La Opala RG Limited

LAOPALA.BO•furnishings-fixtures-appliances

Current Price

257.10INR

per share

Fair Value

245.32INR

Undervalued

0.9%

Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 13.61%, higher than industry average of 5.02%.

Growth Trajectory

Profitability

In the growth phase company makes 36.36% profit on every dollar of sales, higher than industry average of 7.36%.

Profitability Trajectory

Risk Profile

Investors expect at least 6.55% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)

Return on Invested Capital (%)

Financial Health Overview

Enterprise Value

22.22B INR

Equity Value

27.23B INR

FCF Yield

58.19%

Average ROIC

36.18%

Cost of Capital

7.39%

P/E Ratio

24.00x

Financial Metric	Most Recent 12 months (INR)	Previous Year (INR)
Revenues	3.17B INR	3.63B INR
Operating Income or EBIT	1.34B INR	1.53B INR
Interest Expense	8.23M INR	11.84M INR
Book Value Of Equity	8.24B INR	8.52B INR
Book Value Of Debt	108.22M INR	92.85M INR
Cash and Marketable Securities	5.11B INR	4.76B INR
Number of Shares Outstanding	111M	--
Minority interests	0 INR	0 INR
Current Stock Price	257.10 INR	--
Effective Tax Rate	16.00%	--
Marginal Tax Rate	30.00%	--

Performance vs Industry

Revenue Growth

-17.75%

-12.73%Company

5.02%Industry

Below Industry

Operating Margin

+34.91%

42.27%Company

7.36%Industry

Above Industry

La Opala RG Limited demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate

4.65%

Cost of Capital

8.88%

Return on Capital

8.88%

Reinvestment Rate

52.36%

Terminal value represents 55% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

Component	Value	Type
Present Value (Terminal Value)	12.22B INR	Add
Present Value (Cash Flow Over Next 10 Years)	10.00B INR	Add
Value of Operating Assets	22.22B INR	Sub-total
Debt	108.21M INR	Subtract
Minority Interests	—	Subtract
Cash	5.10B INR	Add
Value of Equity	27.23B INR	Sub-total
Number of Shares	111.00M shares	Divisor
Estimated Value per Share (Fair Value)	245.32 INR	Total
Current Market Price	243.00 INR	Reference

Financial Projections

Total FCF Present Value

10.00B INR

Avg Revenue Growth

9.82%

Avg Operating Margin

35.04%

Avg ROIC

36.18%

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal Year
REVENUE
Revenue	3.72B INR	4.23B INR	4.80B INR	5.46B INR	6.20B INR	6.93B INR	7.63B INR	8.26B INR	8.79B INR	9.20B INR	9.62B INR
Growth Rate	17.64%	13.60%	13.60%	13.60%	13.60%	11.81%	10.02%	8.23%	6.44%	4.65%	4.65%
PROFITABILITY
Operating Income	1.57B INR	1.62B INR	1.74B INR	1.87B INR	2.01B INR	2.24B INR	2.47B INR	2.67B INR	2.85B INR	2.98B INR	3.12B INR
Operating Margin	42.27%	38.32%	36.35%	34.38%	32.41%	32.41%	32.41%	32.41%	32.41%	32.41%	32.41%
EBIT (1-tax)	1.32B INR	1.36B INR	1.46B INR	1.57B INR	1.68B INR	1.82B INR	1.93B INR	2.02B INR	2.07B INR	2.08B INR	2.18B INR
CASH FLOW
Reinvestment	211.54M INR	240.33M INR	273.04M INR	310.20M INR	306.01M INR	354.97M INR	320.75M INR	271.61M INR	208.68M INR	218.39M INR	1.14B INR
Free Cash Flow	1.11B INR	1.12B INR	1.19B INR	1.26B INR	1.38B INR	1.47B INR	1.61B INR	1.75B INR	1.86B INR	1.86B INR	1.04B INR
Terminal Value	--	--	--	--	--	--	--	--	--	--	24.60B INR
Present Value	1.04B INR	988.10M INR	987.82M INR	983.16M INR	1.00B INR	1.00B INR	1.02B INR	1.02B INR	1.00B INR	929.03M INR	—
EFFICIENCY
ROIC	40.78%	39.43%	39.73%	39.76%	39.49%	39.83%	39.27%	38.49%	37.51%	36.38%	8.88%
Cost of Capital	6.54%	6.54%	6.54%	6.54%	6.54%	7.01%	7.48%	7.94%	8.41%	8.88%	8.88%
Sales/Capital	2.39x	2.39x	2.39x	2.39x	2.39x	1.95x	1.95x	1.95x	1.95x	1.95x	—

Profitability & Efficiency

Operating Margin (%)

ROIC (%)

Value Creation Analysis

ROIC (%)

Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)

Reinvestment (₹B)