LT Foods Ltd. share price target

Stronger Performance Persists: The company recorded consolidated revenue growth of 19.1% in Q3FY18 on YoY basis, on account of strong growth in branded business which grew in value terms by 12% in domestic market and 23% ininternational market on YoY basis. Launch of new operations in Rotterdam and higher marketing expends led to deterioration in EBITDA margins by 271 bps on YoY basis.

For 3QFY2018, LT Foods Ltd (LTFL) posted results in line with our expectations on top-line and bottom-line fronts. Revenue grew by ~19% yoy to `941cr, driven by healthy growth in domestic as well as international businesses. On the operating front, margins contracted by 275bp yoy due to loss of `10cr in European operations and one-time ba..

Stronger Quarter with Improved Margin: LT Foods Ltd has delivered strong set of consolidated numbers having recorded revenue in Q2FY18 at Rs.8531 Mn as against Rs.8290 Mn in Q2FY17 registering growth of 2.9% on YoY basis. The shares of basmati, organic and private label businesses as % of total revenue are on rise which stand at 62.0%, 10.0% and 18.0% respectively.

LT Foods Limited (LTFL) is a branded speciality foods company engaged in milling, processing and marketing of branded and non-branded basmati rice and manufacturing of rice food products in the domestic and overseas markets. Its geographical segments include India, North America and Rest of the World. The major brands of the company are D..

Impressive Performance at Operational Level: LT Foods Ltd has delivered impressive performance wherein it reported revenue from sales in Q1FY18 of Rs.7619 Mn as against Rs.7030 Mn in Q1FY17 and Rs.9621 Mn in Q4FY17 thereby registering growth of 8.4% on YoY basis but de-growth of 20.8% on QoQ basis. The company recorded EBITDA at Rs.953 Mn in Q1FY18 as against Rs.909 Mn of Q1FY17 and Rs.1060 Mn of Q4FY17, marking growth of 4.8% but deterioration in margin by 43 bps on YoY basis and de-growth of 10.2% but improvement in margin by 148 bps, on QoQ basis.

Good Top Line Performance But QoQ Margins Under Pressure: LT Foods Ltd has registered top line growth of 18.9% from Rs.7099 Mn toRs.8445 Mn QoQ basis and 22.2% growth on YoY basis to Rs.8445 Mn from Rs.6909 in Q2FY16. EBITDA has however, registered de-growth of 4.3% on QoQ basis but growth of 3.2% on YoY basis.

India is one of the two countries in the world which produce basmati rice. On being one of the largest processors and exporters of basmati rice, LT Foods Ltd., hasbeen experiencing all round growth. The top line and bottom line of the company have grown at a CAGR of 18.9% and 23.1% respectively, during the period FY11-16 and the momentum so developed is likely to continue and even pick-up in view of rising demand for rice as staple food in general and basmati rice in particular.