LT Foods (BSE:532783) - Share price, News & Analysis

Q: What is the Fair Price of 532783 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

532783 (₹92.6) is trading below our estimate of [[fair value]] (₹265.85)

532783 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	3/6
Past Performance	3/6
Financial Health	5/6
Dividends	4/6

532783 Stock Overview

LT Foods Limited engages in the milling, processing, marketing, storage, packing, and distribution of branded and non-branded basmati rice, and rice food products in India.

Rewards

Trading at 65.2% below our estimate of its fair value

Earnings are forecast to grow 22.85% per year

Earnings grew by 15.5% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

LT Foods Competitors

Dalmia Bharat Sugar and Industries

BSE:500097

₹26.8b

Venky's (India)

BSE:523261

₹29.9b

Bannari Amman Sugars

BSE:500041

₹31.0b

Dodla Dairy

BSE:543306

₹30.4b

Price History & Performance

Summary of all time highs, changes and price drops for LT Foods
Historical stock prices
Current Share Price	₹92.60
52 Week High	₹100.55
52 Week Low	₹58.75
Beta	1.0
1 Month Change	8.37%
3 Month Change	18.72%
1 Year Change	36.48%
3 Year Change	317.12%
5 Year Change	46.06%
Change since IPO	1,565.47%

Shareholder Returns

	532783	IN Food	IN Market
7D	6.3%	-1.3%	0.5%
1Y	36.5%	2.5%	8.7%

Return vs Industry: 532783 exceeded the Indian Food industry which returned 2.5% over the past year.

Return vs Market: 532783 exceeded the Indian Market which returned 8.7% over the past year.

Price Volatility

Is 532783's price volatile compared to industry and market?
532783 volatility
532783 Average Weekly Movement	6.6%
Food Industry Average Movement	6.9%
Market Average Movement	6.4%
10% most volatile stocks in IN Market	9.1%
10% least volatile stocks in IN Market	4.2%

Stable Share Price: 532783 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 532783's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1990	2,000	Ashwani Arora	https://www.ltgroup.in

LT Foods Limited engages in the milling, processing, marketing, storage, packing, and distribution of branded and non-branded basmati rice, and rice food products in India. The company provides basmati and non-basmati, brown, white, steamed, parboiled, organic, quick cooking, value added, flavored, specialty, arborio, jasmine, and fortified rice products. It also offers organic food and ingredient; and rice-based snacks, saute’ sauces, ready to heat, and cuppa rice products.

LT Foods Fundamentals Summary

How do LT Foods's earnings and revenue compare to its market cap?
532783 fundamental statistics
Market Cap	₹28.00b
Earnings (TTM)	₹3.09b
Revenue (TTM)	₹58.25b

9.6x

P/E Ratio

0.5x

P/S Ratio

Is 532783 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
532783 income statement (TTM)
Revenue	₹58.25b
Cost of Revenue	₹38.53b
Gross Profit	₹19.72b
Other Expenses	₹16.63b
Earnings	₹3.09b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	9.67
Gross Margin	33.86%
Net Profit Margin	5.31%
Debt/Equity Ratio	61.4%

How did 532783 perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

10%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 532783 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 532783?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 532783. This is calculated by dividing 532783's market cap by their current preferred multiple.
What is 532783's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹28.00b

532783 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.7x
Enterprise Value/EBITDA	6.4x
PEG Ratio	0.4x

Price to Earnings Ratio vs Peers

How does 532783's PE Ratio compare to its peers?

532783 PE Ratio vs Peers

The above table shows the PE ratio for 532783 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	21.8x
500097 Dalmia Bharat Sugar and Industries	12.1x	34.1%	₹26.8b
523261 Venky's (India)	18.8x	n/a	₹29.9b
500041 Bannari Amman Sugars	38.8x	n/a	₹31.0b
543306 Dodla Dairy	25x	25.3%	₹30.4b
532783 LT Foods	9.1x	22.9%	₹28.0b

Price-To-Earnings vs Peers: 532783 is good value based on its Price-To-Earnings Ratio (9.6x) compared to the peer average (21.8x).

Price to Earnings Ratio vs Industry

How does 532783's PE Ratio compare vs other companies in the IN Food Industry?

Price-To-Earnings vs Industry: 532783 is good value based on its Price-To-Earnings Ratio (9.6x) compared to the Indian Food industry average (24.3x)

Price to Earnings Ratio vs Fair Ratio

What is 532783's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

532783 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.6x
Fair PE Ratio	24.9x

Price-To-Earnings vs Fair Ratio: 532783 is good value based on its Price-To-Earnings Ratio (9.6x) compared to the estimated Fair Price-To-Earnings Ratio (24.9x).

Share Price vs Fair Value

What is the Fair Price of 532783 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 532783 (₹92.6) is trading below our estimate of fair value (₹265.85)

Significantly Below Fair Value: 532783 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is LT Foods forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

22.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532783's forecast earnings growth (22.9% per year) is above the savings rate (6.8%).

Earnings vs Market: 532783's earnings (22.9% per year) are forecast to grow faster than the Indian market (18.8% per year).

High Growth Earnings: 532783's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 532783's revenue (8.3% per year) is forecast to grow slower than the Indian market (10.8% per year).

High Growth Revenue: 532783's revenue (8.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if 532783's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has LT Foods performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

21.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 532783 has high quality earnings.

Growing Profit Margin: 532783's current net profit margins (5.3%) are lower than last year (5.8%).

Past Earnings Growth Analysis

Earnings Trend: 532783's earnings have grown significantly by 21.3% per year over the past 5 years.

Accelerating Growth: 532783's earnings growth over the past year (15.5%) is below its 5-year average (21.3% per year).

Earnings vs Industry: 532783 earnings growth over the past year (15.5%) exceeded the Food industry 13%.

Return on Equity

High ROE: 532783's Return on Equity (15.3%) is considered low.

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Financial Health

How is LT Foods's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 532783's short term assets (₹31.7B) exceed its short term liabilities (₹17.8B).

Long Term Liabilities: 532783's short term assets (₹31.7B) exceed its long term liabilities (₹4.3B).

Debt to Equity History and Analysis

Debt Level: 532783's net debt to equity ratio (59.6%) is considered high.

Reducing Debt: 532783's debt to equity ratio has reduced from 229.2% to 61.4% over the past 5 years.

Debt Coverage: 532783's debt is well covered by operating cash flow (39.2%).

Interest Coverage: 532783's interest payments on its debt are well covered by EBIT (7.6x coverage).

Balance Sheet

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Dividend

What is LT Foods's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.08%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 532783's dividend (1.08%) is higher than the bottom 25% of dividend payers in the Indian market (0.39%).

High Dividend: 532783's dividend (1.08%) is low compared to the top 25% of dividend payers in the Indian market (1.72%).

Stability and Growth of Payments

Stable Dividend: 532783's dividend payments have been volatile in the past 10 years.

Growing Dividend: 532783's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (10.4%), 532783's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (8.9%), 532783's dividend payments are thoroughly covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure

CEO

Ashwani Arora (53 yo)

10.33yrs

Tenure

₹21,121,424

Compensation

Mr. Ashwani Kumar Arora has been the Chief Executive Officer of LT Foods Limited since April 01, 2012 and May 27, 2016 respectively and serves as its Managing Director and served as its Chief Financial Off...

CEO Compensation Analysis

Compensation vs Market: Ashwani's total compensation ($USD267.18K) is about average for companies of similar size in the Indian market ($USD278.95K).

Compensation vs Earnings: Ashwani's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: 532783's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.

Board Members

Experienced Board: 532783's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/11 00:00
End of Day Share Price	2022/08/11 00:00
Earnings	2022/06/30
Annual Earnings	2022/03/31