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Is maintain our BUY rating and maintain our target price of Rs.490. The company continues to report robust topline led by strong growth in the consumer segment, 9M performance was already exceeded FY20 performance, which showcases how far the brand has come. The SIP division continues to support the overall growth. We further believe, the company's decision to demerge its SIP division is a step in the right direction, given both divisions have a different set of requirements and it potentially could pave the way for a larger chance of getting a strategic investor or an M&A opportunity. We continue to believe both the divisions have...

Valuation and rating: We value La Opala on Dec.23 EPS of Rs 13 (Sept 23e.12.4) leading to a TP of Rs .470 (Rs.425), an upside of 18%. We have revised our earnings estimate upward marginally, adjusting for the exceptionally strong performance. With pent-up demand still not entirely satiated, steady but palpable gains from substitution of competing categories, and competitive pricing for what is still perceived as semi-luxury, and La Opala's leadership position, value enhancement can be formidable. Further, with new capacity expected to come on stream by Q1FY23e and foray into borosilicate glass,...

Is maintain our BUY rating with a revised target price of Rs.375 (Rs. 300), the upward revision in price target is on back robust growth in the current quarter and a strong outlook for the future. Borosil posted its best quarterly performance, led by a strong uptick in both Consumer and Scientific divisions. While Q2FY21 was impacted by the pandemic, the company's performance was better than the normalized quarter (+27% compared to Q2FY20). The consumer division continues to gain momentum, with sales in Opalware, Hydra glassware and Appliance gaining traction, this optimism is further backed by positive feedback from channel partners. The Scientific division continues to perform well, despite...

Valuation and rating: We value La Opala on Sept.23 EPS of Rs.12.4 (Rs.11.8) leading to a target price of Rs.425 (Rs.400) an upside of 21% from current levels. Change in target price is due to an upward revision in earnings by 9.6% and 6.2% for FY23E and FY24E respectively. La Opala reported the highest-ever quarterly revenue and we expect a similar kind of buoyancy to continue going forward, with growing demand for Opalware products. Channel checks have indicated strong demand trends and we believe La Opala is well-positioned to capitalize on this. With new Opalware capacity expected to come on...

Valuation and rating: We value La Opala at 36x on Sept.23 EPS of Rs 11.8 leading to a TP of Rs 400 (Rs.380) an upside of 47%. The increase in target price is due to the upward revision in earnings by 6.2% and 3.8% for FY23E and FY24E and due to shift in valuation on Sept'23 basis (Mar'23 previously). The Company started the quarter on a very promising note, however, lockdown truncated the overall enthusiasm. However, with restrictions now being lifted and the number of cases on a steady decline, the company is cautiously optimistic. Going forward the company is looking at introducing two new brands in premium range, which is expected to improve all product offerings. We believe...

The cooker & cookware industry saw a robust uptick in demand led by accentuated preference for home cooked food owing to the pandemic. Revenue trajectory for Hawkins also accelerated with the company nearly covering up its lost sales of Q1FY21 (30% YoY de-growth) by 9MFY21. Revenue for 9MFY21 is now marginally down 0.5% YoY to | 525.1 crore. We believe higher discounting during initial quarters and change in channel mix may have led to gross margin contraction of 395 bps YoY to 52.0%. However, tight leash on operating expenses (down 6% YoY) resulted in...

Revenue trajectory decelerated in Q4FY20 owing to nationwide lockdown from mid-March onwards. For 9MFY20 (April-December), Hawkins continued to outperform peers with revenue growth of 13% YoY. New product launches and higher marketing spending aided topline growth. However, due to significant fall in revenues in Q4FY20, Hawkins exited FY20 with topline growth of mere 3.2% YoY to | 673.9 crore. Despite subdued topline growth, it saw significant improvement in margin profile with EBITDA margins expanding 220 bps YoY to 15.4% in FY20 (one of the highest...

With the company reporting moderate revenue growth in FY13-18 (6% CAGR), FY19 was a turnaround year for Hawkins cooker. The company reported one of its highest topline growth of 18% YoY to | 652.8 crore in FY19. New product launches (five new products launched), coupled with higher marketing spends (up 31% YoY to | 34.7 crore) aided topline growth. Over the years, the pressure cooker industry has grown at a slower trajectory (low single digits), on account of 90% penetration of LPG connections in the urban market. However, government initiatives like...

Pressure cooker industry revival to spur revenues Hawkins reported a robust set of Q1FY19 numbers with revenues growing 50% YoY to | 120.8 crore. Higher raw material expense led to a decline in gross margin by 110 bps YoY to 59.8%. However, with positive operating leverage kicking in, EBITDA margins expanded significantly by 580 bps YoY to 13.9%. Absolute EBITDA grew ~2.6x to | 16.8 crore. Lower other income (down 40% YoY to | 1.3 crore), restricted PAT growth, to a certain extent. Hence, PAT for the quarter came in at | 10.7...