Cello World IPO Review

Cello World Ltd. (CWL) dominates India's consumer ware market across various segments. With an average EPS of Rs. 11.36 and RoNW of 35.60% over the last three fiscal years, the IPO is priced at a P/BV of 11.21 based on its NAV of Rs. 57.79 as of June 30, 2023. Post-IPO, annualized FY24 earnings yield a P/E of 41.51. The issue appears fully priced, factoring in near-term positives. Notably, CWL maintained PAT margins of 15.8% (FY21), 16.2% (FY22), and 15.9% (FY23), along with RoCE margins of 58.7%, 40.9%, and 44.5% for corresponding periods, respectively.