ICICI Securities has reiterated its ‘Buy’ rating on Cello World with a target price of ₹960, citing multiple growth catalysts on the horizon for FY26. The commencement of the glassware unit in Q2FY25 is expected to contribute to revenue and earnings starting Q1FY26. The glassware segment, which is margin-accretive, is likely to enhance profitability.
The integration of Wimplast is anticipated to unlock synergies in distribution, raw materials, and media sourcing. This could improve EBITDA margins by 50-75bps over the medium term. Investments in brand building, digital efforts, and quick commerce are set to significantly impact earnings beyond FY26.
Additionally, demand recovery appears closer, with growth spurts visible in certain regions during Q3FY25. The company’s focus on Exclusive Brand Outlets (EBOs) is expected to drive sales and strengthen consumer connections. The combination of these factors supports ISEC’s constructive view on Cello World’s growth trajectory.
