Ashish Kacholia Portfolio: This multibagger stock hits 11-month high today, gives 3x returns in 3 years – Should you Buy?

Ashish Kacholia, Multibagger Stock: Ace investor Ashish Kacholia-backed mutlibagger stock – La Opala RG has touched 11-month high to Rs 409 per share, after surging by over 7 per cent on the NSE on Wednesday. The stock is inching towards its all-time high level of Rs 456.5 per share, hit on December 27, 2021.

Ace Investor’s Favourtie

La Opala RG is one of the favourite stocks of Ashish Kacholia as the renowned investor has been gradually increasing stakes in the company for the last four quarters. As per September shareholding pattern, Kacholia picked around 2 lakh additional shares or 0.2 per cent stakes in the company.

He has 17,67,433 equity shares or 1.59 per cent stakes in La Opala RG, as per the latest shareholding pattern against 15,79,933 shares or 1.42 per cent stakes in June quarter. Kacholia publicly holds 42 stocks with a net worth of over Rs 1,888.7 crore as of November 30, according to trendlyne.com.

Multibagger Returns

The stock in the last three years has jumped nearly 3 times or 188 per cent, given multibagger returns. To put in a perspective, if an investor would have picked up Rs 1 lakh worth shares in November 2019, he/she would have earned around Rs 3 lakh as per current market price.

 In the last six months, the counter has jumped more than 53 per cent as compared to 13 per cent rise in the Nifty50 during same period. While it has gained almost 22 per cent in the last one year as against over 9 per cent surge in the benchmark index.

Q2 Performance

La Opala RG delivered strong growth for sixth consecutive quarter, wherein quarterly revenue run-rate has gone up consistently, Abhishek Navalgund, Research Analyst, Nirmal Bang said.

The research analyst added that while Q2 is generally a lean quarter, additional capacity and a wider distribution network have led to a strong topline growth without compromising margin.

“Our interaction with the management indicates that the demand momentum continues even in Q2FY23 and in fact 2H is generally better than 1H on account of festive seasons and marriages.”

Brokerage View

The analyst at Nirmal bang believes that there is a long runway for distribution-led growth in this category and higher marketing intensity will automatically drive penetration and category growth; total revenue potential from the current opalware capacity is Rs 5 billion, as per management.

The brokerage maintains BUY on La Opala RG with an unchanged target price of Rs 500 per share, indicating an upside of around 22 per cent from the current market price. Overall, we are building in Revenue/EBITDA/APAT CAGR of 26/26/27 over FY22-FY25E, respectively, the analyst said.

Incorporated in 1988, La Opala RG is a leading glass tableware manufacturer. Founder and chairman Sushil Jhunjhunwala pioneered the concept of Opal Glass in India, and in the year 1988 launched La Opala. It has presence not only in India, but in over 30 countries across the globe.