Cello World (CELLO IN) – Q3FY26 Result Update – Weak performance mainly in consumerware – BUY
Published on 16 Feb 2026
Management indicated Glassware and Writing Instruments as key growth drivers, with glassware targeting ~85% utilization over the next year and offering strong long-term potential for efficiency improvement. The Wimplast merger is nearing completion and is expected to be finalized within ~2–3 months, likely by Q1FY27.
We estimate revenue/EBITDA/PAT CAGR of 12.7%/17.2%/19.6% for FY26-28E. We downward revise FY27/FY28 earning estimate by 16.9%/13.3% factoring supply constraints in the steel category and underutilization of glass plant continue for couple of quarters. We assign SOTP-based TP of Rs621 (earlier Rs732), implying PE of 30x FY27E. Maintain “BUY.”
