Cello World Ltd. share price target

CELLO reported ~5% revenue growth in 3QFY25, driven by festive demand in the first half of the quarter. However, this was offset by a slowdown in consumption and discretionary spending later in the quarter.

Cello World Ltd (CELLO) has achieved significant success within the writing instrument segment (accounted for ~17% of its consolidated revenue in FY24) following its re-entry into the space in CY19.

CELLO reported revenue growth of 6% YoY in 1QFY25, led by consumerware (up 5% YoY; despite demand headwinds) and moulded furniture & allied product businesses.

Cello reported modest revenue growth of 6.1% YoY (in-line with industry’s growth rate) amid weak consumer demand. Gross margin scaled up to 53.8%.

CELLO reported revenue growth of 5%/11% YoY in 4Q/FY24, led by
volume growth of ~8%/15%. EBITDA grew by 20% YoY in 4Q/FY24 as
margin expanded by 330bp/180bp, aided by lower raw material costs and
a better product mix.

Since its foray into the consumer glassware segment in 2017, CELLO has quickly scaled up this business to generate revenue of INR2.8b vs. a total addressable market (TAM) of INR35b in FY23. The segment will be a key growth driver (26% CAGR over FY23-26) for the company amid evolving applications, capacity expansions in opalware and soda lime glassware, increase in SKUs, and import substitution.

Issue Snapshot: Issue Open: October 30 November 01, 2023 Price Band: Rs. 617 648 (Discount of Rs 61 for all eligible employee) *Issue Size: 29,320,987 eq sh (Entirely Offer for Sale of Rs. 1900 cr including Employee reservation of Rs 10.0 cr) Reservation for: QIB upto 50% eq sh Non-Institutional atleast 15% eq sh ((including 1/3rd for applications between Rs.2 lakhs to Rs.10 lakhs)) Retail atleast 35% eq sh Face Value: Rs 5 Book value: Rs 57.79 (June 30, 2023) Bid size: - 23 equity shares and in multiples thereof 100% Book built Issue IPO Note - Cello World Limited

IPO NOTE