La Opala RG Ltd.    
01 Jul 2020
208.50
-0.38%
Nirmal Bang Institutional
We re-initiate coverage on La Opala RG (LOG), which is engaged in manufacturing, marketing and distribution of opalware and crystalware products. LOG markets its opalware products under the brands La Opala and Diva and crystalware products under the brand Solitaire. LOG is the market leader in opalware category (~Rs6bn) and has ~48% market share as per our estimate. The other two players - Borosil and Cello together control ~35-40% of the market. As opalware category forms just ~6% of the overall tableware market, LOG faces competition from other sub-categories like Steelware (60% share), Melamine (~7% share) etc. In our view, durability is the key issue in Indian households and also lack of awareness regarding opalware qualities...
La Opala RG Ltd. is trading below it's 30 day SMA of 214.1
La Opala RG Ltd.    
15 Feb 2019
208.50
-0.38%
Nirmal Bang Institutional
Mixed Show: Revenues In Line, But EBITDA Margin Declines La Opala RG (LORL) posted a mixed set of numbers for 3QFY19. Revenues increased 12.5% YoY and 8.2% QoQ to Rs785mn which were 1.3% below our estimate. The company reported EBITDA of Rs298mn, flat YoY but down 13.2% QoQ and 18% below our estimate. EBITDA margin for the quarter was 38.0%, 761bps below our estimate (-485bps YoY and -936bps QoQ). PAT decreased 4.4% YoY, but increased 1.5% QoQ to Rs219mn, 4.1% above our estimate. For 9MFY19, revenues increased 7.7% YoY to Rs2,061mn. EBITDA of Rs887mn increased 6.5% YoY as the margin declined 50bps to...
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La Opala RG Ltd. is trading below it's 30 day SMA of 214.1
La Opala RG Ltd.    
07 Dec 2018
208.50
-0.38%
Nirmal Bang Institutional
La Opala RG (LORL) ventured into the opalware segment in late 1980s, while its competitors entered this space only a few quarters ago. Just by sheer experience, we can be reasonably sure that LORL has a far better understanding of product manufacturing, channel-partners' demands and consumers' expectations. In fact, we view the entry of new players as a positive signal for the industry and its future growth prospects. LORL is on the path to increase its total capacity by 71% to 36,000tpa by FY21E. All new capacity addition will be in the premium Diva' brand which should help improve margins. Economies of scale should also play its part....
La Opala RG Ltd. has gained 27.64% in the last 6 Months
La Opala RG Ltd.    
13 Jul 2018
208.50
-0.38%
Nirmal Bang Institutional
We had an interaction recently with Mr. Ajit Jhunjhunwala, promoter and Joint managing director of La Opala RG. The Rs4.5bn opal tableware market in India is expected to post a 15%-20% CAGR over the next few years. This growth is supported by rising disposable income and aspirations as well as demand for microwave-supportive tableware. The oligopolistic market is currently dominated by La Opala RG with a 60% share followed by other Indian manufacturers such as Borosil, Cello and Corelle brand products...
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La Opala RG Ltd. has gained 27.64% in the last 6 Months
La Opala RG Ltd.    
31 May 2018
208.50
-0.38%
Centrum Broking
Rs1.35bn new greenfield plant a long term positive We maintain our Buy on La Opala with TP of Rs353 and value the company on our conservative Adj. OCF/EV yield based methodology. We believe the company would continue to post strong double digit volume growth in the opalware segment on the back of affordable pricing and significant under penetration of the category. Further announcement of setting of new plant at a cost of Rs1.35bn would help the company increase capacity from current 25K MT to 37K MT which we believe would be utilised over ~2.5 years and the commercial production would start from Sep'19. Further the...
La Opala RG Ltd. is trading below it's 30 day SMA of 214.1
La Opala RG Ltd.    
09 Nov 2017
208.50
-0.38%
Centrum Broking
We downgrade the stock to Hold with TP of Rs550 (earlier TP Rs555) as we value the company on our conservative Adj. OCF/EV yield based methodology. While the revenue growth has bounced back in the quarter on the back of re-stocking and healthy festive season demand along with margin expansion, competitive intensity continues to remain high. Our channel check suggests that both Borosil and Cello have launched new designs in the market and continue to offer higher trade margins. Uncertainty regarding use of cash on books while valuations at 41x/31x...
La Opala RG Ltd. is trading below it's 30 day SMA of 214.1
La Opala RG Ltd.    
31 Aug 2017
208.50
-0.38%
Nirmal Bang Institutional
We are participating in AsiaMoney's Brokers Poll 2017. We would be pleased if you vote for us as the feedback helps us align our equity research offerings to meet your requirements. Click Here La Opala RG (LORL) reported revenues of Rs475mn for 1QFY18, up 0.6% YoY, but significantly below our estimate of Rs541mn. We were expecting a higher revenue number despite plant shutdown and destocking because of Goods and Services Tax or GST implementation, given the fact that the Madhupur plant which was shut down is a small plant with a capacity of 5,000tpa as against the bigger...
La Opala RG Ltd. is trading above it's 200 day SMA of 186.2
La Opala RG Ltd.    
12 May 2017
208.50
-0.38%
Karvy
Strong Growth in Topline During Q4FY17, High Advertisement Cost Dents EBITDA Margins: La Opala RG Ltd (LORG) revenue witnessed a growth of 41.2% in Q4FY17 to Rs.761 Mn compared to Rs.539 Mn in Q4FY16.EBITDA Margins for the quarter stood at 27.2% compared to 37.9% in Q4FY16 witnessing a drop of (-) 1070 basis points (bps)mainly on account of jump in advertisement cost. LORG was able to better manage the raw material, employee and power cost during the quarter. PAT during the quarter stood at Rs.135 Mn compared to Rs.142 Mn in Q3FY16 and PAT Margins stood at 17.7% in Q4FY17, a drop (-) 868 bps compared to 26.4% in Q4FY16.
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La Opala RG Ltd. has an average target of 233.00 from 1 broker.
La Opala RG Ltd.    
11 May 2017
208.50
-0.38%
Nirmal Bang Institutional
La Opala RG (LORL) reported revenues of Rs761mn for 4QFY17, up 41% YoY. The stellar growth can be attributed to two reasons. Firstly, the company was severely hit by demonetisation in 3QFY17, but witnessed demand revival by the end of December 2016 and sales picked up. Secondly, the company launched two new products under its Diva brand - Quadra and Sovrana in December 2016 which received a huge positive response, thereby contributing to 4QFY17 revenue growth. Total expenses for the quarter were up 65% YoY and stood at Rs554mn, mainly driven by the sharp increase in advertisement and promotion expenses from Rs14mn to Rs113mn (1,232bps increase as a percentage of sales). This resulted in EBITDA remaining flattish YoY at Rs207mn, 11% below our estimate of Rs233mn, and EBITDA margin taking a hit of...
La Opala RG Ltd. is trading above it's 200 day SMA of 186.2
La Opala RG Ltd.    
08 Feb 2017
208.50
-0.38%
Nirmal Bang Institutional
La Opala RG (LORL) posted revenues of Rs661mn for 3QFY17, down 18% YoY, and significantly below our estimate of Rs821mn. The company was severely hit by demonetisation and witnessed volume decline of 10%-12%. Also, in 4QFY16, the company did restructuring of its pricing strategy to promote volume growth and address price anomalies. It went for a 15% reduction in prices of Diva range of products (constituting ~70% of revenues). This change in pricing led to weaker revenues in 3QFY17. The company had also reduced additional promotional trade discount offered to dealers to 0% from 15%. Operating profit was down 26% YoY to Rs446mn, 25% below our estimate, translating to operating profit margin of 32.4%, down...
La Opala RG Ltd. is trading above it's 200 day SMA of 186.2