LT Foods is an Indian multinational company that specializes in milling and marketing basmati rice and other food products. It is headquartered in Gurugram, Haryana, India. The company was founded in 1990 and has since grown to become one of the world’s leading basmati rice exporters.
LT Foods Overview
Founded: 1990
Headquarters: Gurugram, Haryana, India
Industry: Milling and marketing of basmati rice and other food products
Key Facts:
- World’s leading basmati rice exporter: Owns popular brands like Royal, Daawat, Kohinoor, and Sundrop.
- Products sold in 65+ countries: Strong presence in India, Middle East, US, expanding in Europe and Africa.
- Sustainable practices: Committed to sourcing from sustainable farms and using eco-friendly operations.
- Brand focus: Shifted from bulk rice to branded products, currently over 70% of revenue.
- Social responsibility: Supports farmers and communities through education, economic assistance, and fair prices.
LT Foods Products
LT Foods, a leading name in basmati rice and other food products, offers a diverse range of items to satisfy your culinary cravings. From their flagship aromatic basmati rice to flavorful pulses, cooking oils, and spices, LT Foods has something for every kitchen.
The Star of the Show: Basmati Rice
Basmati rice is undoubtedly the heart and soul of LT Foods’ product portfolio. They offer a variety of basmati rice options to cater to different preferences:
- Royal Basmati Rice: The world’s leading brand of basmati rice, known for its long grains, delicate aroma, and fluffy texture.
- Daawat Basmati Rice: A popular choice in India, offering a range of options like aged basmati, long grain, and biryani rice.
- Kohinoor Basmati Rice: A preferred brand in the Middle East, known for its consistent quality and affordability.
- Sundrop Basmati Rice: A budget-friendly option that still delivers the classic basmati flavor and aroma.
Beyond Basmati: Exploring Other Grains and Pulses
LT Foods expands its offerings beyond basmati rice with a selection of other grains and pulses:
- Specialty Rice Varieties: From parboiled rice for faster cooking to organic rice for health-conscious consumers, LT Foods caters to various dietary needs.
- Pulses: A source of protein and fiber, LT Foods offers a variety of dals (lentils) and beans like moong dal, masoor dal, and chickpeas.
Adding Flavor to Your Meals: Cooking Oils and Spices
LT Foods complements its rice and pulses with flavorful cooking oils and spices:
- Cooking Oils: Their Sundrop brand offers a range of cooking oils, including sunflower, canola, and blended oils, suitable for various cooking methods.
- Spices: LT Foods provides a selection of spices like turmeric, cumin, coriander, and chili powder to add an authentic touch to your dishes.
LT Foods Fundamentals
Financials at a Glance:
- Market Capitalization: ₹6,573.50 Crore (as of Feb 22, 2024)
- Revenue Growth:
- 1 Year: 37.84%
- 3 Year: 18.54%
- 5 Year: 12.84%
- Profit Growth:
- 1 Year: 42.82%
- 3 Year: 23.47%
- 5 Year: 30.75%
- Debt: Virtually debt-free
- Current Ratio: 3.30 (indicating strong liquidity)
- Cash Flow Management: CFO/PAT stands at 1.89 (healthy)
- Promoter Holding: 51% (strong control)
LT Foods Revenue and Net Profit
| Financial Year | Revenue (Cr) | % Change Y-o-Y | Net Profit (Cr) | % Change Y-o-Y |
|---|---|---|---|---|
| FY23 | 6,978 | 28.0% | 4,228 | 36.7% |
| FY22 | 54,506 | 14.1% | 3,092 | 15.4% |
| FY21 | 47,752 | 19.5% | 2,673 | 42.0% |
| FY20 | 39,982 | -1.8% | 1,882 | 11.2% |
LT Foods Shareholding Patterns
| Shareholder Category | Percentage Holding |
|---|---|
| Promoters | 51.00% |
| Foreign Institutional Investors (FIIs) | 5.73% |
| Domestic Institutional Investors (DIIs) | 5.13% |
| Mutual Funds | 3.08% |
| Others (Public Shareholding) | 35.06% |
LT Foods Share Price Target for 2025, 2026, 2027, 2028, 2029
| Year | Share Price Target |
|---|---|
| 2025 | ₹275.00 |
| 2026 | ₹350.00 |
| 2027 | ₹425.00 |
| 2028 | ₹500.00 |
| 2029 | ₹575.00 |
LT Foods Share Price Target for 2025
LT Foods Share Price Target for 2025 is 275.
LT Foods Share Price Target for 2026
LT Foods Share Price Target for 2026 is 350.
LT Foods Share Price Target for 2027
LT Foods Share Price Target for 2027 is 425.
LT Foods Share Price Target for 2028
LT Foods Share Price Target for 2028 is 500.
LT Foods Share Price Target for 2029
LT Foods Share Price Target for 2029 is 575.
Read more: Central Bank Of India Share Price Target for 2025, 2026, 2027, 2028, 2029
LT Foods Dividend History
| Date | Ex-Date | Record Date | Dividend Amount (₹) |
|---|---|---|---|
| Aug 10, 2023 | Sep 10, 2023 | Sep 20, 2023 | 0.50 |
| Feb 10, 2023 | Feb 11, 2023 | Feb 20, 2023 | 0.50 |
| Nov 09, 2022 | Nov 10, 2022 | Nov 21, 2022 | 0.50 |
| Feb 09, 2022 | Feb 10, 2022 | Feb 21, 2022 | 0.50 |
| Nov 06, 2021 | Nov 09, 2021 | Nov 20, 2021 | 0.50 |
| Feb 05, 2021 | Feb 08, 2021 | Feb 19, 2021 | 0.50 |
| Nov 06, 2020 | Nov 09, 2020 | Nov 20, 2020 | 0.50 |
Future Outlook of LT Foods
Predicting the future with certainty is impossible, but here’s an analysis of LT Foods’ prospects based on various factors:
Strengths:
- Strong brand portfolio: Renowned brands like Royal, Daawat, and Kohinoor enjoy strong brand recognition and loyalty.
- Healthy financials: Consistent revenue and profit growth, virtually debt-free balance sheet, and strong liquidity.
- Focus on branded and premium products: Shift towards higher-margin segments is improving profitability.
- Expanding market reach: Growing presence in new markets like Europe and Africa offers potential for further growth.
- Sustainable practices: Commitment to sustainability attracts environmentally conscious consumers and investors.
Risks Associated With Investing in LT Foods
While LT Foods exhibits promising potential, there are inherent risks associated with any investment, and LT Foods is no exception. Here’s a breakdown of some key risks to consider before making an investment decision:
Commodity Price Fluctuations:
- Rice Price Volatility: As a basmati rice exporter, LT Foods’ profitability is heavily influenced by the global price of rice. Fluctuations due to weather conditions, government policies, and global demand can significantly impact margins.
- Other Input Cost Fluctuations: Packaging, transportation, and other input costs can also experience fluctuations, impacting profitability if not effectively managed.
Competition:
- Branded Rice Market: LT Foods faces competition from established players like Kohinoor and newer entrants in the branded rice segment. Intense competition can lead to price wars and market share challenges.
- Alternative Rice Varieties: Consumers may opt for cheaper non-basmati rice varieties or substitutes like quinoa, affecting demand for basmati rice.
LT Foods Competitors
LT Foods operates in a competitive landscape, facing challenges from both established players and new entrants in various segments. Here’s a breakdown of their key competitors:
Branded Rice:
- Kohinoor Foods: A major competitor in the Middle East and Indian markets, offering value-priced basmati rice and other rice varieties.
- Emergent Brands: Newer entrants like India Gate Foods and Chakki Fresh are gaining traction in the branded rice segment, offering innovative products and competitive pricing.
- International Players: Companies like Ebro Foods and Riviana Foods offer basmati rice in international markets, competing with LT Foods’ exports.
Bulk Rice:
- Adani Wilmar: A leading player in the Indian rice industry, with a strong presence in bulk rice exports and domestic sales.
- KRBL Limited: Another major player in the Indian rice industry, known for its “India Gate” brand and extensive distribution network.
- International Trading Companies: Several large trading companies like Cargill and Louis Dreyfus Company also participate in the bulk rice trade, competing with LT Foods on price and volume.
Other Food Products:
- ITC: A diversified FMCG giant with a presence in branded spices, pulses, and other food products, competing with LT Foods in various segments.
- Nestle India: A major player in packaged food products, offering various rice-based dishes and ready-to-eat options, potentially competing with LT Foods’ value-added products.
- Regional Players: Numerous regional and local players offer pulses, spices, and other food products, competing with LT Foods on a regional or product-specific level.
Read more: Infibeam Avenues Share Price Target for 2025, 2026, 2027, 2028, 2029
LT Foods FAQs
About the Company:
- What does LT Foods do? LT Foods is a leading exporter of basmati rice and a major player in the branded rice segment, offering various rice varieties, pulses, spices, and cooking oils.
- What are their main brands? Their flagship brands include Royal, Daawat, Kohinoor, and Sundrop.
- Where does LT Foods operate? They have a global presence, with exports to over 60 countries and a strong domestic market in India.
Financials and Performance:
- How is LT Foods performing financially? They have exhibited consistent revenue and profit growth in recent years, with a strong balance sheet and healthy cash flow.
- What is LT Foods’ dividend history? They have paid a consistent dividend of ₹0.50 per share every six months since November 2020.
- What is the current share price of LT Foods? As of February 22, 2024, the share price is ₹190.80.
Investment and Future Outlook:
- What are the risks associated with investing in LT Foods? Commodity price fluctuations, competition, foreign exchange volatility, operational risks, and regulatory changes are key risks to consider.
- What are the potential future growth drivers for LT Foods? Expanding into new markets, focusing on premium products, and growing online sales channels offer promising opportunities.
- What are some resources for further research on LT Foods? You can visit their Investor Relations website, consult analyst reports, or explore financial news websites.
