La Opala RG Limited has informed the Exchange about Credit Rating
LAOPALA · price
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Awaiting price reaction for this filing.
CARE Ratings has reaffirmed the credit ratings of La Opala RG's bank facilities at CARE AA (Stable) for long-term and CARE A1+ for short-term. Total rated facilities amount to Rs. 13 crore (Rs. 5 crore LT cash credit, Rs. 5 crore LT/ST facility, Rs. 3 crore ST bank guarantee). The rating action reflects the company's strong market position in the domestic opal-ware segment, healthy operating margins of around 33-38%, negligible debt (gearing of just 0.01x), and strong liquidity with Rs. 468 crore in liquid investments. CARE noted a ~9% revenue decline in FY25 to Rs. 331.86 crore due to competition and dealer rationalisation, though profit after tax remained healthy at Rs. 96.59 crore. The outlook remains Stable, indicating expected continuation of the strong financial risk profile.
This is a positive signal for shareholders — the reaffirmation of the high investment-grade AA rating confirms the company's strong financial health, very low debt levels, and robust liquidity position. Despite some top-line pressure from competition, the company's comfortable capital structure and healthy cash flows continue to support its creditworthiness.