🟢 At a Glance
- Business: India’s leading opal and glass tableware maker
- 5-Year Sales CAGR: ~4% (₹323 Cr → ₹332 Cr)
- 5-Year PAT CAGR: ~17% (₹50 Cr → ₹97 Cr)
- ROCE/ROE: 16.2% / 11.5%
- CMP: ₹263 (30.2x FY25 EPS ₹8.70)
- Working-Cap Days: 646 days (vs. 264 days in FY21)
- Debtor Days: 32
- Inventory Days: 324
- Payable Days: 11
La Opala’s opalware is a kitchen staple, but its slow top-line growth, stretched working capital and valuation loom large under the 30x PE spotlight.
🏭 About La Opala RG Ltd
Founded in 1988 and listed since 1994, La Opala RG Ltd (BSE: 526947, NSE: LAOPALA) pioneered opal glass tableware in India. It offers:
- Opalware: Plates, bowls, dinner & tea sets, mugs, soup & dessert sets
- Crystalware: Stemware, vases, barware, specialty bowls
The brand commands a premium positioning, selling largely through modern retail, department stores, online channels, and a network of distributors across 2,000+ towns.
👥 Key Managerial Personnel (KMP)
- Mr. Sushil Jhunjhunwala – Chairman & Executive Director
50+ years in glass, ex-President of All India Glass Mfg. Federation and Calcutta Chamber of Commerce laopala.in - Mr. Ajit Jhunjhunwala – Vice Chairman & Managing Director
30+ years in glass industry, steered La Opala’s expansion since joining Board in 1989 laopala.inlaopala.in - Mrs. Nidhi Jhunjhunwala – Executive Director
20+ years in marketing & product design; leads branding and innovation laopala.in - Mr. Alok Pandey – Chief Financial Officer
Oversees finance, treasury, and corporate reporting goodreturns.in - Mrs. Nidhi Rathi – Company Secretary & Compliance Officer
Handles regulatory compliance and governance goodreturns.in - Independent Directors: Subir Bose, Santanu Ray, Suparna Chakrabortti, Rajiv Gujral, Arun Churiwal laopala.in
📊 Five-Year Financial Snapshot
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 | 5-Yr CAGR (%) |
|---|---|---|---|---|---|---|
| Sales (₹ Cr) | 323 | 452 | 365 | 332 | 332 | ~4 |
| EBITDA (₹ Cr) | 122 | 172 | 136 | 108 | 108 | –2 |
| Net Profit (₹ Cr) | 50 | 87 | 123 | 128 | 97 | ~17 |
| EPS (₹) | 4.47 | 7.87 | 11.08 | 11.51 | 8.70 | – |
| ROCE (%) | 17 | 22 | 19 | 16 | 16.2 | – |
| ROE (%) | 12 | 19 | 15 | 19 | 11.5 | – |
| Working-Cap Days | 264 | 209 | 419 | 1,193 | 646 | – |
| Debtor Days | 37 | 29 | 25 | 32 | 32 | – |
| Inventory Days | 353 | 596 | 1,280 | 324 | 324 | – |
| Payable Days | 185 | 206 | 111 | 11 | 11 | – |
- Sales have flat-lined at ~₹330 Cr after peaking in FY22
- PAT tugged higher till FY24, then slipped 24% in FY25
- Margins: OPM averaged ~36–40% pre-FY24, then compressed to ~33%
- Working capital exploded to 1,193 days in FY24, still at 646 days in FY25 — tying up over 1.8x annual sales
🚀 Strategic Events & Business Triggers
- Premiumisation Push
– Higher-end cabinetry sets and crystalware targeting gifting category
– Launched “Opal Divine” premium line in FY22 - Geographic Expansion
– Online channel grew to 15% of sales (FY25)
– Exports to Middle East/SE Asia ~10% of revenue - Cost Optimisation
– In-house furnace revamp in FY23 to cut energy cost by ~8%
– Sourcing shifted to lower-cost raw sand suppliers - Product Refresh
– Seasonal collections and co-branding tie-ups with lifestyle labels - Distribution Rationalisation
– Closed low-productivity branches in FY24; tightened inventory
– Yet, CCC widened as distributors delayed payments
⚖️ Fair Value Estimate 🔍
- Estimate FY26 PAT: assume recovery to ₹110 Cr
- Consumer Durables PE: 20–24x (peer average 22x)
- → Market Cap Range: ₹2,200 Cr – ₹2,640 Cr
- Shares O/S: ~11.1 Cr (₹2,916 Cr/₹263)
- 🧮 Fair Value per Share: ₹198 – ₹238
CMP = ₹263 trades >10% above upper fair value — market pricing in a robust turnaround and premium growth.
📌 EduInvesting Take
La Opala’s opalware once sparkled as the home-dining upgrade of choice. Today:
- ✅ Brand Equity: Premium recall; near-monopoly in opal glass
- ✅ High Margins: 33–40% OPM even amid cost inflation
- 🔴 Sluggish Sales: 4% 5-yr CAGR vs. FMCG peers at 8–10%
- 🔴 Working-Cap Drag: 646 days ties up ₹600+ Cr in receivables and inventory
- 🔴 Volatile PAT: Down 24% in FY25
You’re paying 30x EPS for a company growing profits at mid-teens, not two-digits like faster consumer names. The premium brand and pricing power justify some multiple, but valuation leaves little room for execution slip-ups.
🚩 Risks & Red Flags
| 🚩 Red Flag | Impact |
|---|---|
| Working-Cap Days | 646 days → ₹600+ Cr cash locked; must normalize or need debt |
| Sales Stagnation | Flat FY22–25 revenue; margin lever only until topline recovers |
| Inventory Glut | 324 days of stock → risk of obsolescence & write-downs |
| Valuation Premium | 30x vs. fair 20–24x; high bar for turnaround execution |
| Channel Dependency | 85% reliance on modern & department stores — footfalls matter |
🧠 Final Word
La Opala RG is the original tableware star, but its growth engine has stalled. Premium pricing sustains margins, yet the enormous working-cap cycle bleeds cash.
At ₹263, you’re betting on:
- A return to double-digit sales growth
- Normalization of working capital to sub-180 days
- Stable opal-glass margins despite raw-material inflation
If these happen, EPS can rebound to ₹11–12 and the stock could re-rate to ₹300+. But until La Opala clears its inventory hangover and tightens collections, the glass ceiling above ₹240–250 remains real.
Bottom line: A starter position can be taken around ₹220–230 on a working-cap improvement trigger. At current levels, wait for concrete debt or inventory reduction before topping up.
✍️ Written by Prashant | 📅 June 17, 2025
Tags: la opala rg, opal glassware, tableware stocks, working capital, consumer durables, branded tableware, eduinvesting recap, inventory trap, premium margins, glass industry analysis
