LT Foods Stock Research

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LT Foods Detail

LT Foods is in portfolio of Dolly Khanna. He is one of the top investors in India. The company belongs to Food Processing sector.

As per the Company website it is a leading rice brand in India and leading specialty food brand in US. LT food brands and products are sold in more than 60 countries across Asia, North and South America, Europe, Australia and Africa.

Below are different brands from the Company. As of this writing the brand contribute 70% of revenue.

  • Daawat
    • Leading Basmati rice brand in India and US
  • Royal
    • Different flavors of Basmati rice
    • Flour is also one product under this brand
  • Ecolife
    • Under this brand Company sells Amaranth, Red Quinoa, Golden Quinoa, Roasted Freekeh, Khorasan wheat
    • Beans, Pulses and Rice

The Company has registered office in India, US and Middle East. Below are some key features about the Company

  • Sells over 300,000 packaged metric tons of Basmati rice
  • In India Company brands are present in more than 100,000 retail outlets
  • It supplies to over 4,000 food service outlets in India
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I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

LT Foods Stock Performance

The stock got listed in year 2006 at listing price of 5 INR. Over the next one decade there was not significant movement in price. The stock gave around 2 times return (that is double your money). This was in line with what a investor will get from secured deposits like Banks.

Majority of price action came in year 2017 and it touched 100 mark. Since then it has corrected significantly and is now trading close to 25 mark. The dividend yield of the Company is close to .5% at current market price.

I like steady price performance by any Stock. People should not jump to buy the stock. They should wait for correction as stock has corrected significantly from top.

LT Foods My Opinion

LT Foods is a Food Processing Company. The Company is mainly in business of Rice specially Basmati rice. It is also trying to diversify operations and get into business of Pulses and other grains.

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It has setup offices in US and Middle East which are major consumer of Basmati Rice. Basmati rice being part of food habit has good market demand. It is considered a luxury food item for middle class in India. The sector is good as demand for it will continue to be strong in near future.

The only challenge is Monsoon dependence of Agriculture in India. Apart from this risk the sector is pretty much stable. Consumption specially those related to main food habits of people are stable sectors. The only thing you need to analyze it Company performance and Management Pedigree.

There are few Companies listed in the sector. If you are interested in this sector then you should compare the stocks and select the one which meets your requirement. As of now I have not invested in these stocks but is comparing stocks from the sector.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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