Cello World Limited (CELLO)
Micro CapConsumer stocks · Micro cap · NSE
Cello World Limited is a prominent Indian consumer products company with over six decades of experience. It manufactures and markets a diverse portfolio across consumerware, writing instruments, and moulded furniture, supported by 14 manufacturing facilities and a pan-India distribution network.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 0/100Rev -0% YoY · PAT -10% YoY · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹527 Cr | -0.4% | -19.4% |
| EBITDA | ₹99 Cr | -9.2% | -23.3% |
| Operating margin | 19.0% | -200 bps | -100 bps |
| PAT | ₹73 Cr | -9.9% | -18.9% |
| PAT margin | 13.8% | -146 bps | +9 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
FY26 revenue grew 9% YoY to Rs. 2,324 crore, but EBITDA declined 5% to Rs. 526 crore and PAT fell 9% to Rs. 332 crore. Q4FY26 saw highest-ever quarterly revenue of Rs. 654 crore (+11% YoY), but EBITDA declined 8% and PAT fell 6% YoY, reflecting margin pressure.
Despite revenue growth, FY26 and Q4FY26 results show significant margin contraction (GP, EBITDA, PAT) due to softer demand in consumerware. Management's strategic initiatives and capacity expansions are crucial for FY27 performance, but current profitability trends put the investment thesis under stress.
Revenue by Vertical (FY26)
Latest issuer-disclosed distribution across 3 reported categories.
Capacity Expansion
Glassware and steel flasks capacity expansion are expected to meaningfully contribute to performance in FY27.
Cello Stationery Brand
Addition of the Cello stationery brand contributed to growth in the Writing Instruments segment.
Product Innovation
Continued innovation to grow wallet share and expand consumer base by expanding product portfolio and developing new ranges.
Distribution Network Expansion
Plans to increase sales velocity by incentivizing distributors and retailers, and expanding presence in existing and new export markets.
Glassware Manufacturing Facility
Glassware manufacturing facility in Rajasthan with an annual capacity of ~20,000 tonnes is being operationalized in a phased manner.
Steel Ware Capacity
Installed steel ware capacity in the manufacturing facility in Falna, Rajasthan to make indigenous steel table ware products.
Planned Capacity Increases
Undertake planned increases in installed capacities of plastic products, insulated ware, moulded furniture and writing instruments and stationery.
Exports Business Revival
Revival of exports business contributed to Q4FY26 growth.
New Premium Product Launches
Contribution from new premium product launches supported Q4FY26 growth.
Softer Demand
FY26 was marked by evolving market conditions and softer demand especially in certain consumerware categories.
Slower Hydration Segment
Performance in the Hydration segment remained slower in Q4FY26.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is essential for assessing annual performance and Q4 trends against the previous year. QoQ is relevant for evaluating sequential momentum, especially with the claim of 'highest-ever quarterly revenue' in Q4FY26.
Revenue Growth (FY26 YoY)
Revenue from Operations grew 9% YoY to Rs. 2,323.7 crore in FY26.
Gross Profit Margin (FY26)
Gross Profit Margin for FY26 was 49.8%, down from 51.7% in FY25.
EBITDA Margin (FY26)
EBITDA Margin for FY26 was 22.7%, down from 26.0% in FY25.
PAT Margin (FY26)
PAT Margin for FY26 was 14.3%, down from 17.1% in FY25.
FY27 Contribution from Strategic Initiatives
The various strategic initiatives undertaken are expected to meaningfully contribute to performance in FY27.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Gross Profit Margin | 49.8% (FY26) | Stabilization or improvement in gross margins, especially in consumerware, given softer demand. |
| EBITDA Margin | 22.7% (FY26) | Reversal of the declining trend in EBITDA margin, indicating effective cost management and pricing power. |
| Hydration Segment Performance | Slower in Q4FY26 | Signs of recovery or improved performance in the Hydration segment, a key consumerware category. |
| Glassware Capacity Utilization | ~60% | Ramp-up in utilization of the new glassware facility to contribute to revenue and operational leverage. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
35Bearishfull bear SMA stack · MACD − · near 52W low
Technical chart
CELLOdaily · 1Y · AUTO-18.6%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 38.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 roughly flat — short-term momentum stalled.
- RSI(14) at 38 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- Within 5% of 52-week low — testing support.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 42 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 42 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 30.6%.
- Balance sheet contributes 11/15 to the score.
Main drags
- Quality is weaker at 3/20; verify the latest quarterly trend.
- Valuation is weaker at 7/30; verify the latest quarterly trend.
- Cash flow is weaker at 3/10; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +2 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 59th percentile of the scored universe and 64th percentile within Consumer. Main check: results consistency is weak at 42/100.
Healthy Trust Lite: Promoter holding is 75%. Key concern: ROCE trend is -8.3%.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Consumer: 64th pctile, median 66 · Micro: 38th pctile, median 73
45 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 75%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1%.
- ▸Debt/equity is 0.01.
Trust risks
- ▸ROCE trend is -8.3%.
- ▸1/4 latest quarters had positive YoY PAT growth.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 24.30
- P/B
- 2.80
- EV/EBITDA
- 14.30
- Market Cap
- 7713.00Cr
Profitability
- ROE
- 13.20%
- ROCE
- 17.40%
- ROA
- 10.79%
- Dividend Y
- 0.44%
Growth (CAGR)
- Revenue 5Y
- 17.00%
- EPS 5Y
- 17.00%
- Revenue 3Y
- 9.00%
- EPS 3Y
- 8.00%
Balance Sheet
- Debt/Equity
- 0.01
- Interest Coverage
- 230.50×
- Altman Z
- 8.81
- Book Value
- 122.00
Cash Flow
- FCF Yield
- 1.02%
- FCF Positive Y
- 2/5
- OCF
- 255.00 Cr
- EPS TTM
- 14.09
Shareholding
- Promoter Hold
- 75.00%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 1%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Consumer, ranked by similarity
Peers
Business-comparable names in Consumer, ranked by similarity
Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.