La Opala RG Receives 'Sell' Rating from MarketsMOJO Due to Poor Long-Term Growth and Negative Financial Results

La Opala RG, a smallcap glass company, has recently received a 'Sell' rating from MarketsMOJO on November 11, 2024. This downgrade is based on the company's poor long-term growth, with net sales growing at an annual rate of only 4.59% and operating profit at 2.11% over the last 5 years.

In addition, the company's results for June 2024 have been negative, with a decrease of -23.4% in PBT LESS OI(Q) at Rs 20.66 crore and the lowest net sales (Q) at Rs 72.85 crore. Furthermore, non-operating income (Q) is at 34.76% of the profit before tax (PBT).

La Opala RG also has a high ROE of 14.4, making its valuation very expensive with a price to book value of 4.4. The stock is currently trading at a premium compared to its historical valuations. Despite this, the stock has generated a negative return of -21.28% in the past year, while its profits have fallen by -6.8%.

Moreover, the company has underperformed the market (BSE 500) in the last year, with the market generating returns of 30.30% while the stock has generated negative returns of -21.28%.

Other factors to consider include the company's low debt to equity ratio (avg) of 0 times and a technical trend that is currently sideways, indicating no clear price momentum. The technical trend has also deteriorated from mildly bullish on November 8, 2024, and has generated -1.61% returns since then.

It is worth noting that La Opala RG has a high institutional holding of 21.16%, which suggests that these investors have better capabilities and resources to analyze the company's fundamentals compared to most retail investors. Overall, based on the current information, it is advisable to exercise caution when considering investing in La Opala RG.