Cello World - Among The Best In Industry: Motilal Oswal

Motilal Oswal Report

Cello World Ltd. has been one of the leading players across its product categories, boasting a strong brand reputation and distribution reach. With its strong manufacturing background and brand equity, Cello has been able to quickly scale up new businesses and compete with market leaders.

The consumer glassware segment will be a key growth segment for the company and we believe Cello will be able to surpass the market leader in the segment on back of operationalisation of its new glassware capacity. 

We estimate Cello to deliver a compound annual growth rate of 18%/23%/25% in revenue/Ebitda/adjuted profit after tax over FY23-26.

Cello is currently trading at 34 times FY26E earnings per share with return on equity/return on capital employed of 32%/39% in FY26E.

We reiterate our Buy rating with a target price of Rs 1,100 (premised on 45 times FY26E earnings per share).

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