Cello World rallies 4% on 4.5% sequential profit surge

Shares of Cello World rallied nearly 4 percent on November 28 after the company reported a 4.5 percent growth in profit on quarterly basis. At 10:09am, the stock was trading at Rs 786 on the NSE.

The consumer-ware manufacturer has recorded a 4.5 percent sequential growth in consolidated net profit at Rs 86.6 crore for the quarter ended September FY24, despite a narrow operating margin, supported by other income.

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Consolidated revenue from operations during the quarter increased 3.6 percent to Rs 489 crore over the previous quarter. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter inched up 0.9 percent on-quarter to Rs 120.3 crore, but margins shrank 70 bps to 24.6 percent as input costs spiralled.

Also read: Bumper debut | Cello World lists at Rs 831, over 28% premium to IPO price

Stock performance

Cello World made an impressive debut on Dalal Street on November 6, as the stationery manufacturer was listed at Rs 829 on the National Stock Exchange (NSE), at a premium of 27.93 percent over its issue price of Rs 648. The stock was listed at a premium of 28.24 percent at Rs 831 on the BSE.

“Despite the premium valuation, the IPO received positive response from investors. This is likely due to the company’s strong brand recognition, diversified product portfolio, and pan-India presence,” said Shivani Nyati, head of wealth at Swastika Investmart, after the listing of the stock.

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