La Opala
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2958
Printed Date: 21/Apr/2025 at 1:36am
Topic: La Opala
Posted By: $x$=$
Subject: La Opala
Date Posted: 27/Aug/2010 at 8:00pm
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La Opala R G Ltd. (BSE & NSE)
Its a good play on Aspirational Indian Consumers. I guess everyone would have heard of this name before. If not, ask your mom, wife or sister. Just incase if they also don't know the company. Check out the following link http://www.laopala.in/ An old well run regular dividend paying company. Check out the financials. http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=526947 ------------- I buy businesses... |
Replies:
Posted By: iaditya
Date Posted: 27/Aug/2010 at 10:33pm
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PE is 21. Div Yield of 1.5%. Erratic Profitability. At its 52 week high. Why bother ? ------------- Buy Solid Companies. Hold for 5 years. Avoid watching TV. Sleep Well. |
Posted By: anthro
Date Posted: 27/Aug/2010 at 11:04pm
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Does anyone know how is the corporate governance ? Their previous auditor M/s Rajneesh Agarwal did not offer themselves for reappointment in 2007 - Does any one know why ? Does management trade in their own shares ?
For a small cap as this i will give more weightage to their corporate governance . I think if we can meet management then we might formulate our view.
Anthro
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Posted By: $x$=$
Date Posted: 27/Aug/2010 at 12:14pm
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@iaditya
I asked myself the same questions 4 months ago and gave the stock a pass. But sometimes what lies between the topline and bottomline matters. What i didn't realize at that point of time was that promoters were steadily increasing their stake in the company. Past two years were terrible for the company: In 2008, Financials were badly hit because of the two reasons. Firstly, company took debt to build plant (to double its capacity) which got delayed due to some technical issues and the factory came online in the next fiscal. Secondly, company's 20% revenue came from international sales and that time rupee appreciated. In 2009, already hit by recession, the company lost a ~16.6cr in forward contracts. However, if you look closely into the recent financials company's sales growth was not much affected. The Tableware industry is growing at ~20%pa and the Organised Tableware in India constitutes only 8% of the total market. And i see further growth in company’s business. ------------- I buy businesses... |
Posted By: $x$=$
Date Posted: 27/Aug/2010 at 12:15pm
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Currently,stock trade at ~17xpe taking into account ltm eps of Rs3.1.
The stock trade at less than 1x sales/mkt cap. Company's current market value is ~55cr, while 2010 sales were ~78cr. Company has recently posted 50% growth in june quarter. Further as company deleverage its balance sheet PE ratio would look more attractive (look at the interest expenses declining very quarter). ------------- I buy businesses... |
Posted By: $x$=$
Date Posted: 27/Aug/2010 at 12:23pm
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@Anthro
I agree with you that corporate governance is the most important thing for small caps. And the measure i use judge corp governance is the ability of the promoters share wealth with the minority stakeholders. The company has passed on this test. Listed prior to 2001 the company has missed dividend payment only once (during the recent recession). While the dividends were growing, the company also rewarded shareholders with bonus issue ------------- I buy businesses... |
Posted By: anthro
Date Posted: 28/Aug/2010 at 4:15pm
These are type of questions i have . Anthro
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Posted By: rajivsubra
Date Posted: 28/Aug/2010 at 5:56pm
Well said! |
Posted By: vinvestor
Date Posted: 04/Sep/2010 at 12:25pm
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Here is what I know about this company: I went and visited their factory in UP. Not because I was doing research on it, but it was next to my cousins factory. I was *shocked* to see the finished inventory in the factory. That's all cash!! This was in Aug 2009. The manager of the factory spent considerable time with me, as I was the only person he could intelligently talk to about the economy. He said that the owners are very simple people and live a pretty simple life. I did not do any research on the company either before or after my visit. My take on this is - These are one time buying items. I mean you don't go and buy plates every year. And whether you buy a plate depends on if you like the design on it or not - not the brand as much! - These two are the reasons why I never looked into the company. No customer captivity, and the inventory really turned me off - but this was a year ago. |
Posted By: $x$=$
Date Posted: 13/Sep/2010 at 12:09pm
14% up in today trade  ------------- I buy businesses... |
Posted By: $x$=$
Date Posted: 13/Sep/2010 at 7:18pm
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30-35% growth!!!!!
http://www.moneycontrol.com/news/business/la-opala-expects-to-clock-rs-95-100crrevenue-this-yr_484229.html ------------- I buy businesses... |
Posted By: $x$=$
Date Posted: 02/Apr/2011 at 6:14pm
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Reason for upsurge in price today
http://www.moneycontrol.com/news/stocks-views/la-opala-rg-has-target-rs-125-tater_533513.html ------------- I buy businesses... |
Posted By: $x$=$
Date Posted: 14/May/2011 at 12:03pm
Stellar performance.. ~240% growth in net profit yoy Operating Leverage is starting to play out ------------- I buy businesses... |
Posted By: Noodle
Date Posted: 25/Jul/2011 at 9:43pm
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This one's on fire.
Up 46% in 3 months. Made some here. :D |
Posted By: TCSer
Date Posted: 25/Jul/2011 at 10:55am
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Its a play on India consumption story with good brand n good scope. Shud we enter now ? ------------- Share market is nothing but a game of temperament. Success mantra Right Price,Right Business,Patience, Conviction .Do not do panic buying or selling.It may be the only profession where inactivity pays |
Posted By: shontou
Date Posted: 08/Sep/2011 at 9:31pm
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SKP Securities report on La Opala
http://breport.myiris.com/SKPSEC/LAOPAGLA_20110908.pdf - http://breport.myiris.com/SKPSEC/LAOPAGLA_20110908.pdf ------------- Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday? |
Posted By: commnman
Date Posted: 07/Nov/2011 at 2:40pm
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La La La Opala!
Q2/Fy-12 Results out... Total Income up 31.3% to 32.5 Cr from 27.84 Cr. EBIDTA up 38.8% to 7.54 Cr from 5.43 Cr. Net Profit up 46% to 3.28 Cr from 2.25 Cr. EBIDTA margin is 23.2% V/s 21.4% (JQ-11) and 21.9% (SQ-10) NET Pr margin is 10.1% V/s 9.7% (JQ-11) and 9.1% (SQ-10) Total Raw material costs (Including Packaging) as a %ge to Income is 20.8% V/s 21.8% (JQ-11) and 22.6% (SQ-10) Employee costs to Income is 12.7% V/s 13.6% (JQ-11) and 14% (SQ-10) Power&Fuel expenses to Income is 15.5% V/s 17.3% (JQ-11) and 16.1% (SQ-10) Other expenses to Income is 23.7% V/s 22.1% (JQ-11) and 20.6% (SQ-10) H1/Fy-12 v/s H1/Fy-11: Total Income up 24.1% to 57.67 Cr from 46.48 Cr (FY-11/ 100.82 Cr) EBIDTA up 32.8% to 12.91 Cr from 9.72 Cr (FY-11/ 21.33 Cr) Net Pr up 53% to 5.73 Cr from 3.74 Cr (FY-11/ 9.32 Cr) Tax Rate 31.1% V/s 33.2% Reported Half-Year EPS 5.41 V/s 3.53 (FY-11/ 8.8) - ------------- main toh aam aadmi hun... jo sunta hoon wohi sach maanta hoon |
Posted By: subu76
Date Posted: 07/Nov/2011 at 6:34pm
| Do you guys know what is driving this one?I can't believe rural folks are lapping up their product and my understanding is that better alternatives exist in cities |
Posted By: srisaurabh2000
Date Posted: 07/Nov/2011 at 10:26pm
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There is capex and expansion planned by Q4 FY11 and also they are moving into higher margin stuff e.g plans to supply to 3 star hotels etc. Milton platics group incidentally owns Treo which has been coming up. But that is not part of the listed entity. |
Posted By: sajit
Date Posted: 07/Nov/2011 at 5:50am
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I think this is also a good consumption story:
LA OPALA is a known brand and I know it is preferred as wedding and house warming gifts. Is any one following this closely? |
Posted By: breeze
Date Posted: 12/Feb/2012 at 6:15am
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Does any body know where can I download the AR from? There web portal doesnt seem to have any reports. ------------- You just have to be opportunistic, and try to figure out what creates value.. where the bottom is, what creates incremental value, and in what combinations" John Malone |
Posted By: somu0915
Date Posted: 13/Feb/2012 at 1:52pm
| http://www.bseindia.com/bseplus/AnnualReport/526947/5269470311.pdf - http://www.bseindia.com/bseplus/AnnualReport/526947/5269470311.pdf |
Posted By: breeze
Date Posted: 13/Feb/2012 at 6:56pm
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Thanks for the link! Not very informative though, no clarity on sources of income, future growth, expansion....
------------- You just have to be opportunistic, and try to figure out what creates value.. where the bottom is, what creates incremental value, and in what combinations" John Malone |
Posted By: baba
Date Posted: 03/Mar/2012 at 1:43pm
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seems to have a good future at 1 st look . .. pretty consistent top n bottom line growth . ------------- A monthly investment of Rs 500 (Rs 17 per day) for 30 years @21%CAGR can create a wealth of Rs 1.5 crores. !!! |