Stock to buy for multibagger returns | Brokerage gives ₹90 target in 12 months for ₹33 stock

Stock to buy for multibagger returns: Cellecor Gadgets share price fell 3.33% on Thursday, 27 August, in line with the weakness in the stock market today.

However, amid the decline, an independent equity research firm, LNPR Capital, a SEBI-registered research analyst, has initiated coverage of the consumer electronics company with a ‘Buy’ rating and a 12-month target price of ₹90 per share, implying a potential upside of around 161%.

The brokerage believes Cellecor Gadgets is being valued more like a small-cap trading business despite its evolution into a capital-light consumer brand and distribution platform.

According to the research firm, the company's revenue has compounded at around 70% annually over the last three years, reaching ₹1,292 crore in FY26. During the same period, its EBITDA margin more than doubled to 5.54% from 2.5%, while return on equity stood at around 22%.

The brokerage highlighted Cellecor's extensive distribution network, comprising more than 1 lakh retail touchpoints, 1,800-plus distributors, 2,000-plus service centres and coverage across 25,000 pincodes. Its products are manufactured through partners, including Dixon Technologies, PG Electroplast, Elin Electronics, and Zetwerk, thereby supporting an asset-light operating model.

Mainboard migration, earnings growth among key triggers

According to the brokerage, the proposed migration from the SME platform to the mainboard could act as a major catalyst for Cellecor Gadgets. The company's board approved the proposal on 6 August, with e-voting scheduled to close on 6 September.

The research firm said a mainboard migration could improve liquidity, expand institutional participation and remove certain restrictions associated with SME-listed stocks.

Another key trigger is the company's FY27 revenue guidance of ₹1,800–2,000 crore and PAT guidance of ₹60–70 crore. This implies strong growth over FY26 levels, with the brokerage also pointing to improving profitability trends during the second half of FY26.

Promoter investment and Africa expansion

The brokerage also cited promoter participation through a proposed ₹98 crore warrant subscription at ₹28 per share as a positive sign of promoter confidence. Following the conversion, promoter shareholding is expected to rise from around 46.3% to 53.65%.

In addition, the brokerage sees potential upside from Cellecor's expansion into Africa. The company has raised $33 million through FCCBs, with around $29 million deployed towards a UK holding company. It is also developing a manufacturing facility at a 15-acre site in Liberia's Buchanan Special Economic Zone.

The brokerage believes Cellecor's expansion into Africa offers additional long-term growth potential that is not fully reflected in the current valuation. Overall, it has initiated coverage with a Buy rating and a 12-month target price of ₹90, citing potential benefits from mainboard migration, strong FY27 growth guidance, improving margins, promoter alignment, and international expansion.

Positioning guidance

Cellecor Gadgets share price today closed at ₹33.35 apiece on the NSE. LNPR Capital recommends accumulating Cellecor Gadgets shares in the ₹32– ₹38 range, describing it as an attractive entry zone ahead of the proposed mainboard migration.

The research firm suggests adding to positions following the outcome of the shareholder vote in September 2026 and after the company's proposed direct listing on the BSE mainboard.

For risk management, it has indicated a stop-loss at ₹25and suggested that investors treat the stock as a high-conviction small-cap opportunity. Given the residual liquidity risks associated with its current SME listing, the brokerage recommends limiting exposure to around 2–4% of an investor's small-cap portfolio until the migration process is completed.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.