LTFOODS - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.2

📊 Core Financials & Profitability

Earnings & Growth: Quarterly PAT declined slightly from ₹38.1 Cr to ₹37.0 Cr, with a 27.1% drop in profit variation. EPS of ₹5.71 is modest for a ₹464 stock, though the company has delivered strong long-term returns — over 816% in five years

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Return Metrics

ROE: 12.1% and ROCE: 15.6% — solid, indicating efficient capital deployment.

Debt Profile: Debt-to-equity at 0.07 — extremely low, enhancing financial stability.

Dividend Yield: 0.65% — modest, with consistent payouts.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 81.3 Very high vs. industry PE of 21.1 — richly valued.

P/B Ratio ~8.94 Elevated relative to book value ₹51.9.

PEG Ratio 3.42 Indicates overvaluation relative to earnings growth.

🔍 Conclusion: LT Foods is trading at a premium, with valuation metrics suggesting caution. However, its strong brand equity and low debt justify part of the optimism.

🍚 Business Model & Competitive Edge

Core Operations: LT Foods is a global FMCG company specializing in basmati rice, organic food, and rice-based products. Flagship brands include Daawat® in India and Royal® in North America

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Strategic Strengths

Presence in over 80 countries.

Strong brand recall and premium positioning in the specialty rice segment.

Institutional confidence: DII holdings up 1.06%, FII up 0.36%.

Growth Outlook

Analysts forecast a 1-year price target of ₹512, implying ~10% upside

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Long-term targets suggest ₹600 by end of 2025 and ₹800 by 2026

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Financial strength score: 60/100; valuation score: 40.3/100 — mid-range performer

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📉 Technicals & Entry Zone

RSI: 56.4 — neutral, offering buying comfort.

MACD: 1.06 — mild bullish signal.

DMA Levels: Price above both 50-DMA and 200-DMA — trend strength confirmed.

📌 Suggested Entry Zone: ₹440–₹455 — near 50-DMA, offering a better margin of safety.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong brand, global reach, and low debt support long-term compounding.

Buy on Dips: Prefer entry near ₹450, especially if RSI cools below 50.

Monitor: Export volumes, margin trends, and consumer demand shifts.

You can explore LT Foods’ live share analysis and technical scores

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, multi-year price targets and forecast

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, and capital investment trends

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for deeper insights. Let me know if you'd like a peer comparison with KRBL or Chaman Lal Setia next.

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