Prabhudas Lilladher's research report on Cello World
Consumerware revenue (68.7% of total revenue) reported strong growth driven by improved performance in in-house manufactured glass drinkware products, supported by a focus on cost efficiency. Opalware products also performed well during the period. Writing Instruments revenue declined due to reduction in exports, while domestic sales remained flat. CELLO expects revenue momentum to get better with increased capacity utilization at its glassware and opalware plants. Additionally, strong demand for stainless steel products is anticipated, due to import restrictions on Chinese products.
Outlook
The company aims to break even in its Glassware segment by utilizing its complete capacity by FY27. We downward revise CELLO’s FY26/27E earnings by 4.2%/3.2% factoring higher input cost and estimate revenue/EBITDA/PAT CAGR of 15.2%/18.4%/22.2% for FY25-27E. We value the stock at 33x FY27 EPS and arrive at TP of Rs746 (Rs 770 earlier). Maintain ‘BUY’.
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