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Check Before You Invest : La Opala RG Ltd

BSE: 526947 NSE: LAOPALA ISIN: INE059D01020
  |   Sector:  Construction & Infrastructure   |   Industry:  Glass

Snapshot

Q.1 Which industry/sub-sector does La Opala RG Ltd belong to?
La Opala RG Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Glass segment.
Q.2 Is La Opala RG Ltd a good quality company?
La Opala RG Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is La Opala RG Ltd undervalued or overvalued?
La Opala RG Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 20.1 34.04
Price to Book 2.48 4.49
Price to Sales 6.44 10.01
EV to EBITDA 12.97 22.01
Q.4 Is La Opala RG Ltd a good buy now?
La Opala RG Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of La Opala RG Ltd?
La Opala RG Ltd revenue growth is -9.1% for FY-2025, which is below its 5-year CAGR of 4.21%, indicating slower growth.

Q.2 Gross Profit margin of La Opala RG Ltd?
La Opala RG Ltd Gross profit margin which is the profit after deduction of direct costs, is 45.3% for FY-2025, which is above its 5-year median of 42.1%, indicating increasing margins.

Q.3 Operating Profit Margin of La Opala RG Ltd?
La Opala RG Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 32.58% for FY-2025, which is below its 5-year median of 36.65% indicating decreasing margins.

Q.4 Net Profit Margin of La Opala RG Ltd?
La Opala RG Ltd Net Profit Margin is 29.1% for FY-2025, is above its 5-year median of 27.19%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 45.3 42.1
Operating Profit Margin (%) 32.58 36.65
Net Profit Margin (%) 29.1 27.19

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of La Opala RG Ltd?
La Opala RG Ltd Return on Asset is 10.56%, which is in line with its 5-year historical median of 11%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of La Opala RG Ltd?
La Opala RG Ltd Return on capital employed is 16.25% for FY-2025, which is in line with its 5-year historical median of 16.97%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of La Opala RG Ltd?
La Opala RG Ltd Return on equity is 11.53% for FY-2025, which is below its 5-year historical median of 12.43%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of La Opala RG Ltd?
La Opala RG Ltd Cash conversion cycle is 109 days, above its 5-year historical median of 93 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.36 0.4
ROE (%) 11.53 12.43
ROCE (%) 16.25 16.97
Cash Conversion Cycle 109 days 93 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of La Opala RG Ltd?
La Opala RG Ltd Debt-to-Equity ratio is 0.01, which is lower the industry average of 0.24, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of La Opala RG Ltd?
La Opala RG Ltd Debt to cash flow from operations is 0.09, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of La Opala RG Ltd?

Q.1 Promoter shareholding and pledge status of La Opala RG Ltd?
Promoters hold 66.15% of the La Opala RG Ltd, with 0.03% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does La Opala RG Ltd performance compare with that of its Peers?

Q.1 Revenue growth of La Opala RG Ltd vs industry peers?
La Opala RG Ltd revenue CAGR is 4.21%, compared to the industry median CAGR of 4.17%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -9.1 4.2
Gross Profit Growth (%) -12.7 15.3
Operating Profit Growth (%) -20.6 13.5
Net Profit Growth (%) -24.2 3.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.36 0.68
ROE (%) 11.53 8.59
ROCE (%) 16.25 10.21
Cash Conversion Cycle (days) 109.32 67

Valuation & price assessment

Q.1 Stock return of La Opala RG Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -4.4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-4.4% -3.5% -20.8% -20.5%
Q.2 Valuation ratios of La Opala RG Ltd vs historical?
The current P/E ratio of 20.1 is lower than its historical median of 34.04, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 20.1 34.04 34.56
Price to Book 2.48 4.49 2.82
Price to Sales 6.44 10.01 4.32
EV to EBITDA 12.97 22.01 19.12

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