Motilal Oswal Financial Services Ltd rates Cello World Ltd Buy
Cello World stays BUY with TP INR465, based on 23x P/E on FY28E EPS.
By ScoutQuest · · 1 min read
- Report date
- 8 Nov 2026
From the report
The figures below are as printed in the report by Motilal Oswal Financial Services Ltd.
- Rating
- Buy
- Target
- INR465
- Price at report
- INR364
- Upside to target
- 27.7%from the price at report, worked out from the two figures above
- Valuation
- 23x · P/E · FY28E
- Report
- result update
The broker values the stock at 23x P/E on FY28E EPS to arrive at a target price of INR465, reiterating BUY.
Catalysts
The broker's points, summarised.
- Ramp-up of steel bottle production via SKU expansion to 50-55 by Dec'26
- Restart of upgraded glassware furnace by Dec'26
- Product portfolio rationalization and shift to higher-margin offerings
- Opalware utilization rising to ~85% by FY27-end
- Price hikes across key categories and improved product mix
Risks
The broker's points, summarised.
- Elevated input costs
- High natural gas prices in glassware
- Competition from low-priced Chinese imports
- Operational inefficiencies at steel bottle facility
- Subdued consumer demand
Analysts: Sumant Kumar, Yash Darak, Nirvik Saini, Swapnil Upadhyay
Writing instruments drive revenue growth
Motilal Oswal Financial Services Ltd highlights writing instruments revenue up 68% YoY to INR1.4b, helped by the Cello Pens ramp-up.
Steel bottle ramp supports operating leverage
Motilal Oswal Financial Services Ltd expects wider SKU availability, 50-55 SKUs by Dec’26 and two additional lines to improve steel bottle scale and efficiency.
Glassware furnace restart expected by December
Motilal Oswal Financial Services Ltd notes the upgraded furnace should restart by Dec’26, supporting utilization and mix after gas-cost pressure.
Opalware utilization targeted to rise
Motilal Oswal Financial Services Ltd says opalware utilization is aimed at about 85% by FY27-end from 80%, with price hikes and stable volumes aiding revenue.
Margins should recover as mix improves
Motilal Oswal Financial Services Ltd expects portfolio rationalization, higher-margin offerings and cost optimization to lift margins after 2QFY27 EBITDA fell 5% on input costs and steel bottle inefficiencies.
Motilal Oswal Financial Services Ltd's call
Motilal Oswal Financial Services Ltd reiterates BUY with TP INR465. It holds this view because it expects gradual recovery from steel bottle ramp-up, glassware furnace restart and margin expansion through product mix and cost optimization; it maintains revenue/EBITDA/PAT CAGR of 10%/19%/16% over FY26-FY28. The target is based on 23x P/E on FY28E EPS.
Also from Cello World
Cello World makes available audio recording of Q2 FY27 earnings conference call held November 06, 2026
6 Nov 2026
Cello World Q2 FY27: revenue up 8% YoY, EBITDA and PAT decline on input cost pressure
6 Nov 2026
Cello World Q2 FY27: Writing Instruments revenue up 69.5%, EBITDA margin narrows to 21.3%
5 Nov 2026
The call above is Motilal Oswal Financial Services Ltd's, reported here as they made it. Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.