LTFOODS - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📈 Investment Analysis: LT Foods Ltd (LTFOODS)

Investment Rating: 4.3

LT Foods is a fundamentally strong player in the consumer food segment, showing consistent profitability, low debt, and solid return metrics. While valuation is slightly stretched, its growth trajectory and brand strength make it a promising long-term candidate.

✅ Why It’s a Good Long-Term Investment

Profitability & Efficiency

ROE (16.8%) and ROCE (19.2%) → strong capital efficiency.

EPS (₹17.9) → healthy earnings base.

Quarterly PAT Growth (10%) → consistent performance.

Valuation

P/E (28.1) > Industry P/E (22.9) → slight premium, justified by brand strength and growth.

PEG Ratio (1.02) → fair valuation relative to earnings growth.

Price-to-Book (≈4.51) → moderately high, but not excessive for FMCG.

Financial Stability

Debt-to-Equity (0.33) → low leverage, strong balance sheet.

Dividend Yield (0.40%) → modest, but consistent.

Technical Momentum

MACD (9.57) and RSI (58.7) → bullish signals.

Volume above average → strong investor interest.

🎯 Ideal Entry Price Zone

Based on DMA and support levels

Entry Zone: ₹460–₹480

₹461 is the 50 DMA, a solid support level.

₹398 is the 200 DMA, ideal for deep value accumulation.

Avoid entry near ₹519 (52-week high) unless breakout sustains.

🧭 Exit Strategy / Holding Period

If you already hold LTFOODS

Holding Period: Minimum 3–5 years to benefit from brand-led growth and ROE compounding.

Exit Strategy

Partial Exit near ₹600–₹620** if price approaches analyst targets

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Full Exit if PEG rises above 1.5 or ROCE drops below 15%.

Trailing Stop Loss: Consider placing it around ₹470 to protect gains.

⚠️ Risks to Monitor

Valuation Premium → monitor PEG and P/E for signs of overheating.

Export Headwinds → recent regulatory issues in the US impacted a subsidiary

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FII Holding Increase (0.36%) and DII Holding (1.06%) → positive institutional sentiment, but still modest.

Would you like a comparison with other FMCG or agri-based stocks to see how LT Foods stacks up?

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Moneycontrol

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www.businesstoday.in

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