over 3 years.

🟡 ROE has held roughly flat at 1.9% over 3 years.

🔴 ROCE has fallen from 9.2% to 8.1% over 3 years (-1.2 pts).

🔴 Total Debt has grown at 5.2% a year over 3 years.

🟢 Free Cash Flow has grown at 56.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹129 Cr

Total Liabilities

₹78 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹9 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.8%

Corporate Actions

Ex-Dividend Date

20 Aug 2015

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 mixed5 general

Compare with COSCO INDIA

Equitymaster, 15 Oct

Cosco India files FY26 annual report; AGM set for September 30

scanx.trade, 07 Sept

Investors from US, China, India eye $844 million port project in Peru

Business Standard, 13 Oct

Top 5 Indian Sports and Fitness Goods Manufacturers

IMARC Group, 20 Apr

Photoquip (India) Ltd. Peer Comparison – Compare with Others

Value Research, 15 Sept

COSCO SHIPPING Development (SEHK:2866) Heads Into Earnings On A Cheap P E With Cash Flow Doubts

Simply Wall Street, 28 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth · Valuation

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑