Cello World - BIS Order On Potable Water Bottles, DCF Accretive: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.The BIS order regarding compulsory use of standard marks is likely to be implemented in June 2024. We reckon it may lead to accelerated sector formalisation and create competitive advantages for larger and compliant players. While it may impact near-term earnings by ~5%, we believe the discounted cash flow-benefit of potential market share gains will likely offset the impact. Incumbents currently import the potable water bottles (copper, stainless steel and aluminium) and may need to set up their own manufacturing units in India. However, we believe industry may:up-stock inventory in near term; andalso focus on selling melamine and glass bottles more. We believe that smaller and unorganised players (~30% of industry) may see a greater impact. We note similar regulations were implemented in air conditioners and fans too – larger players likely gained market share. Cello World Ltd. (Buy) remains a top pick..Key risks: Steep increase in competitive pressures and raw material prices and failure of key new product launches..Click on the attachment to read the full report:.Ambuja Cement - Buckling Up For Ambitious Growth: ICICI Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Cello World - BIS Order On Potable Water Bottles, DCF Accretive: ICICI Securities

Short-term earnings impact is minor (~5%)

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