Mid-cap stock to buy: Cello World share price jumps 7% after Kotak upgrades it; here's what the brokerage says

Mid-cap stock to buy: Cello World share price jumped over 7 per cent in intraday trade on BSE on Thursday, April 17, after brokerage firm Kotak Securities upgraded the stock to a 'buy'. Cello World shares opened at ₹572.95 against its previous close of ₹562.25 and rose 7.13 per cent to the level of ₹602.35. The mid-cap stock, however, pared gains and traded 3.41 per cent higher at ₹581.40 around 11:30 AM.

Cello World share price trend

Cello World shares have been under pressure over the last year, falling 34 per cent. Till April 16 close, the mid-cap stock has lost 26 per cent in the calendar year 2025.

Cello World share price recently hit a 52-week low of ₹485.20 on April 7 this year. It scaled a 52-week high of ₹1,024.50 on July 4 last year.

Cello World: Kotak upgrades the stock to a buy

Brokerage firm Kotak Institutional Equities (Kotak Securities) upgraded the stock to a 'buy'. However, it trimmed the stock's fair value to ₹710 from ₹815 earlier.

"Cello’s stock is down 35 per cent in the past six months, owing to weak growth trends, further exacerbated by a delay in glass furnace commissioning and higher discounts weighing on margins. We cut FY2026-27 estimates by 5-6 per cent, as we moderate revenue growth estimates and factor in the margin impact in Opalware from Milton’s impending entry," said Kotak.

"We now estimate a 12 per cent EPS CAGR over FY25-27E versus 16 per cent EPS CAGR earlier. We upgrade the stock to a buy with a revised fair value of ₹710 (implies 37 times FY27E PE) from ₹815 (40 times) earlier. The persistent weakness in houseware/writing instruments segments and higher-than-expected competition in Opalware are key risks to our investment thesis," Kotak said.

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