Why is La Opala RG Ltd ?
1
Poor long term growth as Operating profit has grown by an annual rate -0.92% of over the last 5 years
2
Negative results in Dec 24
- PAT(9M) At Rs 70.89 cr has Grown at -31.88%
- INTEREST(Q) At Rs 1.59 cr has Grown at 34.75%
- OPERATING PROFIT TO INTEREST (Q) Lowest at 16.13 times
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 13-Jan-25 and has generated -27.19% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
With ROE of 11.1, it has a Very Expensive valuation with a 2.8 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -37.07%, its profits have fallen by -29.1%
- At the current price, the company has a high dividend yield of 4.7
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -37.07% returns in the last 1 year, the stock has also underperformed BSE 500 in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Glass)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is La Opala RG for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
La Opala RG
-36.93%
-1.04
35.63%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
3.92%
EBIT Growth (5y)
-0.92%
EBIT to Interest (avg)
27.66
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.45
Tax Ratio
27.54%
Dividend Payout Ratio
86.91%
Pledged Shares
0
Institutional Holding
21.22%
ROCE (avg)
27.84%
ROE (avg)
13.26%
Valuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
33
Price to Book Value
2.78
EV to EBIT
21.38
EV to EBITDA
17.70
EV to Capital Employed
4.94
EV to Sales
5.62
PEG Ratio
NA
Dividend Yield
4.69%
ROCE (Latest)
29.75%
ROE (Latest)
11.10%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-14What is not working for the Company
PAT(9M)
At Rs 70.89 cr has Grown at -31.88%
INTEREST(Q)
At Rs 1.59 cr has Grown at 34.75%
OPERATING PROFIT TO INTEREST (Q)
Lowest at 16.13 times
OPERATING PROFIT TO NET SALES (Q)
Lowest at 28.08%
PBT LESS OI(Q)
Lowest at Rs 19.32 cr.
EPS(Q)
Lowest at Rs 2.09
Loading Valuation Snapshot...
Here's what is not working for La Opala RG
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 19.32 cr has Fallen at -20.6% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 24.35 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Interest - Quarterly
At Rs 1.59 cr has Grown at 34.75%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 16.13 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Profit After Tax (PAT) - Latest six months
At Rs 47.23 cr has Grown at -37.32%
Year on Year (YoY)MOJO Watch
Near term PAT trend is negative
PAT (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 28.08%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 19.32 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 2.09
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)