Cosco strikes a goal!

There is positional based trading happening on the counters of Cosco (India). This is the only listed sports company as such in India – it makes sports balls for all sports played in India. It is sold under the brand name of Cosco but 60-65% of its revenue comes from trading of fitness equipments and other accessories.

The company stands to gain on two counts – the GST which will bring all unorganized sports companies into tax bracket thus bringing down pricing advantage which the unorganized sector enjoys. Secondly, its main raw material used is rubber, which is today at new lows, which in turn will help improve margins.

Maybe the market is looking at such picks, opportunities which have not yet been fully exploited and thus the new found love for Cosco.

The stock today hit a life time high at Rs.390.60, breaching the 5% upper circuit with some 9500 shares changing hands.