La Opala RG Receives 'Hold' Rating from MarketsMOJO, Despite Poor Long-Term Performance

La Opala RG, a smallcap company in the glass industry, has recently received a 'Hold' rating from MarketsMOJO on October 8, 2024. This upgrade is based on various factors such as the company's low Debt to Equity ratio, technical trend improvement, and bullish indicators like MACD, Bollinger Band, and KST.
One of the positive aspects of La Opala RG is its high institutional holdings at 21.49%. This indicates that these investors have better resources and capabilities to analyze the company's fundamentals compared to retail investors.

However, the company has shown poor long-term growth with a low annual growth rate of 4.59% in Net Sales and 2.11% in Operating profit over the last 5 years. In addition, the company's results for June 2024 were negative, with a decrease of -23.4% in PBT LESS OI(Q) and the lowest NET SALES(Q) at Rs 72.85 cr. Non-operating income also contributed to only 34.76% of the Profit Before Tax (PBT).

Moreover, with a ROE of 14.4, the company's valuation is considered very expensive with a 4.5 Price to Book Value. The stock is currently trading at a premium compared to its historical valuations. In the past year, while the stock has generated a return of -20.14%, its profits have also fallen by -6.8%.

Overall, La Opala RG has shown below-par performance in both the long-term and near-term. In the last 1 year, the stock has generated -20.14% returns and has underperformed BSE 500 in the last 3 years, 1 year, and 3 months. Based on these factors, MarketsMOJO has upgraded the stock to a 'Hold' rating.