India's Cello World could see strong revenue and profitability growth, says brokerage; initiates 'add'

Cello World

06/03/2024 07:52

** Shares of Indian consumer products maker Cello World
 CELO.NS  down 1.1% at 805 rupees
  
    ** Kotak Institutional Equities initiates coverage on co
with "add", TP of 950 rupees, ~18% premium to current price
    ** Indian consumerware market is estimated to grow at a CAGR
of ~10% over FY24-27, with segments like consumer homeware and
glassware expected to grow at 9% and 17% CAGR, respectively -
brokerage
    ** Estimates strong revenue and profitability growth for
CELO over FY24-27, with estimated CAGR of 15%, 18%, and 17% for
revenue, EBITDA, and PAT, respectively
    ** Co's revenue, EBITDA, and PAT rose by 32.2%, 26.1%, and
30.4%, respectively, in FY23
    ** Brokerage, however, flags rise in competition in consumer
glassware segment as a key risk


 (Reporting by Navamya Ganesh Acharya in Bengaluru)
 ((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))