Why is La Opala RG Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of 10.55% and Operating profit at 13.95% over the last 5 years
2
With ROE of 12.6, it has a Very Expensive valuation with a 2.9 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -38.94%, its profits have fallen by -12.6%
- At the current price, the company has a high dividend yield of 3.5
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -38.94% returns in the last 1 year, the stock has also underperformed BSE500 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 Diversified consumer products)
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
-38.19%
-1.05
37.02%
Sensex
4.31%
0.45
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
10.55%
EBIT Growth (5y)
13.95%
EBIT to Interest (avg)
28.68
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.57
Sales to Capital Employed (avg)
0.44
Tax Ratio
21.58%
Dividend Payout Ratio
86.19%
Pledged Shares
0
Institutional Holding
20.75%
ROCE (avg)
29.42%
ROE (avg)
13.55%
Valuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
68
Price to Book Value
2.93
EV to EBIT
20.51
EV to EBITDA
16.93
EV to Capital Employed
5.53
EV to Sales
5.82
PEG Ratio
NA
Dividend Yield
3.54%
ROCE (Latest)
26.98%
ROE (Latest)
12.59%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Movement
11What is working for the Company
OPERATING CF(Y)
Highest at Rs 112.21 Cr
OPERATING PROFIT TO INTEREST(Q)
Highest at 27.48 times
PBT LESS OI(Q)
At Rs 28.77 cr has Grown at 40.4% (vs previous 4Q average
PBDIT(Q)
Highest at Rs 35.17 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 38.69%
PAT(Q)
Highest at Rs 26.78 cr.
EPS(Q)
Highest at Rs 2.41
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for La Opala RG
Operating Profit to Interest - Quarterly
Highest at 27.48 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 28.77 cr has Grown at 40.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 20.50 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Operating Cash Flow - Annually
Highest at Rs 112.21 Cr
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 35.17 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 38.69%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 28.77 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 26.78 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 2.41
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)






