Girish Pai

Nirmal Bang

Equity Bottom-Up

<p>4QFY21 Result Update</p>
<h2>La Opala RG</h2>
<h3>Better days ahead?</h3>
<p>La Opala RG’s (LOG) 4QFY21 revenue performance was ahead of overall expectations led by recovery across the regions. While operating margin witnessed moderation on sequential basis and came below our estimates, the higher costs during the quarter were mainly attributed to starting of bigger furnace. Also, higher CSR and other expenses led to the miss on margin. We expect very strong growth in the next 2 years led by base effect and upcoming…</p>

<p>3QFY21 Result Update</p>
<h2>La Opala RG</h2>
<h3>Revenue growth ahead of management estimates</h3>
<p>La Opala RG’s (LOG) 3QFY21 revenue performance was better than our as well as management expectations, led by strong demand during the festive season. Retail demand came back to pre-Covid levels and the momentum has continued even thereafter. 3QFY21 revenue was flat YoY despite losing some revenue on account of supply chain related issues. While profitability parameters in 9MFY21 are weak compared to CPLY, we expect…</p>

<p>2QFY21 Result Update</p>
<h2>La Opala RG</h2>
<h3>Operational performance in line</h3>
<p>La Opala RG’s (LOG) 2QFY21 operational performance was in line with our expectations. Revenue declined by ~38% YoY whereas EBITDA was down ~55% YoY. Sequentially, revenue grew by ~320% on account of recovery in general trade and e-commerce. Modern trade outlook remains weak in the near term as the Future Group was a key player for LOG (ex-Future, business has shown some recovery in 2QFY21). As business was not operating at optimum…</p>

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<p>1QFY21 Result Update</p>
<h2>La Opala RG</h2>
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<h3>Near-term challenges remain</h3>
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<p>La Opala RG’s (LOG) 1QFY21 revenue declined by ~83% YoY as against our expectation of ~75% YoY decline. Although the capacity utilization at the end of June’20 was ~30%, average capacity utilization for the quarter was fairly low. Lockdown and overall consumer sentiment seriously impacted growth of this segment. This quarter is not comparable with the previous quarters. On profitability side, the overall decline in EBITDA…</p>
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<p>4QFY20 Result Update</p>
<h2>La Opala RG</h2>
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<h3>Structural story intact</h3>
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<p>We re-initiate coverage on La Opala RG (LOG), which is engaged in manufacturing, marketing and distribution of opalware and crystalware products. LOG markets its opalware products under the brands La Opala and Diva and crystalware products under the brand Solitaire. LOG is the market leader in opalware category (~Rs6bn) and has ~48% market share as per our estimate. The other two players - Borosil and Cello - together…</p>
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India

La Opala RG Limited manufactures glass and glass products.

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