Cosmo Ferrites Ltd

• As we are aware, long-term investors always searching for early signs of emerging trends and try to make benefit out of it. Since our government already declared their aim to make India as a manufacturing hub and taking lot of efforts in this direction.  We all know, without developing Electronic Manufacturing, it is not easy to convert India as a manufacturing hub to the world and recent issues related with semi-conductor shortage underlining this fact. With this background let us look into a company that may benefit immensely from India’s efforts to become an electronic manufacturing hub and increasing Electric Vehicle (EV) penetration.
• Whatever be the battery pack, ‘Ferrites’ are unavoidable part of an EV and more than that for the electronics industry. Ferrite can be defined as “Any of a class of metal oxides which show ferrimagnetism; used in transformers, inductors, antennas, recording heads, microwave devices, motors, chargers ,loudspeakers (copied from publicly available sources). Ferrites are generally divided into two - Hard Ferrites and Soft Ferrites. Hard ferrites have high coercivity, so are difficult to demagnetize. They are used to make permanent magnets for applications such as refrigerator magnets, loudspeakers, and small electric motors. Ferrites that are used in transformer or electromagnetic cores contain nickel, zinc, and/or manganese compounds with low coercivity are called Soft Ferrites or Temporary magnets which activate and work only under and electric field. The low coercivity means the material's magnetization can easily reverse direction without dissipating much energy. Out of these, soft ferrite is more complicated both in terms of manufacturing process and characteristic requirements hence we have limited manufactures in India for this and demand for rest is met by imports.
•  Let us look into the application of soft ferries in various fields. In automotive electronics soft ferrites find applications in Battery Management system, DC-DC converter, Car security, Keyless entry system, Auto start/stop, Battery Charger, Lighting ..etc. Another emerging opportunity is in the field of Solar inverter that is gaining wide acceptability in recent times. LED lighting is another big opportunity for ferrites. Smart Energy meter is another big emerging business opportunity for this industry. Among these let us look into EV opportunities specifically. Since magnetic systems used in many components like transformers PCB ..etc., this product is critical for an EV .It is used mainly in EV charger and conversion units as part of Line filters, Inductors, transformers..etc .Ferrite core transformers are present in PCB also that find applications not only in EV but electronic industry as a whole. This clearly means demand for ferrites will increase in tandem with the EV penetration and India’s efforts to make our country a manufacturing hub going forward.

Huge opportunity of growth in future.

 Personally holding shares of Cosmo Ferrites , hence views expressed here may be biased , do own due diligence before taking any investment decision.