LTFOODS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | LTFOODS | Market Cap | 14,954 Cr. | Current Price | 431 ₹ | High / Low | 519 ₹ |
| Stock P/E | 70.4 | Book Value | 52.6 ₹ | Dividend Yield | 0.70 % | ROCE | 15.5 % |
| ROE | 12.0 % | Face Value | 1.00 ₹ | DMA 50 | 403 ₹ | DMA 200 | 402 ₹ |
| Chg in FII Hold | -0.18 % | Chg in DII Hold | 0.67 % | PAT Qtr | 66.2 Cr. | PAT Prev Qtr | 71.2 Cr. |
| RSI | 62.6 | MACD | 9.65 | Volume | 5,95,969 | Avg Vol 1Wk | 4,97,375 |
| Low price | 329 ₹ | High price | 519 ₹ | PEG Ratio | 3.01 | Debt to equity | 0.12 |
| 52w Index | 53.6 % | Qtr Profit Var | 6.28 % | EPS | 6.12 ₹ | Industry PE | 24.8 |
Entry Zone: 410 ₹ – 430 ₹ (near 50 & 200 DMA support)
Exit Guidance: 480 ₹ – 500 ₹ (resistance zone)
Holding View: Medium-term cautious holding with valuation risk
Positive
- ROCE (15.5%) and ROE (12%) show moderate efficiency
- Low debt-to-equity ratio (0.12) ensures financial stability
- Dividend yield of 0.70% adds shareholder value
- EPS of 6.12 ₹ provides earnings base
- DII holdings increased (+0.67%), signaling domestic institutional support
- Stock trading above both 50 DMA (403 ₹) and 200 DMA (402 ₹) indicates bullish momentum
Limitation
- Extremely high P/E of 70.4 compared to industry PE of 24.8 — severe overvaluation
- PEG ratio of 3.01 suggests growth not keeping pace with valuation
- Quarterly PAT decline (71.2 Cr → 66.2 Cr) raises earnings consistency concerns
- FII holdings decreased (-0.18%), showing reduced foreign investor confidence
- RSI at 62.6 nearing overbought territory
Company Negative News
- Sequential profit decline impacting sentiment
- Valuation premium relative to peers limits upside potential
Company Positive News
- Strong institutional support from domestic investors
- Low leverage enhances financial stability
- Technical indicators (MACD 9.65) show bullish momentum
Industry
- Industry PE at 24.8, much lower than LTFOODS’s 70.4 — sector valuations more moderate
- Sector momentum strong with 52-week index return of 53.6%
Conclusion
LT Foods demonstrates moderate fundamentals with low leverage, decent ROCE/ROE, and institutional support. However, stretched valuations, declining profits, and reduced foreign participation limit upside potential. Entry near 410–430 ₹ offers a defensive setup, with exits around 480–500 ₹ advisable. Long-term holding requires cautious monitoring of earnings consistency and valuation levels, as premium multiples may restrict growth potential.
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