RESPONSE TO READER'S QUERY: @NR 16/9/11; LA OPALA

On the TECHNICALS the scrip shows a positive bias. The first resistance on the upside is at 119 levels followed by 128. On the downside, the first support is at 102 followd by a strong support at 82 levels. On the FUNDAMENTALS, the Scrip seems to have a lot going for it; robust results, premium presence in growing market segment, aspirational value, lifestyle product as well as reasonable Brand pull. The main negatives currently are that it has already run up a lot and has a fairly large Debt on its Books for a Company of its size. Expecting to clock a 15%-20% Annual PAT Growth conservative over the next couple of years, implies that it could do an EPS FY12E of 12 approx. thus putting it at 9.3x FY12E at CMP 112.

Overall, I feel that making room for the run up that has already happened it would be reasonable to enter the Stock on all dips in a staggered manner and hold for the long term