La Opala RG share price gained over 2 percent on June 6, a day after Nippon India Mutual Fund bought 18.82 lakh shares or 1.69 percent stake in the tableware company at an average price of Rs 399.05 per share.
Malabar India Fund was the seller of the block. At 12 pm, La Opala was quoting at Rs 412 on the NSE, higher by 2.2 percent from previous close. The stock was up 4 percent on June 5 as well.
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Apart from Nippon India MF, other fund houses that have a stake in the company include ICICI Prudential MF, DSP MF, HDFC MF and Whiteoak Capital. For the quarter ended March 2023, La Opala reported a 52 percent year-on-year increase in net profit at Rs 29 crore. Revenue grew 21 percent to Rs 109 crore in the quarter. Meanwhile, operating margin increased 100 basis points to 37 percent.
Monarch Network Capital, that has a Buy rating La Opala at Rs 570, said, “We believe the brand La Opala remains extremely strong and the company’s strategy to add new retail touch points and focus on improving visibility (aggressive marketing spends continue) is likely to keep growth going”.
The report further said that La Opala has recently started with the distribution of Borosilicate glass and has received a positive response. This is expected to raise their spending on brand building. Till the new furnace reaches peak utilisation, margins could be impacted, it added. La Opala's peak margins are at 40 percent.
The stock is up 5 percent in 2023 so far. The stock touched a 52-week high of Rs 433 on 14 November 2022.
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