Cello World Limited (NSE:CELLO) Just Reported, And Analysts Assigned A ₹835 Price Target

Last week, you might have seen that Cello World Limited (NSE:CELLO) released its third-quarter result to the market. The early response was not positive, with shares down 5.0% to ₹612 in the past week. Revenues of ₹5.6b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹3.99, missing estimates by 5.0%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Cello World

Taking into account the latest results, the consensus forecast from Cello World's six analysts is for revenues of ₹24.0b in 2026. This reflects a notable 16% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 29% to ₹19.80. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹24.6b and earnings per share (EPS) of ₹20.80 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

It'll come as no surprise then, to learn that the analysts have cut their price target 8.2% to ₹835. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Cello World analyst has a price target of ₹930 per share, while the most pessimistic values it at ₹708. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Cello World is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Cello World'shistorical trends, as the 13% annualised revenue growth to the end of 2026 is roughly in line with the 13% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 18% per year. So it's pretty clear that Cello World is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Cello World going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Cello World's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.