CELLO

Cello World (CELLO) reported ~15% revenue growth in 4QFY25, driven by improved consumer demand with the onset of early summer and the accelerated growth in quick- and e-commerce segments. Growth in Consumerware (up 24% YoY) and Moulded Furniture & Allied products (8% YoY) was partially impacted by a decline in the Writing Instrument segment (down 11% YoY) due to the slowdown in export markets (~48% of the Writing Instrument sales). Despite short-term headwinds, the company anticipates a rebound in consumption-driven demand across segments in FY26, with the company witnessing early signs of recovery of the export market and the growth potential in quick commerce. Outlook We broadly maintain our FY26E/FY27E EPS with improvement in consumer demand in the domestic as well as the export markets coupled with the ramp-up of the glassware capacity. We reiterate our BUY rating with a TP of INR720 (premised on 33x FY27E EPS).