Initiating Coverage

Institutional Research
India I Houseware
05 January, 2022

La Opala RG BUY
Price: Rs431
Prepped up for Next Leg of Growth Target Price: Rs520

La Opala RG, a market leader in opalware category in India, is all prepped up for its Market Data
next leg of growth. The company’s greenfield expansion of opalware is almost Bloomberg: LOG IN
complete. It will add 11,000tn of capacity to its existing 25,000tn by 4QFY22. It is 52 week H/L: 487/200
expanding into borosilicate glass segment with total capex of Rs700mn spread over Market cap: Rs47.8bn
next 18 months. Together these two capacities at its peak utilisation will double the Shares Outstanding: 111.0mn
sales for La Opala. Strengthening of demand, revamping of internal sales structure Free float: 31.9%
and sharpening up of e-commerce channel will drive growth in short term. We initiate Avg. daily vol. 3mth: 624,212
with a Buy rating on the stock with 45x Dec’23E with target price of Rs520 and an Source: Bloomberg
upside potential of 21% from CMP.
Changes in the report
New capex to aid growth for next three years Rating: Buy
LOG’s greenfield expansion at Sitarganj, Uttarakhand is complete. Commercial Target price: 520
production will commence during 4QFY22. Minor delay has been on account inability of EPS: NA
team of engineers to arrive from UK and Italy (machinery vendors). LOG has retained Source: Centrum Broking

~25% of the machinery cost (~Rs200mn) until the production commence. Total capex is LOG relative to Nifty Midcap 100
Rs1.35bn with capacity of 11,000tn. At peak, this capacity will yield sales of Rs1.8bn. 210
Apart from this the company is setting up capacity for Borosilicate glass over next 18 LOG

months with capex of Rs700mn. At peak utilization, this capacity will clock sales of Rs1.3- 160
1.4bn sales. These two capacity additions will drive growth for next 3-5 years.
110 NIFTY Midcap 100
Demand scenario strong as ever
Demand for La Opala’s dinner set and cups and saucers have remained strong till Dec. 60
2QFY22 was best quarter in terms of sales and profitability in LOG’s history. We expect Jan-21 Apr-21 Jul-21 Oct-21 Jan-22

3QFY22 to be better than the previous quarter. Demand is led by strong marriage season Source: Bloomberg

(~30% demand for La Opala comes from gifting on occasions) and higher spends by Shareholding pattern
consumers on discretionary items. As per the Confederation of All India Traders (CAIT) Sep-21 Jun-21 Mar-21 Dec-20
estimates, 2.5mn marriages were expected to take place from 14th Nov to 13th Dec’21 Promoter 65.6 65.6 65.6 65.6
and total of Rs3000bn were expected to be spend. Also, opalware traders, who were FIIs 6.2 6.3 6.2 5.9
import dependent, have taken a severe hit due to astronomical rise in ocean freight cost DIIs 14.2 14.7 14.7 14.5
in recent times. We also believe that melamine category has lost share to opalware. Public/other 14.0 13.4 13.4 14.0
Source: BSE
Renewed focus on e-commerce
Management has sharpened its focus on e-commerce channel. The company is
reworking on its online catalogue, building better home page for its website and has
recently done fresh agreements with Flipkart and Amazon. La Opala will have separate
page of its brand on Amazon and Flipkart from Jan’22. It will also have its newly refreshed
website ready in next 3-4 months. Current sales contribution from this channel is 5-6%
of total sales. With the current rework, sales from e-commerce channel will double.
Valuations
We expect sales/EBITDA/PAT to grow at CAGR of 25%/35%/40% respectively over FY21-
24E albeit on a lower base of FY21. We assign a Buy rating on the stock with 45x Dec’23E
with target price of Rs520 and an upside potential of 21% from CMP.

Financial and valuation summary

YE Mar (Rs mn) FY20A FY21A FY22E FY23E FY24E
Revenues 2,700 2,113 3,009 3,574 4,091
EBITDA 1,045 684 1,182 1,462 1,697
EBITDA margin (%) 38.7 32.4 39.3 40.9 41.5
Adj. Net profit 843 496 948 1,170 1,350
Mid Cap

Adj. EPS (Rs) 7.5 4.4 8.4 10.4 11.9

EPS growth (%) 13.8 (41.2) 91.1 23.5 15.4
PE (x) 57.8 98.2 51.4 41.6 36.1
EV/EBITDA (x) 46.6 71.1 40.9 32.6 27.5
Akhil Parekh
PBV (x) 8.9 7.3 6.5 5.8 5.1 Research Analyst, Mid Cap
RoE (%) 15.7 8.2 13.4 14.8 15.1 +91-42159265
Adj. RoIC (%) 31.6 17.5 27.1 30.0 33.1 akhil.parekh@centrum.co.in

Source: Bloomberg, Centrum Broking

Please see Disclaimer for analyst certifications and all other important disclosures.
La Opala RG 05 January, 2022

Thesis Snapshot
La Opala RG versus NIFTY Midcap 100 Valuations
1m 6m 1 year We value La Opala at 45x Dec’23 EPS. Our target multiple on par with its long
LOG IN term 1-yr forward PE multiple. Based on it we arrive at TP of Rs520.
14.9 57.6 80.3
NIFTY Midcap 100 1.9 13.6 43.4
Source: Bloomberg, NSE Valuations Rs/share
Dec’23 EPS 11.5
Key assumptions Target Multiple (X) 45
YE Mar FY21 FY22E FY23E FY24E Target Price 520

Capacity (tn) 25,000 36,000 36,000 36,000

P/E mean and standard deviation
Capacity Utilisation (%) 67 64 76 87
70
Sales Volumes (tn) 16,750 23,040 27,360 31,320 60
Price per kg (Rs) 126 131 131 131 50
Source: Centrum Broking 40
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P/E Mean
Mean + Std Dev Mean - Std Dev
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0
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EV/EBITDA Mean
Mean + Std Dev Mean - Std Dev

Centrum Institutional Research 2

La Opala RG 05 January, 2022

Fragmented dinnerware market

India’s consumer market is one of the most diverse and fragmented globally. Choices of dinner
set materials vary from steel, opalware, bone china, porcelain, stoneware to melamine. Steel
dinnerware dominates the scene, given the importance of inherited or used dinnerware from a
cultural context, ease of availability and differentiated pricing. The dinnerware market in India is
~Rs110bn dominated by steel dinner sets as per the trade data provided by La Opala
management. Steel dominates, with a 60% market share followed by ceramics, primarily bone
china, porcelain and stoneware. As per our estimates, opalware would have surpassed melamine
category in recent times.

Based on our channel checks and shared user experiences we believe that Opalware as a
category beats other segments across various key parameters. Opalware is not just aesthetically
better than most other competing segments but it also fares well in terms of pricing, product
strength and weight. The most important quality of opalware, in an Indian context, is it is non-
absorbent of oil and hence product remains bright and shiny despite using over a long period
time.

Exhibit 1: Steel dominates dinnerware market Exhibit 2: Strength and weaknesses across categories
Material Market size (INR mn) Porcelain &
Opalware Steelware Melamine
Steelware 60,000 bone china
Bone china 24,000 Aesthetically good    
Porcelain 5,400 Price    
Stoneware 600
Chip resistance    
Melamine 7,000
Light in weight    
Opalware 9,000
Total 106,000 Microwave safe    
Source: Centrum Broking, Ambri Inc, Deloitte Industry research Source: Centrum Broking, Ambri Inc

Company Background
La Opala RG promoted by Sushil Jhunjhunwala and Ajit Jhunjhunwala, is engaged in
manufacturing, marketing and distributing opalware and crystalware products. LOG was the first
company in India to introduce opal glass in 1987 by sourcing the technology from Hosan Glass,
South Korea. The company’s first plant, a unit with 650 tonnes pa of capacity, was established at
Madhupur, Jharkhand, which is a region rich in raw materials, such as feldspar and quartz. Later
in 1995, through technology tie-up with South Korea’s Doosan Glass, it started manufacturing
handcrafted crystal glassware at Madhupur with an initial capacity of 1,000 tonnes pa. Today,
capacity at Madhupur stands at 5,000 tonnes pa.

Exhibit 3: A 30 year Journey into Opalware

4,500
4,000 Greenfield plant of
opalware: 11000tn 4,091
3,500 Expanded product
portfolio with cups and Borosilicate plant:
3,000 Launched Diva Ivory saucers 9000tn

2,500 3,009

2,493 2,593
2,000 Launched Diva 2,352
Launched Quadra and Sovrana
1,500 Classique
collections under Diva
Launched Solitaire
1,000
1,150
500
298 509
-
FY98 FY08 FY12 FY16 FY17 FY18 FY22E FY24E
Sales
Source: Company, Centrum Broking

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La Opala RG 05 January, 2022

In 2007, LOG expanded its capacity by doing Greenfield expansion at Sitarganj, Uttarakhand,
with an initial capacity of 4,000 tonnes pa and capex of INR 400mn. Over the years, the company
has scaled its investments in automated manufacturing technology at the Sitarganj unit to
20,000 tonnes. The company has added one more capacity in Sitarganj, near its existing plant,
with total capacity of 11,000tn taking total capacity to 36,000tn. Rapid capacity expansion has
allowed it to capture 50% of organized market share of opal glass. LOG currently exports to 40
countries with a presence in 600 towns in India (with population of more than 0.1mn) and
presence in 12,000 retail outlets.

Exhibit 4: Brand pyramid for La Opala

Sovrana Comes under the

Diva brand

Quadra

Ivory

Classique

La Opala

Source: Company, Centrum Broking

The company’s opalware portfolio includes plates, bowls, dinner sets, cup-saucer sets, coffee
mugs, coffee cups, tea sets, soup sets, pudding and dessert sets while the crystalware portfolio
includes barware, vases, bowls and stemware. LOG markets its opalware products under the
brands, La Opala and Diva (Classique, Ivory, Quadra and Sovrana) and crystalware products
under the brand, Solitaire.

Exhibit 5: Sitarganj facility remains a big driver for company Exhibit 6: Diva continues to be the biggest contributor
(tonnes) La Opala,
Madhupur,
12%
Jharkhand,
5,000 Solitaire, 2%

Sitarganj,
Uttarakhand
Diva, 86%
, 31,000

Source: Company, Centrum Broking Source: Company, Centrum Broking

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La Opala RG 05 January, 2022

Exhibit 7: North and South markets continue to dominate Exhibit 8: Predominantly a domestic player

Export, 14%
East, 20%
North, 30%

West, 23% Domestic,

South, 27% 86%

Source: Company, Centrum Broking Source: Company, Centrum Broking

Exhibit 9: Key Managerial personnel

Name Designation Qualification Commencement Age
Mr. Sushil Jhunjhunwala Chairman Graduate in Commerce 1994 71
Mr. Ajit Jhunjhunwala Managing Director Graduate in Commerce 1997 50
Ms. Nidhi Jhunjhunwala Executive Director Graduate in Arts 2002 47
Source: Company, Centrum Broking

Key pointers from recent interaction from management

Cups and saucers segment going strong
Cups and saucer demand has remained very strong during the pandemic. Currently demand is
outpacing the supply as per the management. To cope up with the strong demand company has
converted its Madhupur unit to manufacture only cups and saucers. This segment currently is
contributing 25-30% to the total sales. Unorganized players and bone china dominated this
segment. Total segment size is ~Rs10bn. Margin profile in this segment is on part with dinner
sets. La Opala has cups and saucers at multiple price points from Rs150 to Rs7000 in this
segment. This item is popular as gifting item for smaller occasions.
A&P strategy to remain regional focused
At national level, viewership has changed dramatically during the pandemic. Audience is shifting
away from popular pan India channels such as Sony, Zee etc. towards more regional channels.
However, despite the consumer shift, ad rates on national channels have not changed. IPL ad
campaigns too remained very expensive costing Rs1mn for a 10-second slot. Hence,
management has now decided to stick to the regional TV channels for its ad campaign. The
company is also in process of finalizing contract with a Mumbai based media company for its
social media campaign.
Entry into borosilicate glass category remains lucrative
The company has decided to enter borosilicate glass category during 2QFY22. This segment is
largely import dependent. Even market leader such as Borosil Ltd is 100% import dependent at
this point of time. Import dependent players are facing severe challenges as the ocean freight
cost has risen multi-fold in last 1.5 years. Freight cost used to be 3-4% of sales in past has now
shot up to 12-14% of sales. Borosilicate glass is Rs5-6bn category and includes lunch boxes,
cooking, bakeware and microwaveable. La Opala decided to enter this category with its own
manufacturing setup with total capacity of 25tn/day or ~9000tn per annum and capex of
Rs700mn. At peak capacity utilization, this capacity can clock Rs13-14bn of sales. La Opala will
be using its existing channel of opalware for sales and distribution.

Centrum Institutional Research 5

La Opala RG 05 January, 2022

Other relevant points

The company is not facing any major challenges in terms of raw material procurement, as
majority of it is domestically available. Company imports 10-15% of its RM requirement from
countries mainly US, Turkey and China. La Opala has started received old pending receivables
from Future Retail. So far, it has received 15% of the receivables and is yet to receive Rs60mn
more. Pre-pandemic sales from Future Retail used to be at Rs20bn per annum (largest supplier
of opalware to Big Bazaar). Sales from Big Bazaar is now back to pre-pandemic level. However,
billing is now done through Reliance Retail. Money stuck in Franklin Templeton debt fund has
been recovered largely. Management has guided for improvement in working capital going
forward as it is trying to bring its distributors on channel financing. It expects most of its
distributors to be on channel finance in next six months.

Consistently rising cash flow from operations

Exhibit 10: Consistently rising cash flow from operations
1,200

1,000

800

600

400

200

-
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
-200

-400
OCF before WC WC changes OCF (net of tax)
Source: Company, Centrum Broking

La Opala’s OCF (before working capital changes) more than tripled over FY12-19 because of
superior nature of the business. Onset of pandemic affected CFO in FY20 and FY21. OCF (post
working capital changes) more than rose six fold over FY12-21.
Exhibit 11: Stable working capital over a very long run
140

120

100

80

60

40

20

0
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
Receivables Inventory Payables NWC
Source: Company, Centrum Broking

Stable cash conversion cycle over long run

Cash conversion cycle has remained stable at 85-90 days until FY19. Cash conversion cycle
deteriorated a tad bit in FY19 due to overall consumer discretionary slowdown. Receivable days
and inventory rose sharply in FY19. Cash conversion cycle stabilized to normal level in FY21.

Centrum Institutional Research 6

La Opala RG 05 January, 2022

Exhibit 12: Healthy OCF to PAT ratio

1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
-
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

Source: Company, Centrum Broking

Conversion of OCF to EBITDA

Conversion of OCF to EBITDA has remained stable at 80% over FY12-18. Working capital cycle
deteriorated a bit in FY19 (because of poor macro conditions) and hence conversion of EBITDA
to OCF dropped to 40%. In FY21, as things stabilized, conversion was more than 100%.
Exhibit 13: EBITDA to OCF conversion has remained stable at 80%
OC/EBITDA
1.4

1.2

1.0

0.8

0.6

0.4

0.2

-
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
Source: Company, Centrum Broking

Consistently healthy FCF generation

La Opala has generate positive FCF every year over last 10 years. Despite consistently scaling up
the capacity, the company has been consistently generating free cash flows. Cumulative FCF
stood at ~Rs3000mn over FY12-21.
Exhibit 14: Stable FCF generation over last 10 years
900
800
700
600
500
400
300
200
100
-
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
OCF Capex FCF
Source: Company, Centrum Broking

Centrum Institutional Research 7

La Opala RG 05 January, 2022

Consistently high RoIC

RoE has been below par because of high cash balance on the balance sheet. However, adjusted
RoIC (adjusted for cross holdings) has been upward of 25% over last many years.
Exhibit 15: High Adjusted RoIC over last 10 years
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
RoE RoCE pre-tax RoCE Adj RoIC
Source: Company, Centrum Broking

Centrum Institutional Research 8

La Opala RG 05 January, 2022

P&L Balance sheet

YE Mar (Rs mn) FY20A FY21A FY22E FY23E FY24E YE Mar (Rs mn) FY20A FY21A FY22E FY23E FY24E
Revenues 2,700 2,113 3,009 3,574 4,091 Equity share capital 222 222 222 222 222
Operating Expense 427 570 602 679 736 Reserves & surplus 5,229 6,436 7,229 8,188 9,293
Employee cost 486 401 474 521 573 Shareholders fund 5,451 6,658 7,451 8,410 9,515
Others 743 458 752 911 1,084 Minority Interest 0 0 0 0 0
EBITDA 1,045 684 1,182 1,462 1,697 Total debt 49 11 11 11 11
Depreciation & Amortisation 160 122 118 171 207 Non Current Liabilities 23 23 23 23 23
EBIT 885 562 1,064 1,292 1,490 Def tax liab. (net) 233 271 271 271 271
Interest expenses 6 3 15 15 15 Total liabilities 5,756 6,962 7,756 8,715 9,820
Other income 167 81 217 286 327 Gross block 2,243 2,294 3,594 3,994 4,294
PBT 1,046 640 1,265 1,563 1,802 Less: acc. Depreciation (1,139) (1,261) (1,379) (1,550) (1,757)
Taxes 204 144 318 393 453 Net block 1,104 1,032 2,214 2,444 2,536
Effective tax rate (%) 19.5 22.5 25.1 25.1 25.1 Capital WIP 254 806 0 0 0
PAT 843 496 948 1,170 1,350 Net fixed assets 1,358 1,838 2,214 2,444 2,536
Minority/Associates 0 0 0 0 0 Non Current Assets 291 215 79 89 97
Recurring PAT 843 496 948 1,170 1,350 Investments 815 1,614 1,614 1,614 1,614
Extraordinary items 0 0 0 0 0 Inventories 550 297 371 411 448
Reported PAT 843 496 948 1,170 1,350 Sundry debtors 438 378 495 568 616
Cash & Cash Equivalents 38 43 411 1,071 2,040
Ratios Loans & advances 0 0 0 0 0
YE Mar FY20A FY21A FY22E FY23E FY24E
Other current assets 2,618 3,031 3,031 3,031 3,031
Growth (%)
Trade payables 121 130 206 215 224
Revenue (2.9) (21.8) 42.4 18.8 14.5 Other current liab. 210 299 239 284 325
EBITDA (7.0) (34.6) 72.8 23.8 16.1 Provisions 25 26 14 14 14
Adj. EPS 13.8 (41.2) 91.1 23.5 15.4
Net current assets 3,289 3,295 3,849 4,568 5,573
Margins (%)
Total assets 5,756 6,962 7,756 8,715 9,820
Gross 84.2 73.0 80.0 81.0 82.0
EBITDA 38.7 32.4 39.3 40.9 41.5 Cashflow
EBIT 32.8 26.6 35.3 36.1 36.4 YE Mar (Rs mn) FY20A FY21A FY22E FY23E FY24E
Adjusted PAT 31.2 23.5 31.5 32.7 33.0 Profit Before Tax 1,046 640 1,265 1,563 1,802
Returns (%) Depreciation & Amortisation 160 122 118 171 207
ROE 15.7 8.2 13.4 14.8 15.1 Net Interest 6 3 15 15 15
ROCE 15.7 8.2 13.6 14.9 15.2 Net Change – WC (44) 330 (50) (69) (43)
ROIC 12.6 6.9 10.8 12.7 14.3 Direct taxes (276) (191) (318) (393) (453)
Turnover (days) Net cash from operations 732 833 814 1,000 1,201
Gross block turnover ratio (x) 1.2 0.9 0.8 0.9 1.0 Capital expenditure (359) (463) (494) (400) (300)
Debtors 62 71 53 54 53 Acquisitions, net 0 0 0 0 0
Inventory 442 272 203 210 213 Investments (122) (343) 0 0 0
Creditors 107 80 102 113 109 Others 35 19 217 286 327
Net working capital 445 569 467 467 497 Net cash from investing (445) (786) (277) (114) 27
Solvency (x) FCF 287 46 537 886 1,228
Net debt-equity 0.0 0.0 (0.1) (0.1) (0.2) Issue of share capital 0 0 0 0 0
Interest coverage ratio 181.9 269.6 78.8 97.5 113.2 Increase/(decrease) in debt 40 (38) 0 0 0
Net debt/EBITDA 0.0 0.0 (0.3) (0.7) (1.2) Dividend paid (321) 0 (171) (212) (244)
Per share (Rs) Interest paid (5) (2) (15) (15) (15)
Adjusted EPS 7.5 4.4 8.4 10.4 11.9 Others 0 0 62 0 0
BVPS 48.2 58.9 65.9 74.4 84.2 Net cash from financing (287) (41) (124) (227) (259)
CEPS 8.9 5.5 9.4 11.9 13.8 Net change in Cash 0 5 412 660 969
DPS 2.4 0.0 1.3 1.6 1.8 Source: Company, Centrum Broking
Dividend payout (%) 31.6 0.0 15.0 15.0 15.0
Valuation (x)
P/E 57.8 98.2 51.4 41.6 36.1
P/BV 8.9 7.3 6.5 5.8 5.1
EV/EBITDA 46.6 71.1 40.9 32.6 27.5
Dividend yield (%) 0.5 0.0 0.3 0.4 0.4
Source: Company, Centrum Broking

Centrum Institutional Research 9

La Opala RG 05 January, 2022

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This report/document has been prepared by Centrum, based upon information available to the public and sources, believed to be reliable. No representation
or warranty, express or implied is made that it is accurate or complete. Centrum has reviewed the report and, in so far as it includes current or historical
information, it is believed to be reliable, although its accuracy and completeness cannot be guaranteed. The opinions expressed in this document/material
are subject to change without notice and have no obligation to tell you when opinions or information in this report change.
This report or recommendations or information contained herein do/does not constitute or purport to constitute investment advice in publicly accessible
media and should not be reproduced, transmitted or published by the recipient. The report is for the use and consumption of the recipient only. This publication
may not be distributed to the public used by the public media without the express written consent of Centrum. This report or any portion hereof may not be
printed, sold or distributed without the written consent of Centrum.
The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform
themselves about, and observe, any such restrictions. Neither Centrum nor its directors, employees, agents or representatives shall be liable for any damages
whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the
information.
This document does not constitute an offer or invitation to subscribe for or purchase or deal in any securities and neither this document nor anything contained
herein shall form the basis of any contract or commitment whatsoever. This document is strictly confidential and is being furnished to you solely for your
information, may not be distributed to the press or other media and may not be reproduced or redistributed to any other person. The distribution of this
report in other jurisdictions may be restricted by law and persons into whose possession this report comes should inform themselves about, and observe any
such restrictions. By accepting this report, you agree to be bound by the fore going limitations. No representation is made that this report is accurate or
complete.

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La Opala RG 05 January, 2022

The opinions and projections expressed herein are entirely those of the author and are given as part of the normal research activity of Centrum Broking and
are given as of this date and are subject to change without notice. Any opinion estimate or projection herein constitutes a view as of the date of this report
and there can be no assurance that future results or events will be consistent with any such opinions, estimate or projection.
This document has not been prepared by or in conjunction with or on behalf of or at the instigation of, or by arrangement with the company or any of its
directors or any other person. Information in this document must not be relied upon as having been authorized or approved by the company or its directors
or any other person. Any opinions and projections contained herein are entirely those of the authors. None of the company or its directors or any other person
accepts any liability whatsoever for any loss arising from any use of this document or its contents or otherwise arising in connection therewith.
Centrum and its affiliates have not managed or co-managed a public offering for the subject company in the preceding twelve months. Centrum and affiliates
have not received compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for
service in respect of public offerings, corporate finance, debt restructuring, investment banking or other advisory services in a merger/acquisition or some
other sort of specific transaction.
As per the declarations given by him, Mr. Akhil Parekh, research analyst and and/or any of their family members do not serve as an officer, director or any way
connected to the company/companies mentioned in this report. Further, as declared by them, they are not received any compensation from the above
companies in the preceding twelve months. They do not hold any shares by them or through their relatives or in case if holds the shares then will not to do
any transactions in the said scrip for 30 days from the date of release such report. Our entire research professionals are our employees and are paid a salary.
They do not have any other material conflict of interest of the research analyst or member of which the research analyst knows of has reason to know at the
time of publication of the research report or at the time of the public appearance.
While we would endeavour to update the information herein on a reasonable basis, Centrum, its associated companies, their directors and employees are
under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent Centrum from
doing so.
Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable
regulations and/or Centrum policies, in circumstances where Centrum is acting in an advisory capacity to this company, or any certain other circumstances.
This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state,
country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject Centrum
Broking Limited or its group companies to any registration or licensing requirement within such jurisdiction. Specifically, this document does not constitute an
offer to or solicitation to any U.S. person for the purchase or sale of any financial instrument or as an official confirmation of any transaction to any U.S. person
unless otherwise stated, this message should not be construed as official confirmation of any transaction. No part of this document may be distributed in
Canada or used by private customers in United Kingdom. The information contained herein is not intended for publication or distribution or circulation in any
manner whatsoever and any unauthorized reading, dissemination, distribution or copying of this communication is prohibited unless otherwise expressly
authorized. Please ensure that you have read “Risk Disclosure Document for Capital Market and Derivatives Segments” as prescribed by Securities and
Exchange Board of India before investing in Indian Securities Market.

Ratings definitions
Our ratings denote the following 12-month forecast returns:
Buy – The stock is expected to return above 15%.
Add – The stock is expected to return 5-15%.
Reduce – The stock is expected to deliver -5-+5% returns.
Sell – The stock is expected to deliver <-5% returns.
LA OPALA

Source: Bloomberg

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La Opala RG 05 January, 2022

Disclosure of Interest Statement

1 Business activities of Centrum Broking Centrum Broking Limited (hereinafter referred to as “CBL”) is a registered member of NSE (Cash, F&O and Currency Derivatives
Limited (CBL) Segments), MCX-SX (Currency Derivatives Segment) and BSE (Cash segment), Depository Participant of CDSL and a SEBI registered
Portfolio Manager.
2 Details of Disciplinary History of CBL CBL has not been debarred/ suspended by SEBI or any other regulatory authority from accessing /dealing in securities market.

3 Registration status of CBL: CBL is registered with SEBI as a Research Analyst (SEBI Registration No. INH000001469)

LA OPALA

4 Whether Research analyst’s or relatives’ have any financial interest in the subject company and nature of such financial interest No

5 Whether Research analyst or relatives have actual / beneficial ownership of 1% or more in securities of the subject company at the end of the month
No
immediately preceding the date of publication of the document.
6 Whether the research analyst or his relatives has any other material conflict of interest No

7 Whether research analyst has received any compensation from the subject company in the past 12 months and nature of products / services for which
No
such compensation is received
8 Whether the Research Analyst has received any compensation or any other benefits from the subject company or third party in connection with the
No
research report
9 Whether Research Analysts has served as an officer, director or employee of the subject company No

10 Whether the Research Analyst has been engaged in market making activity of the subject company. No

11 Whether it or its associates have managed or co-managed public offering of securities for the subject company in the past twelve months; No

Whether it or its associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company
12 No
in the past twelve months;
Whether it or its associates have received any compensation for products or services other than investment banking or merchant banking or brokerage
13 No
services from the subject company in the past twelve months;

Member (NSE and BSE). Member MSEI (Inactive)

Single SEBI Regn No.: INZ000205331

Depository Participant (DP)

CDSL DP ID: 120 – 12200
SEBI REGD NO.: CDSL: IN-DP-CDSL-661-2012

PORTFOLIO MANAGER

SEBI REGN NO.: INP000004383

Research Analyst
SEBI Registration No. INH000001469

Mutual Fund Distributor

AMFI REGN No. ARN- 147569

Website: www.centrum.co.in
Investor Grievance Email ID: investor.grievances@centrum.co.in

Compliance Officer Details:

Shivshankar Kamath
(022) 4215 9000/9106; Email ID: compliance@centrum.co.in

Centrum Broking Ltd. (CIN :U67120MH1994PLC078125)

Corporate Office & Correspondence Address
Registered Office Address
Centrum House
Bombay Mutual Building,
6th Floor, CST Road, Near Vidya Nagari Marg, Kalina, Santacruz (E), Mumbai
2nd Floor, Dr. D. N. Road,
400 098.
Fort, Mumbai - 400 001
Tel: (022) 4215 9000 Fax: +91 22 4215 9344

Centrum Institutional Research 12