January 08, 2024: Cello World was recently listed after a successful IPO, at ₹829 per share on the NSE, and ₹831 per share on the BSE. This was a 27.93% premium on the NSE and a 28.24% premium on the BSE, compared to the IPO issue price of ₹648 per share.

The Stock since then has seen post-IPO volatility and since last week it has started its trend on Higher HIgh and Low pattern. Looking at the current price action, we are recommending Cello World for a quick swing trade specifically looking at the strength exhibited during the last hour of the trading today.

Fundamentally too, Cello has developed strong competitive advantages in the commodity-plus category of plastic-moulded products. Cello and Unomax brands, with a portfolio of sub-brands, generate EBITDA margins and RoCE of more than 25 percent and 30 percent, respectively. It has developed multiple manufacturing units and established a pan-India multi-channel distribution network as well.

Cello has also tied up with the global media house Disney to strengthen brand equity. We model Cello to benefit from industry growth of 10 percent and formalization of the sector, as the unorganized market share is still 35 percent. Cello has been working on a strong template of steady distribution expansion and differentiated product launches.