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Promoters of La Opala buy shares worth ₹51 million as the stock hits a 52-week low

Published 2 years ago on Aug 28, 2019 2 minutes Read

A market leader in the dinner ware segment with strong brand recall and distribution network — La Opala — too has fallen prey to rapidly deteriorating consumer sentiment. In Q1fy20, the impact of weak discretionary spending was clearly visible on the company’s sales and operating profitability. While sales grew dismal 5% to Rs.580 million, Ebitda was flat at Rs.240 million. Even in Q4fy19, the signs of an impending slowdown were flashing. Now, the pressure is clearly reflecting in the stock price, which is down 40% over the past year. In a bargain hunting move, promoter entity Genesis Exports, in which Sushil Jhunjhunwala is one of the directors, bought shares worth Rs.51 million earlier in August, just as the stock hurtled to a 52-week low. Overall in 2019, the promoters have acquired shares worth Rs.102 million. As of June 2019, total promoter stake stood at 65.33% compared to 65.02% at the end of December 2018. After the latest acquisition, Genesis Exports’ holding has risen from 45.99% to 46.31%.