Daawat – The famous ‘basmati rice’ brand is a household name in India. The strong brand created by LT Foods over the period has now added a substantial economic Moat to the company.
Incorporated in the 1980’s. It is primarily engaged in the business of milling, processing and marketing of branded and non-branded basmati rice and manufacturing of rice food products in the domestic and overseas market.
Revenue Mix H1FY24
Basmati & Other Specialty Rice – 84%[5]
Organic Food & Ingredient – 9%[6]
Convenience & Health – 2%[7]
Others – 5%
Geographical Split H1FY24
USA – 41%
India – 29%
Europe – 17%
Middle East – 6%
Rest of the World – 7% [4]
Company exports to 78 countries.
Also Check: Analysis of LT Foods Stock in 20 min. video! Click Below
Fundamentals: Looks promising
The key financial numbers of the stocks shows its long term positive outlook. Have a look below.
- Market Cap₹ 7,506 Cr.
- Stock P/E14.5
- Dividend Yield0.47 %
- ROCE17.1 %
- ROE16.8 %
- Dividend Payout8.63 %
- Debt to equity0.3
Technical Analysis
The chart of LT Foods clearly shows a breakout on bullish side with 50 day and 200 day moving averages crossing over. The ‘up’ trend is well supported by rising volume. Confirming the trend, both MACD and RSI Indicators are showing rising divergence indicating a continuous bull run for the stock in mid term.
Summing up
In summary, LT Foods appears to be a fundamentally sound company with stable financials, modest valuations, and a history of growth. It will be interesting to see how it uses its strong brand power to rise above competitors such as KRBL & Misthann Foods.
