1. At a Glance
Cello World is India’s reigning champion of plastic chic—think lunchboxes, water bottles, and molded furniture—but now with a sexy ₹13,856 Cr market cap and a growth track that screams IPO-to-icon. They’ve thrown in glassware, raised capital, and still managed a 24% ROCE. But can they handle a 245-day cash conversion cycle?
2. Introduction with Hook
Remember when your mom packed you lunch in a Cello tiffin and you thought it was just plastic? Turns out, that lunchbox maker is now a multi-category FMCG juggernaut with IPO flex, factory fires, and QIP placements bigger than most SME IPOs.
- FY25 Revenue: ₹2,136 Cr
- FY25 PAT: ₹365 Cr
- ROCE: 24%
- Dividend payout: 10% (generous… for them)
- Recent glassware factory in Rajasthan. No, seriously.
3. Business Model (WTF Do They Even Do?)
Cello World operates across 3 core verticals:
- Consumer Housewares (Tupperware’s rich cousin): Lunchboxes, bottles, containers
- Writing Instruments & Stationery (Pens, markers, notebooks)
- Molded Furniture (Plastic chairs, tables, monoblocks)
They’ve recently added glassware, post a shiny new factory in Rajasthan, and incorporated a wholly-owned consumer subsidiary.
Revenue split leans heavy on Housewares, but Writing & Furniture are scaling fast.
They sell through modern trade, general trade, D2C, and export channels.
4. Financials Overview
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM % | EPS (₹) |
|---|---|---|---|---|
| FY23 | 1,797 | 285 | 23% | 13.65 |
| FY24 | 2,000 | 356 | 25% | 15.60 |
| FY25 | 2,136 | 365 | 24% | 15.34 |
Insights:
- 3-year PAT CAGR: 18%
- Operating margins improving post IPO
- EPS growth slowed in FY25 despite revenue rise = margin pressure incoming?
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹627 |
| EPS (FY25) | ₹15.34 |
| P/E | 40.9x |
| Book Value | ₹98.1 |
| P/B | 6.39x |
| Dividend Yield | 0.24% |
Fair Value Range:
Assuming 28x to 35x P/E → ₹430 to ₹537
Current price reflects a premium for its brand pull and recent expansions—but any hiccup, and this gets slippery.
6. What’s Cooking – News, Triggers, Drama
- May 2025: QIP approved at ₹852/share = big-ticket fundraise
- Nov 2024: Glassware plant LIVE in Rajasthan
- Feb 2025: Fire broke out at furnace. No injuries, just press drama
- Aug 2024: Launched wholly-owned subsidiary “Cello Consumer Products”
- Strong Export Push: Especially Middle East and South Asia
- IPO Buzz Fallout: From ₹1,000 highs to ₹627 now… Ouch.
Also, OPM dropped from 26% to 24% in just 3 quarters. Keep that lunchbox lid tight.
7. Balance Sheet
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | 98 | 106 | 110 |
| Reserves | 239 | 1,043 | 2,057 |
| Borrowings | 335 | 371 | 5 |
| Fixed Assets | 272 | 362 | 616 |
| Investments | 177 | 170 | 600 |
| Total Assets | 1,547 | 1,970 | 2,642 |
Key Points:
- Net Debt: Basically zero
- Reserve jump = IPO + QIP money, duh
- Capex-heavy FY25 (glassware plant + infra)
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹227 | -₹557 | ₹324 | -₹6 |
| FY24 | ₹231 | -₹256 | ₹26 | ₹2 |
| FY25 | ₹262 | -₹553 | ₹311 | ₹20 |
Takeaways:
- Strong operating cash flow
- Capex bleeding money into plants & infra
- FY25 financing inflow courtesy QIP—nicely managed
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 24.0% |
| ROE | 20.4% |
| OPM | 24% |
| EPS Growth YoY | -1.7% |
| P/E | 40.9 |
| CCC (Days) | 245 |
| Working Capital Days | 281 |
Verdict:
Returns? 🔥
Efficiency? Eh. That CCC needs cardio.
10. P&L Breakdown – Show Me the Money
| FY25 (₹ Cr) | Value |
|---|---|
| Revenue | 2,136 |
| Operating Profit | 510 |
| Other Income | 45 |
| Interest | 1 |
| Depreciation | 62 |
| PBT | 491 |
| PAT | 365 |
Observations:
- Other income significant (₹45 Cr)
- Operating profit flat YoY—despite topline growth
- Margin management is getting tricky
11. Peer Comparison
| Company | CMP ₹ | Sales (₹ Cr) | PAT (₹ Cr) | ROE % | P/E | ROCE % |
|---|---|---|---|---|---|---|
| Cello World | 627 | 2,136 | 365 | 20.4 | 40.9 | 24.0 |
| Hawkins | 9,612 | 1,115 | 114 | 32.0 | 44.3 | 40.9 |
| Borosil | 338 | 1,090 | 65 | 9.3 | 62.5 | 12.5 |
| Inflame | 274 | 106 | 3 | 6.1 | 65.5 | 8.5 |
| Maruti Interior | 106 | 44 | 5 | 14.4 | 33.3 | 17.7 |
Observation:
- Cello World is biggest by revenue and PAT
- Richest valuation (after Borosil)
- Mid-tier ROE among consumer names
12. Miscellaneous – Shareholding, Promoters
| Mar 2025 | % |
|---|---|
| Promoters | 75.00 |
| FIIs | 6.51 |
| DIIs | 13.80 |
| Public | 4.69 |
| No. of Shareholders | 1.22 lakh |
Trends:
- Retail is slowly leaving the party
- Institutions quietly adding
- Strong promoter skin in the game—stable management
13. EduInvesting Verdict™
Cello World is more than a household name—it’s a fast-moving consumer durable brand that’s scaling like an FMCG startup but with margins of an old-school manufacturer.
Strong brand, zero debt, juicy cash flows, and confident expansions = textbook case of “don’t bet against it.”
But…
40x P/E, falling margins, and 245 days of cash conversion means you’re holding the tiffin a bit longer before eating the profits.
It’s good. But priced for perfection.
Metadata
– Written by EduInvesting Research Desk | 14 July 2025
– Tags: Cello World, consumer durables, molded furniture, lunchbox stocks, plastic king, QIP, glassware, ROCE, consumer India
