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COMPANY PROFILE
La Opala RG Ltd (La Opala), promoted by Mr. Sushil Jhunjhunwala and
Mr. Ajit Jhunjhunwala, is engaged in manufacturing of Opalware and
Crystalware products. La Opala started manufacturing Crystalware in
March 1996, sourcing the exclusive right to use the technical know-how,
information, data for the manufacture and sale of Crystalware in India and
abroad from Doosan Glass of South Korea, a leading manufacturer of
Crystalware globally. Headquartered in Kolkata, La Opala has
manufacturing units in Madhupur (Jharkand) and Sitarganj (Uttarakhand).
INVESTMENT RATIONALE
Strong product portfolio
La Opala deals in Opalware and Crystalware products and has a strong
product portfolio that spans over 100 products.
Capacity expansion
La Opala is increasing its capacity in Uttarakhand by 4000 MT which
will take the total capacity of the company to 12580 MT.
This expansion is likely to be completed by April 2012 and will entail
a capital expenditure of approximately Rs 23 crores. The full benefit of
this expansion will accrue to the company in FY13.
Well established brands catering to all segments of the society
La Opala is one of the established crockery brands in the country. The
company has brands that cater to all sections of the society.
‘Diva’ is the high end brand of the company that caters to the upper
segment of the market. It contributes 40% to the company’s total sales.
The ‘Crystal’ brand also caters to the upper segment and ‘La Opala’
brand is targeted towards the mass market.
Large distribution network
La Opala products are widely distributed in all major towns of the
country through a strong network of 100 distributors and over 35 sales
representatives in all states of India. There are 10,000 retail touch
points through which the products of La Opala are sold.
VALUATION
La Opala is currently trading at a PE of 9.90x FY12E and 8.09x
FY13E EPS. We recommend ACCUMULATE rating on the stock with
a 15 months target price of Rs 159, at 11x FY13E earnings, implying
an upside of 36% from the current levels.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
COMPANY PROFILE
La Opala RG Ltd (La Opala), promoted by Mr. Sushil Jhunjhunwala and
Mr. Ajit Jhunjhunwala, is engaged in manufacturing of Opalware and
Crystalware products. La Opala started manufacturing Crystalware in
March 1996, sourcing the exclusive right to use the technical know-how,
information, data for the manufacture and sale of Crystalware in India and
abroad from Doosan Glass of South Korea, a leading manufacturer of
Crystalware globally. Headquartered in Kolkata, La Opala has
manufacturing units in Madhupur (Jharkand) and Sitarganj (Uttarakhand).
INVESTMENT RATIONALE
Strong product portfolio
La Opala deals in Opalware and Crystalware products and has a strong
product portfolio that spans over 100 products.
Capacity expansion
La Opala is increasing its capacity in Uttarakhand by 4000 MT which
will take the total capacity of the company to 12580 MT.
This expansion is likely to be completed by April 2012 and will entail
a capital expenditure of approximately Rs 23 crores. The full benefit of
this expansion will accrue to the company in FY13.
Well established brands catering to all segments of the society
La Opala is one of the established crockery brands in the country. The
company has brands that cater to all sections of the society.
‘Diva’ is the high end brand of the company that caters to the upper
segment of the market. It contributes 40% to the company’s total sales.
The ‘Crystal’ brand also caters to the upper segment and ‘La Opala’
brand is targeted towards the mass market.
Large distribution network
La Opala products are widely distributed in all major towns of the
country through a strong network of 100 distributors and over 35 sales
representatives in all states of India. There are 10,000 retail touch
points through which the products of La Opala are sold.
VALUATION
La Opala is currently trading at a PE of 9.90x FY12E and 8.09x
FY13E EPS. We recommend ACCUMULATE rating on the stock with
a 15 months target price of Rs 159, at 11x FY13E earnings, implying
an upside of 36% from the current levels.
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