In this post we will go through L T Foods Ltd share, their fundamentals, future view, company’s outlook, their financials, shareholding patterns etc , Based on company’s fundamentals and technical analysis, we will try to predict L T Foods share price target 2023,2024,2025 and 2030.
About L T Foods
LT Foods Limited was 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.
It is also engaged in research and development to add value to rice and rice food products. The Company’s rice product portfolio comprises brown rice, white rice, steamed rice, parboiled rice, organic rice, quick cooking rice, value added rice and flavored rice in the ready to cook segment.
L T Foods Share Price Target 2023: Technical Analysis
L T Foods Share Price Target 2023
| Year | L T Foods Share Price in 2023 |
| 2023 | ₹130 to ₹150 |
Company Info
| Company Name | L T Foods Ltd |
| Company Website | ltgroup.in |
| Chairman and Managing Director | Mr. Vijay Kumar Arora |
| Market Cap (Cr.) | ₹ 3,750 |
| 52 W High / Low | ₹ 136 / 58.4 |
| Stock P/E | 11.6 |
| Book Value | ₹68.7 |
| P/B (Price to Book Value) | 1.71 |
| Face Value | ₹ 1.00 |
| ROCE | 14.8 % |
| ROE | 15.6 % |
| Dividend Yield | 0.85 % |
Business Overview:
LT Foods is into consumer food business for the last 70 years, that specialises in Basmati and other speciality rice, organic food and ingredient business, and convenience and health segment.
Basmati and Other Specialty Rice Segment
- LT Foods is a market leader with a diverse variety of Specialty Rice and Rice food products in India and across geographies.
- The Basmati and Other Specialty Rice segment is one of the key businesses of LT Foods and currently contributes 79% to the overall revenue of the business and has recorded a 3 year CAGR of 10%.
- This business segment has a presence in more than 60 countries under the flagship brands Daawat, Royal and Regional brands like Heritage, 817 Elephant, Gold Seal Indus Valley, Rozana and Devaaya.
- Apart from basmati rice, Daawat has also introduced regional rice such as Daawat Kolam, Daawat Sona Masoori, Daawat Govind Bhog and so on. This segment is also gaining strength on a year-on-year basis.
Organic Food and Ingredient Segment
- LT Foods started its organic subsidiary, Nature Bio Foods Limited (NBF), in 1999, offering authentic organic food ingredients to consumers in the US and Europe contributing 11% of the Indian organic food export industry during the year.
- The Company provides a range of organic products, including rice, pulses, beans and ancient grains sourced from Asia.
- The organic segment accounts for 13% of total revenue, valued at INR 705 crores and a 3-year CAGR of 39%. More than 94,000 hectares of certified organic land and 75,000+ farmer families are associated with the Company.
- This Segment have 19% YoY Growth, 39% 3 Year CAGR Growth, 70% Share of Organic Rice exports from India to the World and 85% Share of Organic Flour Exports from India to the World.
Convenience and Health Segment
Their first major success was “Daawat” Quick Cooking Brown rice on the health platform. It was our first solution in this direction, which is enjoying leadership position since its launch.
On the convenience platform, the Company launched various new and innovative products:
- ‘Kari Kari’, a Rice-Based Snack in joint venture with Japanese conglomerate Kameda Seika
- Ready-to-Heat (Microwave Heat & Eat) rice with unique blend of spices and seasonings in the US Market under ‘Royal’ brand
- Daawat Cuppa Rice which are delicious Ready-to-eat rice meals
- Daawat Biryani Kits that enables consumers to make authentic biryani under 30 min at home
Convenience and Health Food segment contributes 2% of the overall revenue, and has grown at a 3-year CAGR of 59%.
This year, this segment crossed a milestone of INR 100 crore and has reached to INR 121 crore with a growth rate of 62% on Y-o-Y basis.
Key Highlights:
- Company flagship brand Daawat have 25% market share in India and leadership position in Reunion Island, Israel, Far East, among others.
- Company second brand Royal have 50% market share in North America as well as other regional brands such as Devaaya, Rozana, Gold Seal Indus Valley, 817 Elephant, and EcoLife.
- The Company have presence in more than 60 countries.
- Company have total 2,000+ employees across globe
- The Company has 1,300+ distributors across geographies (1,200 distributors in India and 100+ distributors in international markets).
- The Company is present across more than 1,52,000 retail outlets in India ((37,000 new retails outlets added during the year 2022).
Revenue Geography wise
- LT Foods’ Indian division contributed to 32% of the Company’s overall revenue in FY 2021-22, 11% Y-o-Y growth in India Specialty Rice Business and 29% Y-o-Y growth in India Consumer Business.
- The Basmati and other specialty rice business in India are led by LT Foods’ flagship brands, Daawat, Heritage, Devaaya, Chef Secretz, Rozana, among others.
- International business contributes 68% to the overall revenue driven by growth across our flagship brands Daawat, Royal and other regional brands—817 Elephant, Rozana, Gold Seal Indus Valley and Devaaya.
- The European Market accounted for 20%, Middle East constitutes 6% and the rest of World segment contributes 8% to the overall revenue.
- Royal is the leading brand of Basmati rice in the US. The Royal business increased by almost 50% throughout this time. With a 42.4% market share and a growth of 13% on a year-on-year basis.
Industry Overview:
Rice and Specialty Rice Segment
- In 2021, the top five rice exporting nations, India, Thailand, Pakistan, Vietnam, and the United States, accounted for over three-quarters (74.2%) of worldwide rice export value .
- The Global Rice market size is expected to grow at a compound annual growth rate of 2.2% from 2022 to 2028 to reach USD 334.24 billion by 2028.
- In the recent decade, India has become the world’s largest rice exporter, with export revenues of $8.8 billion in FY 2020-21 and $9.6 billion in FY 2021- 22.
- According to DGCIS data, India exported rice to more than 150 nations in FY 2021–22
- In FY 2021–2022, India exported 39.47 LMT of Basmati valued at INR 26,415.16 crore ($3.47 billion).
- In India, the states of J&K, Himachal Pradesh, Punjab, Haryana, Delhi, Uttarakhand and western Uttar Pradesh produce the majority of the country’s basmati rice.
Organic Foods Segment
The organic food business in India is projected to rise at a CAGR of around 20.5% during the forecast period between 2021 and 2026, reaching a value of over USD 2,601 million by 2026.
Convenience and Health Segment
Convenience and Health food comprises ready-to-eat food, packaged beverages, prepared mixes, canned products and shelf staple products.
During the forecast period of 2022– 2027, it is expected that the global market for ready-to-eat food will grow at a CAGR of 4.89%.
L T Foods FINANCIAL PERFORMANCE REVIEW
- Form last few quarters company’s top line and bottom line have improved.
- From last two quarters company have generated INR 95 crore of PAT (Profit after tax) highest ever.
- On TTM basis Company delivered highest ever profit (PAT) of INR 343 crore.
- Company continuously maintaining their operating margin of 10-11%.
- A robust improvement in cost of borrowing and improved interest coverage ratio from 5.6 times to 7.2 times, that led to the credit rating improving from ‘CRISIL A’ to ‘CRISIL A – Positive.’
Pros:
- Company has delivered good profit growth of 20.0% CAGR over last 5 years
- Company have reduced their debt, their debt to equity ratio is 0.63.
- FIIS have increased shareholding from 1.38% (March 2022) to 4.01% (Sept 2022).
Cons:
- The company has delivered a poor sales growth of 10.8% over past five years.
Credit Ratings for L T Foods
The long term credit rating of the Company is CRISIL A Positive and short term credit rating is CRISIL A1.
L T Foods Share Price Target 2024-2025
L T Foods Share Price Target 2024
| Year | L T Foods Share Price in 2024 |
| 2024 | ₹165 to ₹187 |
L T Foods Share Price Target 2025
| Year | L T Foods Share Price in 2025 |
| 2025 | ₹ 210 to ₹245 |
L T Foods Share Analysis
L T Foods SUBSIDIARY/ASSOCIATE COMPANIES:
(As on March 31, 2022)
| Name of the Company | Date of Acquisition |
| LTO North America, Inc. USA (Wholly Owned Subsidiary | 02.11.2007 |
| LT Foods Americas, Inc. (Fellow Subsidiary) | 22.09.2010 |
| LT Foods USA LLC (Wholly Owned Subsidiary) | 21.10.2007 |
| LT Foods Middle East DMCC (Fellow Subsidiary) | 17.04.2013 |
| Sona Global Ltd. UAE (Wholly Owned Subsidiary | 19.03.2005 |
| Daawat Foods Limited (Subsidiary | 04.05.2005 |
| Nature Bio Foods Limited (Wholly Owned Subsidiary) | 25.11.2005 |
| LT Agri Services Private Limited (Fellow Subsidiary) | 27.04.2009 |
| Raghunath Agro Industries Private Limited | 20.07.2015 |
| LT Foods International Limited | 24.06.2016 |
| LT Foods Europe BV | 06.09.2016 |
| Deva Singh Sham Singh Export Private Limited | 12.04.2017 |
| Nature Bio-Foods B.V | 06.11.2017 |
| Ecopure Specialities Limited | 01.11.2017 |
| Nature Bio Foods Inc | 01.08.2020 |
Apart from it L T Foods have four Associates and Joint Ventures, these are Raghuvesh Agri Foods Private Limited (Associate), Raghuvesh Warehousing Private Limited (Associate), Infrastructure Pvt. Ltd. (Associate) and Daawat Kameda India Private Limited (Joint Venture).
L T Foods Shareholding Patterns:
| Holdings | Year 2022(Sept)% |
| Promoters | 56.82 |
| FIIS | 4.01 |
| DIIS | 3.28 |
| Public | 35.91 |
L T Foods Share Price Target 2030:
| Year | L T Foods Share Price in 2030 |
| 2030 | ₹550 to ₹615 |
Conclusion:
Overall, L T Foods is a good company, initially debt was a major concerned for the company, but now company is paying their debt, and from last few quarters company has delivered good results, over the time there flagship brand Dawat got immense popularity in India as well as outside. Therefore in coming year company could provide a great value to there investors.
Here is the end of the post L T Foods share price target 2023,2024, 2025-2030, hope we provided some value to you, please write your suggestion below in comment section.
Source: L T Foods Annual Report and Internet
Disclaimer: On this page all the mentioned entries are based on the date the post was written, these could be change in future.
Nirmal is a NISM Certified Derivative Trader & the Founder of InvestandEarn.net (Financial Blog). He entered the world of Equity research to explore his interests in financial markets having 5+ Years of Experience in Share Market Trading & Investing. Nirmal frequently writes about Share Market Trading & Investment and publishes his personal view on the market. Drop him a mail at nirmal.jaysval@investandearn.net.
