ICICI Securities has issued a buy call on Cello World, setting a target price of ₹960 per share. The brokerage is optimistic about the company’s multiple growth drivers, particularly in FY26, driven by operational expansion and strategic initiatives.
Key Highlights:
- Growth Tailwinds for FY26: ICICI Securities remains constructive on Cello World, citing multiple growth tailwinds, including operational efficiencies and improving demand.
- Glassware Unit Contribution: The glassware manufacturing unit, expected to commence operations in Q2FY25, is likely to start contributing to revenue and earnings, adding a new dimension to the company’s product portfolio.
- Synergy Benefits from Wimplast Integration: The integration of Wimplast with Cello World is expected to unlock significant synergy benefits, particularly in distribution, enhancing operational effectiveness.
- Brand and Digital Investments: Increased investments in brand building, digital spends, and quick commerce initiatives are projected to contribute materially to the company’s earnings growth in FY26.
- Demand Recovery: Early signs of growth spurts in Q3FY25 indicate a potential recovery in demand, providing further momentum to the company’s performance.
ICICI Securities’ positive outlook reflects confidence in Cello World’s strategic initiatives, operational enhancements, and robust growth potential over the medium term.
Disclaimer: This article is for informational purposes only. Please consult a certified financial advisor before making any investment decisions.