Systematix starts India's Cello World with 'buy' rating

Cello World

27/12/2023 10:21

** Systematix Institutional Equities initiates coverage on
Indian kitchenware products maker Cello World  CELO.NS  with a
'buy' rating and a TP of 949 rupees, about 22% higher than its
last closing price
    ** Expect compound annual growth rate (CAGR) of about 17% in
revenue and 21% in EBITDA over FY23-26E driven by its consumer
houseware segment and foray into glassware manufacturing with
rev potential of about 2.8 billion rupees - brokerage
    ** Adds that distribution expansion, branding, strong
in-house capability of manufacturing products that drive about
80% of its rev are key growth drivers
    ** Key risks include competition from organized and
unorganized sectors alongside sensitivity to plastic granules
and polymer prices that constitute about 50% of its costs
    ** CELO shares closed 1.7% higher; about 248,000 shares
traded during the session, nearly half its 30-day avg
    ** Stock down about 1.7% so far since debut in Nov


 (Reporting by Dimpal Gulwani in Bengaluru)
 ((dimpal.gulwani@thomsonreuters.com))