Cello World share price up over 10% in April so far; Motilal Oswal remains positive about the stock- 3 key reasons why
₹648 apiece. Brokerage firm Motilal Oswal believes the stock can rise further by as much as 34 per cent. The brokerage firm has reiterated its buy call on the stock with a target price of ₹1,100, based on 45 times FY26E earnings per share (EPS).
Also Read: Motilal Oswal makes key changes to its model portfolio ahead of Q4 earnings; adds Chola Investments, Hindalco, JK Cement As per Motilal, Cello share price is currently trading at 34 times FY26E EPS with RoE (return on equity) and RoCE (return on capital employed) of 32 per cent and 39 per cent, respectively, in FY26E. "Cello is the most diversified consumerware company and one of the top players in the majority of its business segments. It has been one of the leading players across its product categories, boasting a strong brand reputation and distribution reach.
With its strong manufacturing background and brand equity, it has been able to quickly scale up new businesses and compete with market leaders," Motilal said. Also Read: Experts give 'buy' tag despite Rekha Jhunjhunwala trimming stake in NCC shares The brokerage firm expects Cello to deliver a CAGR of 18 per cent, 23 per cent and 25 per cent in revenue, EBITDA and adjusted PAT, respectively, over FY23-26. Here are the three key reasons why Motilal Oswal is positive about the stock: Motilal Oswal pointed out that the consumerware segment saw a strong 33 per cent revenue CAGR during FY21-23, driven by glassware and houseware sub-segments.
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