Why opal glass maker La Opala RG shares soared 13% in trade today? Details

The promoters of the company have purchased 65,000 equity shares representing 0.06 per cent stake of the company via open market between February 18, 2025, and February 19, 2025

Shares of La Opala RG soared 13 per cent to Rs 235.30 on the BSE in Friday’s intra-day trade after its promoters acquired 65,000 shares of the company via the open market after the company's stock price corrected sharply in the past one month.

 

At 09:40 am, the market price of the smallcap company was trading 11 per cent higher at Rs 230, as compared to the 0.12 per cent decline in the BSE Sensex. 

 

La Opala RG, after market hours in an exchange filing on Thursday, informed that the promoters of the company have purchased 65,000 equity shares representing 0.06 per cent stake of the company via the open market. The promoters had purchased these shares between February 18, 2025 and February 19, 2025.

 

The stock had hit a 52-week low of Rs 190.55 on February 18, 2025. Prior to that, the market price of La Opala RG had tanked 39 per cent in the past one month from the level of Rs 310 on the BSE. 

 

In the October to December 2024 quarter (Q3FY25), La Opala RG reported a 47.5 per cent year-on-year (YoY) decline in its profit after tax (PAT) at Rs 23.17 crore. The company had posted a PAT of Rs 44.16 crore in Q3FY24. Revenue from operations went down 14.8 per cent YoY to Rs 91.3 crore from Rs 107.1 crore in the year ago quarter.

 

Earnings before interest, tax, depreciation and amortisation (Ebitda) margin contracted 984 basis points (bps) to 28.08 per cent in Q3FY25, from 37.92 per cent in Q3FY24.

 

La Opala RG specialises in producing opal glass tableware and 24 per cent lead crystalware products, making it the largest opal glassware brand in India.

 

The company will continue to focus on growth coming out of the opalware market, considering that the organised segment of the sector is still extensively underpenetrated and valued at only around Rs 1,000 crore. Its objective will not be to drop prices and win short-term market share; the objective will be to reinforce the brand, widen the market and command premium realisations.

 

La Opala RG commissioned the largest opalware manufacturing capacity in the country. The company suspended opalware manufacturing operations in its legacy Madhupur plant. All production will now be driven from the Sitargunj facility, marked by the most modern manufacturing infrastructure cum equipment. This has already translated into a high operating efficiency and lower manufacturing costs, the company said in its FY24 annual report.

 

The management had expected cost savings and efficiency improvements are projected to enhance financial outcomes beginning Q3FY25.