La Opala

La Opala RG is a manufacturer and marketer of life style products in tableware segment, mainly in glass, opal and crystal. In an otherwise lackluster market, this midcap stock was doing very well, hitting a new 52-week high at Rs.617.95. No specific reason, except bargain hunters taking position in the stock for long term.

Financially, the company is doing well. It ended Q1FY16 with a 24% (YoY) rise in net sales and net profit coming in at Rs.9 crore, up 50%. This was despite the 18% rise in total costs, led by a 33% jump in depreciation, 25% rise in raw material costs. 17% jump each in Employee cost as well as power & fuel costs. The biggest jump was in advertising and marketing costs which more than dubled up. EBITDA came in at Rs.15 crore, up 36% and margins improved from 26.83% to 29.41%.

The company’s equity stands at Rs.11.10 crore and reserves is at Rs.174 crore. The company is virtually debt-free. Market cap is at around Rs32300 crore. FII holding in the company has risen from 9.42% to 10.46% (QoQ) while DII holding has reduced marginally from 1.79% to 1.77%. Promoters stake is at 65.02%.