La Opala RG Q2FY17: Fundamental Analysis - Firstcall India Equity

Firstcall India Equity | May 9, 2016, midnight


SYNOPSIS

  • La Opala RG Limited has been nearly three decades in business (Established in 1987). The Company is India’s only listed pure-play tableware company.
  • The company achieved a turnover of Rs. 697.71 million for Q2 FY17 as against Rs. 629.49 million in Q2 FY16, up by 10.84%.
  • During the 2nd quarter, net profit increased by 13.84% to Rs. 171.51 million from Rs. 150.65 million in the corresponding quarter ending of previous year.
  • During the quarter, EBIDTA stood at Rs. 274.44 million as against Rs. 223.33 million in the corresponding period of the previous year, up by 22.88%.
  • Profit before tax (PBT) stood at Rs. 242.24 million in Q2 FY17 as against Rs. 206.51 million in the corresponding quarter of the previous year, up by 17.30%.
  • EPS of the company stood at Rs. 3.09 in Q2 FY17 against Rs. 2.71 in the corresponding quarter of the previous year.
  • For six month period of FY17, net profit stood at Rs. 280.46 million as compared to Rs. 242.77 million for the Six month ended of previous financial year.
  • In H1 FY17, Net sales stood at Rs. 1208.91 million as compared to Rs. 1149.24 million in H1 FY16, up by 5.19%.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 15% and 25% over 2015 to 2018E, respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 535.85, the stock P/E ratio is at 44.39 x FY17E and 40.48 x FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 12.07 and Rs. 13.24 respectively.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 15% and 25% over 2015 to 2018E respectively.
  • On the basis of EV/EBITDA, the stock trades at 27.80 X for FY17E and 25.15 X for FY18E.
  • Price to Book Value of the stock is expected to be at 10.35 x and 8.68 x for FY17E and FY18E respectively.
  • Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

 

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