Cello World Limited – IPO review

Cello World Ltd IPO Review

Cello World Limited is a prominent player in India’s consumerware market, with a diverse presence in consumer houseware, writing instruments and stationery, moulded furniture and allied products, and consumer glassware categories. Established in 2018, the company carries a legacy of innovation dating back to 1962. It’s rich heritage spans over six decades, marked by continuous innovation and adaptation to consumer needs. Cello World Limited’s founders have strategically diversified the product range and brand portfolio, staying ahead of market trends and consumer demands.

Cello World IPO Review

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With an extensive range of 15,891 stock-keeping units (SKUs) spanning various categories, Cello World Limited caters comprehensively to diverse consumer needs. The company offers contemporary products across different price points, ensuring accessibility. It Operates 13 advanced manufacturing facilities across India, These facilities form the backbone of the company’s manufacturing operations, enabling it to maintain high-quality standards and meet market demands efficiently. Cello World Limited also boasts a robust and widespread distribution network, delivering its products to consumers across the nation.

Promoters & Shareholding:

The Promoters of Cello World Limited are Pradeep Ghisulal Rathod, Pankaj Ghisulal Rathodand Gaurav Pradeep Rathod. 

ParticularsShareholding Pattern
Promoter Group36.75

Public Issue Details:

Offer for sale: OFS of approx. 29,320,987 equity shares at Rs. 5, aggregating up to Rs. 1,900 Cr.

Total IPO Size: Rs. 1900 Cr.

Price band: Rs. 617 – Rs. 648.

Objective: To provide the opportunity for promoters and shareholders to reduce their stakes and to get the benefits of being listed in the stock exchanges.

Bid qty: minimum of 23 shares (1 lot) for Rs. 14,904 and maximum of 13 lots.

Offer period: October 30, 2023 – November 1, 2023.

Date of listing: November 9, 2023.



  1. Well-established brand name and strong market positions.
  2. Cello World Limited diversified product portfolio across price points catering to diverse consumer requirements.
  3. Track record of scaling up new businesses and product categories.
  4. Pan-India distribution network with a presence across multiple channels.
  5. Ability to manufacture a diverse range of products and maintain optimal inventory levels.
  6. Cello World Limited’s skilled and experienced management team.


  1. Cello World Limited’s reliance on third-party contract manufacturers for certain products exposes it to potential risks.
  2. The Promoter Group plans to maintain a substantial stake post-Offer, ensuring significant influence. Any major change in their shareholding could have significant consequences.
  3. Cello World Limited will not receive any proceeds from the Offer.
  4. Business is subject to seasonality, which may contribute to fluctuations in our results.

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Subscribe or avoid?

Sectorial outlook – India’s consume ware sector is on a robust growth trajectory, driven by a shifting retail landscape and changing consumer habits. In FY 2022, the total retail market reached USD 844 billion, with organized retail accounting for USD 109 billion, contributing 13% of the total. Projections indicate substantial expansion, with the total retail and organized retail markets expected to reach USD 1,418 billion and USD 325 billion respectively by FY 2027. The country’s consumption basket, encompassing essential and discretionary retail, has seen a 9% CAGR from FY 2015 to FY 2022, reaching USD 966 billion. Increasing discretionary spending, fueled by rising incomes and global consume ware trends, is reshaping the market dynamics.

Cello World Limited is primed to capitalize on this burgeoning market. The company’s proactive stance, quality focus, and adaptability to changing consumer preferences position it as a leader, ensuring Cello World Limited thrives in the evolving and competitive consume ware industry in India.

The financials (revenue and net profit) are shown in the graph below:


Valuation – For the last 3 years average EPS is Rs. 10.46 and the P/E is around 62x on the upper price band of Rs. 648. The EPS for FY23 is Rs. 13.17 and the P/E is around 49x. If we annualize Q2-FY24 EPS of Rs. 3.65, P/E is around 44x. It has Borosil Ltd  (P/E of 50.59), Kokuyo Camlin Ltd (P/E of 57.97), La Opala RG Ltd (P/E of 40.81), Stove Kraft Ltd (P/E of 51.49), TTK Prestige Ltd (P/E of 43.78), Linc Ltd (P/E of 33.39), and Hawkins Cookers Ltd (P/E of 40.23) as its peers. The company’s P/E is between 44x and 62x. Revenue and EPS have been growing consistently in the last few years and it has also been able to maintain Net margins around 15-16% consistently. Looking at the valuation, it seems to be fully priced.

Recommendation – In the midst of this thriving consumer ware industry, Cello World Limited stands out as a pivotal force, harnessing its rich heritage and innovative spirit to cater to a wide array of consumer needs. With a diverse product lineup encompassing consumer houseware, writing instruments, moulded furniture, and glassware, Cello World Limited possesses a distinct competitive advantage. Despite the current fully priced valuation, the company has showcased a consistent improvement in its financial performance and boasts a reputable brand name, coupled with promising future prospects. Considering these factors, we recommend investors to “Subscribe” to this IPO, especially those with a medium-long term investment horizon, as it presents a compelling opportunity to participate in the company’s promising growth journey.


This article should not be construed as investment advice, please consult your Investment Adviser before making any investment decision.

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