Investec stays Sell on Cello World, cuts target to Rs 435 despite Q4 EBITDA beat
Brokerage trims target from Rs 515 and PE multiple to 24x from 30x, citing opalware commoditisation, Chinese dumping in glassware, elevated channel inventory and stretched receivables. PAT seen 26% and 13% below consensus; FY27 revenue growth guided at just 10-12%, with more downgrades expected.
What happened
Investec reiterated Sell on Cello World, cutting target to Rs 435 from Rs 515 despite Q4 EBITDA beat. Brokerage flagged commoditisation in opalware, Chinese
Key facts
- Target Rs 435 (from Rs 515)
- PE multiple cut to 24x from 30x
- PAT 26% and 13% below consensus
- FY27 revenue guidance 10-12%
Why this matters
Cello's compressed multiple and 10-12% FY27 growth guidance could open opportunistic bolt-on or partnership windows in pressured housewares categories as competitors recalibrate.