ICICI Securities's research report on Cello World
Cello delivered healthy Q2FY26 partially aided by festive buying and favourable base. We note multiple growth drivers are likely to unfold in H2FY26-27 as (1) Re-acquisition of the 'Cello' brand for writing instruments from BIC will allow Cello to leverage its own manufacturing units and distribution to drive market share gains in pens. (2) As Cello brand will be only with Cello group for all consumer segments, it will allow the company to strengthen the investments in new launches, product differentiation, new designs and relaunches. (3) Glassware plant hit break-even at even at 60% utilisation levels. We model it to be chief margin driver in FY27-28E. (4) Commissioning of new plant for steel products by Dec'25 would aid import substitution. (5) Cello is on track for guided revenue growth of 12–15% YoY in FY26,
Outlook
With operating EBITDA margin of 22 23%. Maintain BUY with a DCF-based revised TP of INR 750 (earlier INR 700; implied P/E of 34x FY28E EPS).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
