*La Opala | CMP:Rs 320| Mkt Cap: Rs3,560cr | 52W H/L: Rs327/200*
*2QFY22 Result - First Cut*
*Excellent set of numbers- quarterly revenue at a 4 year high!*
La Opala reported revenue growth of 118% YoY to Rs.922.9mn, this is on the back of robust growth in general trade and E-commerce platforms.
EBITDA for the quarter grew by 184% YoY to Rs.355.2mn, while margins expanded by ~900bps YoY to 38.5%. Gross margins for the quarter came in at 74% vis-à-vis 65%.
PAT for the quarter came in at Rs.273.5mn (up 2.7x YoY).
*Outlook*
We believe *demand inflection of Opalware is already underway* as it transforms its image from a luxury to an aspiration if not a necessity, more gifting takes place, and “supporting” products such as microwaves and dishwashers proliferate. Simply rising consumer awareness, aesthetic appeal and convenience, and even entry of new players benefits Opalware.
*Dealer feedback continues to remain positive as reiterated in our previous note* (https://bit.ly/3ijgQZH)
*Expansion into Borosilicate Glass* provides an additional growth driver for the company as alluded in our initiating coverage report (https://bit.ly/3pfk2pW)
*We currently have a “BUY’ rating on the stock, with a target price of Rs.400. We will be revisiting our estimates and sharing them with you shortly.*