Cello World: This newly listed stock is trading 34% above its IPO price; should you buy now?

livemint.com:

Cello World with a positive outlook. The stock, which entered the secondary market in November, is currently performing strongly on exchanges, trading at ₹871 apiece, 34.4% higher than its issue price of ₹648 apiece.

Cello World is one of the leading companies in the consumer ware market in India, with a presence in consumer houseware, writing instruments and stationery, and moulded furniture and allied products categories. JM Financial has listed the following key factors for its bullish outlook: Well-positioned to capitalise on the branded segment: Consumers are increasingly favoring organised players due to factors such as quality assurance, standardised products, improved customer service, transparent pricing, and the trust associated with established brands.

JM Financial notes that Cello's aggressive marketing strategies, extensive distribution network, and expanding product portfolio position it for substantial long-term growth. Also Read: Multibagger stock to buy? Profitmart sees a 115% upside in this chemical stock Proven expertise in scaling new businesses: The brokerage said that Cello has demonstrated an excellent track record in scaling up new businesses and product categories.

It highlights the company's entry into the glassware and opalware sector in FY17, as well as its re-entry into the writing instruments business with the "Unomax" brand in FY19. Small kitchen appliances, which constitute 18% of FY23 TAM, are estimated to see a 9% CAGR in FY23–27 (8% in FY15–23).

At present, Cello has limited offerings in this segment. However, the company now intends to scale up in this segment (select product offerings) over the medium term, leveraging the existing distribution network and manufacturing facilities, it