LA-OPALA RG- RESULT UPDATES

LA-OPALA RG Ltd

This stock initially recommended around Rs.60 ( Old posting HERE) which is currently trading around Rs.250/- .Today company reported its December quarter result .Sales improved by 80% and bottom line reported a robust growth of more than 130% .Company's performance is far beyond expectation and already recorded  the expected full year EPS in just 9 months itself.Recommending to HOLD the stock ,reasonable upside expected even from current level.

LA-OPALA RG - UPDATE

LA-OPALA RG  is a stock repeatedly recommended from a level of Rs.60/- ( Initial posting HERE) up to Rs.190/- (Latest posting HERE) .Today stock hits its life time high @ Rs.237 /- backed by strong accumulation by promoters even at higher level.( Latest Disclosure HERE). As mentioned in the previous posting, full benefits of recent capacity expansion is expected to reflect in coming quarters. Recommending to HOLD .

LA-OPALA RG -------- REPEAT

La-opala RG  is a stock recommended twice in this blog once around Rs.60 and again @ Rs.165. Now repeating this stock third time @ Rs.190 . La-opala is a name to reckon with in the  Indian organised crockery market and an undisputed leader in premium segment. Company also exporting its opal and glassware products to many countries.Recently company completed a major capacity expansion program in its Sitarganj Factory ( upto 100 % increase in production capacity of this unit ) which will start to contribute from this financial year onwards.With this expansion company is expecting to increase its export contribution from current 20% to 30% in total turnover. Company already owned another piece of land worth about Rs.20 Cr and management indicated  this will be utilised in future for further expansion.Government’s decision to impose anti dumping duty against cheap imports of opal ware from UAE and China for five years will help the company to sustain and improve its margins.Now the company is also targeting corporate business including supply of products to star hotels..etc.which is  untapped till now .Another important point to note is that the company’s efforts to reduce its debt level .In past four years La-opala reduced its debt level  by 50 % which is very important and prudent decision by the management in a high interest rate regime. La-opala is expected to end FY 2012-13 with an EPS of Rs.15+ and FY 2013-14 with Rs.20+ , based on this current valuation is  still at the lower end for a company operating in premium housewares segment with established brand and showing steady growth.There is no strictly comparable pairs but the demand trend of these products are almost similar to the products offered by companies like TTK Prestige ,Hawkins ..etc Citing all these positives management is aggressively purchasing shares( Sample Filing HERE) from open market in past few weeks even the price ruling around its life time high.Considering the favorable demographic changes ,increasing nuclear family centric life  trends ,changing spending habits ,,etc  companies like La-opala  is expected to post robust growth going forward.Recommending this stock third time as a long term buy even at CMP of Rs.190 for investors with some risk appetite.Stock is listed both in NSE and BSE.

Link to Company website HERE

Disc : I have vested interest in La-opala.

LA OPALA RG -BUY

La Opala RG is an undisputed leader of Tableware items in India .The brand 'La opala' commanding a huge brand loyalty in Indian crockery market and the company also exporting its products to almost 30 countries around the world.La opala manufacturing opal and crystal glass wares from its units located at Deoghar and Udhamsingh Nagar in Uttarakhand.Company is steadily increasing its turnover in past many years and its is expected to cross Rs.100 Cr sales by FY 2012.Company is very keen to introduce attractive designs and new varieties time to time which is helping the company to keep its market share in the premium segment of tableware market. This trend is expected to continue in future.Company posted a turnover of Rs.27 Cr and a net profit of Rs.3 Cr in December qtr compared with a sale of Rs.21 Cr and a net profit of Rs.51 lac for the same period last year. Company having a good chance to grow with the increasing consumption theme of Indian middle class in coming years.Investors with long term view can include La Opala RG stock which is currently trading around Rs.66/- in their portfolio.Any dip to around Rs.50/- due to overall market sentiment may take as an opportunity to accumulate more .