JM Financial initiates India's Cello World with 'buy', shares rise

Cello World

03/01/2024 09:25

** JM Financial initiates coverage of Cello World  CELO.NS 
with "buy" rating and PT at 950 rupees
    ** The PT represents a 17.8% premium to stock's last close
    ** CELO's total addressable market size including
consumerware, writing instruments, moulded plastics is estimated
to be around 743 bln rupees ($8.92 bln) and has seen 9% CAGR in
FY15-23 and is likely to post 8% CAGR to reach 1.02 trln rupees
in FY27 - JM
    ** CELO has outperformed its peers across consumerware and
writing instruments in almost all aspects of revenue growth,
margins and return profile in FY21-23 - JM
    ** Expects CELO's rev/EBITDA/PAT to grow 16%/21%/24% CAGR in
FY23-26 with a potential 16% internal rate of return over the
next 3 years
    ** Shares of CELO rise as much as 2.6% to 827.70 rupees

($1 = 83.2577 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru)
 ((ashish.chandra@thomsonreuters.com (+91 7982114624))