Motilal Oswal sees rapid growth for India's Cello World; initiates coverage with 'buy'

Cello World

27/02/2024 06:41

** Shares of kitchenware maker Cello World  CELO.NS  rise as
much as 5% to 885 rupees, last up 3.8%
        ** Motilal Oswal initiates coverage on stock with "buy"
rating on expectations of faster growth than rest of the sector
  
    ** Expects CAGR of 18% for revenue, 23% for EBITDA, and 25%
for adjusted PAT from FY23 to FY26
    ** Cello benefits from expanding TAM (total addressable
market), driven by factors including favourable demographics,
increased discretionary spending, evolving consumer preferences
- Motilal
        ** Sets TP of 1,100 rupees, which is 30.5% higher than
Monday's close
  
        ** Brokerage, however, flags potential risks, including
volatility in raw material prices and increased competition 
  

    


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