Consumer Durables · CELLO
Opalware
from 360 today
Cello World reported muted performance in 1QFY27, with EBITDA declining 9% YoY, impacted by higher input costs, lower scale of operations at its steel bottle manufacturing unit due to the non-availability of imported inventory, and subdued consumer demand across categories. We continue to value the stock at 23x P/E on FY28E EPS, arriving at a TP of INR480 and reiterate our BUY rating.
We estimate revenue/EBITDA/PAT CAGR of 8.1%/11.3%/10.1% for FY26-28E. We downward revise FY27/FY28 earning estimate by 1.2%/2.2% factoring in the muted consumerware performance and slower-than-expected ramp-up of the Glassware and Steelware businesses. We assign SOTP-based TP of INR410 (earlier INR503), implying PE of 22x FY28E. Downgrade to 'Accumulate' from 'BUY'.
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