Cello World stock surges 4% after board approves fundraising via QIP
₹5.At 12:30 pm, the scrip was trading at ₹886.90 per share on Wednesday. The stock closed at ₹860.10.Also read: Multibagger stock: Magellanic Cloud soars 8166% in 5 years, 4078% in 3 years; should you invest?In an exchange filing, Cello World announced that the fund-raising will require shareholder approval.
Qualified Institutional Placement (QIP) is a method used by listed companies to raise funds by issuing shares to qualified institutional buyers.Cello World's fourth-quarter performance exceeded expectations. The company saw its revenue grew by 11 per cent year-on-year to ₹2,000 crore, driven by a 12 per cent annual increase in consumer ware, a 12 per cent annual increase in writing instruments, and a 3 per cent annual increase in molded furniture.The company has projected a revenue growth of 15-17 per cent for the financial year 2025.Brokerage firm JM Financial has maintained its FY2024-26 estimates for Cello with March 2025 of ₹940.
“Cello guides for 15-17 per cent revenue growth for FY25. We broadly maintain our FY24-26 estimates for Cello with Mar’25 TP of INR 940.
We maintain BUY rating," the firm said in a note.Also read: NBCC shares rise 5%, surge over 233% in last one year; what's behind the rally?The firm appreciates Cello's diversified product range, strong branding, extensive distribution network, and exceptional earnings growth and return profile.However, the brokerage identifies key risks such as significant fluctuations in polypropylene prices and potential changes in brand licensing agreements. While demand was very weak in January and February 2024, it began to pick up pace starting in March 2024.
Read more on livemint.com
