The share price of this consumer products firm surged by 6.6 percent to an intraday high of Rs 1,024.50 per share on Thursday after the company announced a Qualified Institutions Placement (QIP) of up to Rs 740 crores.
Share price movement:
With a market capitalization of Rs 21,021.48 crores, the shares of Cello World Limited rose by 3 percent at 3:20 pm and closed at Rs 990.50 apiece on Thursday’s market session. The shares of this company generated a return of 24.04 percent over the past year and 12.72 percent over the past 6 months.
What happened:
According to Cello World Limited’s stock exchange filings, the company announced the raising of funds upto Rs 740 crores through a Qualified Institutions Placement (QIP) on July 3, 2024, for an equity share of face value of Rs 5 each with a floor price of Rs 896.09 per share.
Financials:
Reviewing the financials of Cello World Limited on a year-on-year basis, the revenues rose by 11 percent from Rs 1,797 crores in FY23 to Rs 2,000 crores in FY24. In the same time frame, the net profits increased from Rs 285 crores to Rs 356 crores, demonstrating a 30 percent increase.
Ratios:
In terms of return ratios for the year 2024, it has reported a return on equity (ROE) of 28.80 percent and a return on capital employed (ROCE) of 33.70 percent.
Product portfolio:
Cello has a diverse product portfolio which is broadly categorized into consumer ware, writing instruments, molded furniture, and allied products. The consumer ware segment includes products such as cookware, insulated ware, and kitchen appliances.
In the writing instruments category, Cello offers liquid ballpoint pens, markers, and roller pens. The molded furniture and allied products segment features items such as dustbins and air coolers.
Revenue mix:
Regarding the revenue mix in FY24, 17.1 percent of revenues came from molded furniture and allied products, 66.2 percent from consumer ware, and the remaining 16.7 percent from writing instruments.
About the Company:
Founded in 1958 and headquartered in Mumbai, Cello World is a leading Indian consumer product company mainly dealing in writing instruments and stationery, molded furniture, consumer housewares, and related products.
Written By Zahal
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