Well known name in Indian organized crockery and undisputed leader in premium segment
Exporting to multiple country (export contribution ~ 20%, expected to rise to 30%)
Just completed capex at Sitarganj facility (Upto 100% increase in capacity), Has another piece of land (worth 20cr) for further expansion
Anti dumping duty on cheap Chinese and UAE product for next 5 year will going help La Opala
Planning to cater to new segement of supplying products to star hotels
Reducing debt level on each and every quarter (50% reduction in debt level in last 4 yrs)
Promoter buying shares at it’s lifetime high of 190
Number side Story:
- Solid past growth record : 3Y sale @23%, 3Y Profit growth @78%, 3Y ROE @22%
- Healthy divident payout of 18%
- Expected EPS 15 for FY13, 20 for FY14
- DE ratio .36 (reducing every year for last 3yr)
I had a talk with my wife, and she seems to have a high regard for La Opala RG. It seems these cookwares are present in both my house and my in-laws house .
Past consistent growth, good ROE of 20+, reducing DE ratio, end of capex, expected 50% increase in export, good dividend payout, promoter increasing their stake by open market purchase at around CMP, Little bit of advantage because of govt policy, aspirational branded consumer story makes it a compelling stock to look at buy.
Disc: La Opala RG is at around 3% of my portfolio, planning to increase it to 7-8% level of my portfolio in a staggered manner