Cello World Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹376.50+₹13.05 (+3.59%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by moderate debt load, small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Cello World Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Cello World Limited manufactures and sells consumer houseware and glassware products in India and internationally.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees469

Annual revenue₹2,324 Cr

How does it make money?

Turns over ₹2,324 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 469 employees supports ₹4.95 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.95 Cr

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 16.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE17.1%

What is the outlook?

8 analysts covering the stock expect revenue to grow about 11.7% and earnings to grow about 18.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+11.7%

Est. earnings growth+18.9%

Analysts8

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +30% while net margin moved -4% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+30%

Margin effect-4%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 9.2% is steady
✗ Profit CAGR of only 7.6%
✗ Latest-year revenue growth of -0.3% is below the longer-term trend — momentum is fading
✗ Profit fell 1.8% in the latest year

Quality vs. Valuation

Company Quality

62/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

63/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

26.9x

3Y Median

38.1x

37 monthly readings · mean 43.1x · range 21.2x–76.0x

Sector Median

68.5x

median of 3 sector peers

🟢Current valuation is approximately 29% below its 3y median of 38.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 61% below the peer median of 68.5x.

vs. its own history

Cheap

38.1x median over 37 months · -29%

vs. sector peers

Cheap

68.5x median of 3 peers · -61%

vs. generic bands

Fair

15x–35x

EV/EBITDA

17.1x

PEG

3.54

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 89% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 79.1% to 12.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 37.0% to 16.1% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 watch

🟡Margins are compressingFinancial
EBITDA margin is down 3.8 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 62% against revenue up 30% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 89% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 29% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 61% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 25.0% to 21.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 62% against revenue up 30%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 79.1% to 12.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 19%✓ 21.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 9.2% CAGR
Latest reported year was -0.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹36 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 16.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹8,492 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

26.9x

Fair

Fairly valued against the generic band

P/B Ratio

3.08x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹14

Profitable

Profitable on a per-share basis

ROE

12.3%

Moderate

Moderate capital efficiency

ROCE

16.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.41x

Moderate

Moderate leverage

Revenue Growth (YoY)

-0.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-1.8%

Falling

Profits are shrinking

Dividend Yield

0.40%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹36 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

19.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

17.5%

Good

Healthy core-business profitability

Net Margin

14.0%

Good

Strong bottom-line conversion

Current Ratio

8.10

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.27

Defensive

Steadier than the market

52W Range Position

17%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

348.4 / 351.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

63.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,786 Cr	₹2,000 Cr	₹2,136 Cr	₹2,324 Cr	+9.2%
EBITDA	₹446 Cr	₹534 Cr	₹524 Cr	₹491 Cr	+3.2%
EBITDA Margin	25.0%	26.7%	24.5%	21.1%	—
PAT (Net Profit)	₹266 Cr	₹331 Cr	₹365 Cr	₹332 Cr	+7.6%
EPS	₹12.54	₹15.6	₹16.16	₹14.7	+5.4%
ROE	79.1%	28.8%	15.1%	12.3%	—
ROCE	37.0%	33.7%	20.3%	16.1%	—
Total Debt	₹335 Cr	₹371 Cr	₹5 Cr	₹38 Cr	-51.5%
Free Cash Flow	₹113 Cr	-₹33 Cr	₹95 Cr	₹36 Cr	-31.9%

🟢 Revenue has grown at 9.2% a year over 3 years.

🟢 EBITDA has grown at 3.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 25.0% to 21.1% over 3 years (-3.8 pts).

🟢 PAT (Net Profit) has grown at 7.6% a year over 3 years.

🟢 EPS has grown at 5.4% a year over 3 years.

🔴 ROE has fallen from 79.1% to 12.3% over 3 years (-66.8 pts).

🔴 ROCE has fallen from 37.0% to 16.1% over 3 years (-20.9 pts).

🟢 Total Debt has shrunk at 51.5% a year over 3 years.

🔴 Free Cash Flow has shrunk at 31.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,003 Cr

Total Liabilities

₹302 Cr

Cash & Equivalents

₹126 Cr

Operating Cash Flow

₹255 Cr

Capex

-₹219 Cr

Shareholding (proxy)

Institutional Holding

15.8%

Insider Holding

73.5%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

31 Jul 2026

Analyst Consensus

Recommendations

7 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹452.88

+20.3% vs CMP

Target Range

₹400 – ₹550

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

1 positive3 mixed2 general

CELLO WORLD Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 17 Oct

CELLO Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Read This Before Considering Cello World Limited (NSE:CELLO) For Its Upcoming ₹1.50 Dividend

Simply Wall Street, 27 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Cello World shares rise 15% as Bain Capital eyes controlling stake

Moneycontrol.com, 05 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Cello World Ltd. Share Price Rise Streak: CELLO up 6.11%

Univest, 06 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Cello World (CELLO.NS) Slips 2.34% to ₹325.55 as Stock Holds Above ₹309 Support Zone - ETF Creation Redemption

https://www.siam.in/, 30 Sept

Watch Items

Revenue growth is negative (-0.3%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Risk

MiddlingGrowth · Profitability · Valuation

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

All 5 tripwires holding · see Key things to watch ↑