T Foods Ltd. (LTFL) is one of the leading basmati rice players in India having a strong foothold both in exports (55% of FY17 revenue) & domestic market (45%). Key brands include Daawat (leading brand in India), Royal (#1 brand in USA) and eco Life (organic food). With growing global demand for basmati and limited supply, we expect LTFL to witness steady volume growth with improving realizations on back of increased branded business. We forecast 12.2%/25.7% revenue/adj.PAT CAGR over FY17-20E and an EBITDA margin improvement of 127bpsto 12.5%. We initiate coverage with a BUY rating valuing the stock at12x FY20E EPS of INR10.4 with target price of INR125