LT Foods Ltd Stock Analysis

BSE: 532783 | NSE: DAAWAT | Consumer Food | Small Cap

BSE Share Price 06-Dec-2022 18:01
112.15 -1.95 (-1.71%)

DeciZen - Make an Informed Decision on LT Foods

Overall Rating

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

LT Foods Price Chart

P/E Ratio (CD) :
11.14
Market Cap :
3,587.1 Cr.
52-wk low :
58.8
52-wk high :
135.9
Bole Toh?

1. Is LT Foods Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that LT Foods Ltd is a below average quality company.

2. Is LT Foods Ltd undervalued or overvalued?

The key valuation ratios of LT Foods Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is LT Foods Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of LT Foods Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of LT Foods:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
LT Foods Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 8.8%9.5%7.7%9.7%9.3%8.7%7.4%8.7%10.4%10.3%-
Value Creation Index -0.4-0.3-0.5-0.3-0.3-0.4-0.5-0.4-0.3-0.3-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,2082,4742,7352,9733,2453,6143,8904,1354,7425,4276,230
YoY Gr. Rt. %-12.1%10.5%8.7%9.1%11.4%7.7%6.3%14.7%14.5%-
Adj EPS 2.33.6243.73.73.85.58.38.810.1
YoY Gr. Rt. %-56.9%-45.3%103%-7.4%-0.5%1.9%45.1%50.6%6.5%-
BVPS (₹) 11.814.817.420.124.936.841.646.354.962.568.7
Adj Net Profit 60.695.852.710899.8119121176265282322
Cash Flow from Ops. -34.8104929722760.2103477445517-
Debt/CF from Ops. -40.714.5188.25.47.125.716.53.12.92.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 10.5%10.8%11.7%14.5%
Adj EPS 16%18.7%32.5%6.5%
BVPS 20.320.214.513.8
Share Price 33.2% 5.9% 67.9% 70.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 21.427.312.421.516.612.99.712.516.41515.4
Op. Profit Mgn % 10.111.79.712.211.110.510.211.512.11110.3
Net Profit Mgn % 2.94.12.13.63.53.63.44.75.95.55.2
Debt to Equity 4.63.93.732.41.31.310.70.50.1
Working Cap Days 230248255249241246256249228217155
Cash Conv. Cycle 18920520618918017718518316314681

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 15.40%

Sales growth is growing at healthy rate in last 3 years 11.74%

Net Profit is growing at healthy rate in last 3 years 32.52%

Debt to equity has declined versus last 3 years average to 0.53

Sales growth is good in last 4 quarters at 29.28%

No data to display

Latest Financials - LT Foods Ltd.

Standalone Consolidated
TTM EPS (₹) 3.5 10.1
TTM Sales (₹ Cr.) 3,693 6,230
BVPS (₹.) 34.5 68.7
Reserves (₹ Cr.) 1,072 2,165
P/BV 3.25 1.63
PE 32.28 11.14
From the Market
52 Week Low / High (₹) 58.75 / 135.85
All Time Low / High (₹) 2.61 / 135.85
Market Cap (₹ Cr.) 3,587
Equity (₹ Cr.) 32
Face Value (₹) 1
Industry PE 64.2

Management X-Ray of LT Foods :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *2.442.440.790.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of LT Foods

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

LT Foods Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of LT Foods on 06-Dec-2022 18:01 is : 112.2.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 06-Dec-2022 18:01 the market cap of LT Foods stood at ₹ 3,587.1.
The latest PE ratio of LT Foods as of 06-Dec-2022 18:01 is 32.28.
The latest PB ratio of LT Foods as of 06-Dec-2022 18:01 is 3.25
The 52-week high of LT Foods is ₹ 135.8 and the 52-week low is ₹ 58.75.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of LT Foods is ₹ 3,693 ( Cr.) .

About LT Foods Ltd

LT Foods Ltd, incorporated in 1990, as a private limited company is one of the country’s leading processor and exporter of packaged rice foods under the flagship brand “Daawat”. The brand is among the top players in the domestic branded Basmati Rice markets. The ‘Daawat’ brand has been a great success in international markets as well. When it all began about 30 years ago, nobody could have even dreamt that the small trading company that came into being as Lalchand Tirathram Mills could one day be on its way to become a leading global food company. In 1965, Bhikiwind, in a little village in Amritsar (Punjab, India); Raghunath Arora started a small trading company which grew from being a commissioning agent to a partnership firm by 1977, as Lalchand Tirathram Rice Mills.

In 1978 V K Arora joined the family business with his father, with a clear vision of taking his company to a global level. In 1980, the company started exporting Premium Rice. This was the first step towards making this vision a reality.

Simultaneously, the company decided to face the challenges in domestic markets by setting up a modern, state-of-the-art rice factory in Sonepat, Haryana in 1984. Unorganized players with inconsistent quality products were crowding the market. In this scenario, V K Arora felt the need to promote branded and packaged products. In line with this vision, the company started the business of milling, processing and marketing of branded basmati rice and manufacturing of rice food products in the domestic and overseas market.

Daawat came into being in the 1980s, and this resulted in a steep vertical ascent of the company’s growth in the 1990s. Further industry innovations followed with complete streamlining of the manufacturing process, removal of bottlenecks, and total modernization of rice manufacturing plant and machinery and its balancing capacity. Moving ahead of the market, V K Arora introduced 1kg and 5 kg packs of rice in the market, as per consumers’ requirements. Quality based procurement, state of the art milling plants, product quality and customer focus are a few things Daawat has always been known for.

To increase the acceptability of LT Overseas products globally, the company has taken the lead in implementing industry best manufacturing practices & obtaining internationally acclaimed certifications. LT Overseas (now LT Foods Ltd) was among the first few in the rice industry to obtain the ISO 9001-2000 certification. Presently LT Food has obtained certifications like HACCP, SQF, BRC, and Organic and EIC.

The company has a strong distribution network in all major basmati consuming cities in India with more than a hundred distributors in each state. L T Overseas has also made inroads into more than 50 countries across the globe including markets like USA, Canada, UK , EU, middle east and Africa.

Product range of the company includes:

  • Dawat: LT Foods Ltd. is one of the country’s leading processor and exporter of packaged rice foods under the flagship brand “Daawat”. The brand is among the top players in the domestic branded Basmati Rice markets. ‘The Daawat’ brand has been a great success in international markets as well. Quality based procurement, state of the art milling plants, product quality and customer focus are a few things Daawat has always been known for.
  • Heritage: Heritage Basmati as a brand already made its presence felt for more than a decade, its not just another product of LT Overseas Ltd. but is also one of the trusted brands in the industry since years.
  • Orange:It is long grain rice which is suitable for the daily needs of households. This is very popular among the diverse population across geography.

Subsidiaries of the company

Indian susidiaries:

  • Daawat Foods (P) Limited The wholly owned subsidiary of LT Foods Ltd (formerly known as LT Overseas Ltd) was set up with state of art technology, milling unit in Mandideep, Bhopal, for production of parboiled rice. Rice processed here will cater to the institutions and requirement of Middle East market as well. The company has made investment of Rs 23.50 crore in this subsidiaries.
  • Nature Bio Foods Limited The company recognized that organic food is future of the world and in the same direction, company initiated steps few years back. For the same, the wholly owned subsidiary of the company was incorporated to cater the need of organic market which is approximately a market of $22 billion world wide and growing with the peace of 10%.
  • Staple Distribution Company Ltd. Looking at the potential and boom in retail business, Staple Distribution Company, a wholly owned subsidiary of the company has been incorporated during the year to play and establish itself as a backend player for Modern retail.
  • LT International Limited LT International Ltd., a subsidiary of the company is engaged in trading of varied merchandise.

Overseas Subsidiaries:

  • Kusha Inc.  Kusha Inc. is the largest distribution company in US with the brand name “Royal” and the said company has been acquired in December 2007 by LTO North America Inc.- a wholly owned subsidiary of LT Foods Limited. This acquisition has increased their market share from 7% to 52% appx in the US market.
  • LT Foods North America Inc. LT Foods North America Inc., a wholly owned subsidiary has been formed in California, to capture market share as well as to strengthen their presence in U.S.
  • Sona Global Limited & Nice International FZE Middle east market has a potential and to capture market share and strengthen their presence Sona Global Limited Dubai and its subsidiary Nice International FZE, Dubai were formed and these are engaged in trading of rice and rice products in the Middle East

Milestones & Achievements:

2007-08       Staple Distribution Company launched in domestic market to cater to the demands of modern retail.                  

                   State of the art plant set up in the Mandideep, Bhopal (MP.)

                   Acquired a top US Company, Kusha Inc; Kusha's brand, Royal is among the top 20 US brands: Company's share of the US market goes upto 52%.

2006-07         Inauguration of Silos Complex

                     Increase in capacity from 18 MTPH to 27 MTPH

2005-06         Awarded Udyog Ratna by PHD chamber of commerce and industry presented by Shri Bhupinder Singh Hooda Chief Minister , Haryana for valuable   contribution to Economic Development of Haryana

2004-05          India Star Award from India Institute pf Packaging.

                      Enhanced the capacity in Bahalgarh unit from 10TPH to 12 TPH , making the owned capacity to 18 MTPN.2003-04

                      Award from APEDA for export promotion and quality development of Basmati rice

2002-03          Received the right to use APEDA certification mark Quality products of India for export

                      Enhanced the capacity in Bahalgarh unit TPH to 10 TPH , making the total capacity to 16 MTPH2001-02                      

                      Registered and launched the brand Daawat in Canada

                      Obtained ISO 9000:2000 certification

                      Obtained HACCP certification of SQF (Safe Quality Food)20000CM for comprehensive food safety and Quality management systems

2000-01          Started the processing facility at Bahalgharh Unit of 4 TPH

                      Registered and launched the brand Daawat in Australia

1999-2000        Recognised as Star Trading House by Government of India

                       Registered and launched the brand Daawat in Mauritius Saudi Arabia and New Zealand

1998-99             Took over the business of Lal Chand Tirath Ram Rice Mill having capacity of 6 TPH1997-98

                        Awarded APEDA Export award for outstanding contribution to promotion of agricultural and processed food products during the year 1996-97

1995-96            Certificate of merit was awarded by APEDA for Significant contribution in the export of India long grain rice                       

                       Registered the brand Dawat in united States of America

1994-95            Set up own milling capacity

1993-94            Converted into a public Limited Company

1990-91             Incorporation of our company as a Private limited company

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