LNPR Capital, a SEBI-registered research analyst, has initiated coverage of Cellecor Gadgets with a 'Buy' rating and a 12-month target price of ₹90 per share, implying a potential upside of around 161% from current levels. According to reports from LiveMint, the brokerage believes the company is being valued more like a small-cap trading business despite its evolution into a capital-light consumer brand and distribution platform. The stock had fallen 3.33% on Thursday, 27 August, in line with broader market weakness, with shares trading at ₹33.55 per share on NSE during intraday trading. The stock has delivered around 15% return in 2026 so far and 1.2% return in one year, with a market capitalisation of ₹301.43 crore.
The company's financial metrics demonstrate strong performance with revenue compounding at around 70% annually over the last three years, reaching ₹1,292 crore in FY26. As reported by LiveMint, the company's EBITDA margin more than doubled to 5.54% from 2.5% during the same period, 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. According to LNPR Research, this represents a capital-light brand + distribution asset manufactured by established players including Dixon, PG Electroplast, Elin and Zetwerk - the same architecture that has repeatedly driven re-ratings in similar companies like BoAt, Noise and Transsion.
A key catalyst identified by the brokerage is the proposed migration from the SME platform to the mainboard, with the company's board approving the proposal on 6 August and e-voting scheduled to close on 6 September. According to LiveMint, a mainboard migration could improve liquidity, expand institutional participation and remove certain restrictions associated with SME-listed stocks. The company has provided FY27 revenue guidance of ₹1,800–2,000 crore and PAT guidance of ₹60–70 crore, implying strong growth over FY26 levels. LNPR Research notes that the proposed migration and strong FY27 guidance are likely to drive the growth trajectory for Cellecor Gadgets share price in the long-term.
The brokerage cited promoter participation through a proposed ₹98 crore warrant subscription at ₹28 per share as a positive sign of promoter confidence, with promoter shareholding expected to rise from around 46.3% to 53.65% following conversion. As reported by LiveMint, the company has raised $33 million through FCCBs, with around $29 million deployed towards a UK holding company, and is 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 not fully reflected in current valuation. However, LNPR Research identifies key risks including failure to execute the second half of FY27 guidance, dilution overhang and Africa timing slippage for its greenfield frontier projects that could impact the company's performance.
