BSE:532783

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Good value with mediocre balance sheet.

Risks

  • LT Foods has significant price volatility in the past 3 months.
  • LT Foods is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has LT Foods's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.7%

BSE:532783

-0.2%

IN Food

-0.5%

IN Market


1 Year Return

-63.6%

BSE:532783

-3.3%

IN Food

-2.4%

IN Market

532783 underperformed the Food industry which returned -3.3% over the past year.

532783 underperformed the Market in India which returned -2.4% over the past year.


Share holder returns

532783IndustryMarket
7 Day-1.7%-0.2%-0.5%
30 Day-8.4%-2.3%-2.0%
90 Day-45.0%-3.8%-4.8%
1 Year-63.5%-63.6%-2.6%-3.3%-0.5%-2.4%
3 Year-32.4%-33.2%49.8%46.1%28.0%21.3%
5 Year86.9%79.2%130.1%119.8%44.9%31.2%

Price Volatility Vs. Market

How volatile is LT Foods's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is LT Foods undervalued based on future cash flows and its price relative to the stock market?

5.11x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for LT Foods to establish if it is available at moderate discount.

Unable to calculate intrinsic value for LT Foods to establish if it is available at substantial discount.


Price Based on Earnings

LT Foods is good value based on earnings compared to the IN Food industry average.

LT Foods is good value based on earnings compared to the India market.


Price Based on Expected Growth

LT Foods is good value based on expected growth next year.


Price Based on Value of Assets

LT Foods is good value based on assets compared to the IN Food industry average.


Next Steps

Future Growth

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

17.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

LT Foods's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

LT Foods's earnings are expected to grow by 17.5% yearly, however this is not considered high growth (20% yearly).

LT Foods's revenue growth is positive but not above the India market average.

LT Foods's earnings growth is expected to exceed the India market average.

LT Foods's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

LT Foods is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has LT Foods performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

LT Foods's year on year earnings growth rate has been positive over the past 5 years.

LT Foods's 1-year earnings growth is negative, it can't be compared to the 5-year average.

LT Foods's 1-year earnings growth is negative, it can't be compared to the IN Food industry average.


Return on Equity

LT Foods has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

LT Foods used its assets more efficiently than the IN Food industry average last year based on Return on Assets.


Return on Capital Employed

LT Foods's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is LT Foods's financial position?


Financial Position Analysis

LT Foods is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

LT Foods's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

LT Foods's level of debt (116.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (356.3% vs 116.4% today).

Debt is not well covered by operating cash flow (2.7%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.6x debt.


Next Steps

Dividend

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

0.74%

Current Dividend Yield


Dividend Yield and Payments Analysis

LT Foods's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.56%).

LT Foods's dividend is below the markets top 25% of dividend payers in India (2.23%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (26.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

  • Explore strong dividend paying companies in the food, beverage & tobacco industry.

Management

What is the CEO of LT Foods's salary, the management and board of directors tenure and is there insider trading?

12.1yrs

Average board tenure


CEO

Ashwani Arora (50yo)

7.3yrs

Tenure

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


CEO Compensation Analysis

Ashwani's remuneration is lower than average for companies of similar size in India.

Ashwani's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

12.1yrs

Average Tenure

64.5yo

Average Age

The average tenure for the LT Foods board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

Buy₹147,60726 Jun 19
Raghuvesh Holdings Pvt Ltd
EntityCompany
Shares6,664
Max Price₹22.15
Buy₹1,681,35924 Jun 19
Raghuvesh Holdings Pvt Ltd
EntityCompany
Shares76,495
Max Price₹21.98
Buy₹4,437,06021 Jun 19
Raghuvesh Holdings Pvt Ltd
EntityCompany
Shares200,500
Max Price₹22.13
Buy₹954,36004 Jun 19
Raghuvesh Holdings Pvt Ltd
EntityCompany
Shares33,000
Max Price₹28.92
Buy₹2,025,28323 May 19
Raghuvesh Holdings Pvt Ltd
EntityCompany
Shares70,000
Max Price₹29.23
Buy₹1,018,07722 May 19
Raghuvesh Holdings Pvt Ltd
EntityCompany
Shares36,000
Max Price₹28.28
Buy₹970,52921 May 19
Raghuvesh Holdings Pvt Ltd
EntityCompany
Shares33,000
Max Price₹29.41
Buy₹921,26630 Oct 18
Vandana Arora
EntityIndividual
Shares25,000
Max Price₹36.85
Buy₹1,295,70528 Sep 18
Ritesh Arora
EntityIndividual
Shares27,500
Max Price₹47.12
Buy₹4,790,29821 Sep 18
Rajinder Wadhawan
EntityIndividual
Role
Director of Operations
Shares100,000
Max Price₹47.90

Ownership Breakdown


Management Team

  • Vijay Arora (61yo)

    Executive Chairman & MD

  • Dipol Dhole

    Vice President of Human Resource & Administration

  • Ashok Arora (60yo)

    President of Punjab Operations

  • Rajinder Wadhawan

    Director of Operations

  • Ashwani Arora (50yo)

    CEO, MD

    • Tenure: 7.3yrs
  • Surinder Arora (57yo)

    MD & Whole Time Director

  • Vivek Chandra (61yo)

    Chief Executive Officer of Global Branded Business

    • Tenure: 8.7yrs
    • Compensation: 9.70m
  • Anu Sharma (37yo)

    Assistant General Manager – Legal

  • Kamal Poplai

    Head of Quality

  • Monika Jaggia (41yo)

    Compliance Officer & Company Secretary

    • Compensation: 222.72k

Board Members

  • Kashi Memani (80yo)

    Member of Advisory Board

  • Rajesh Srivastava (62yo)

    Non-Executive Nominee Director & Member of Advisory Board

    • Compensation: 13.00k
  • Pramod Bhagat (67yo)

    Non Executive Independent Director

    • Tenure: 13.4yrs
    • Compensation: 775.00k
  • Vijay Arora (61yo)

    Executive Chairman & MD

  • Suneet Gupta

    Member of Advisory Board

  • Ashwani Arora (50yo)

    CEO, MD

    • Tenure: 14.8yrs
  • Surinder Arora (57yo)

    MD & Whole Time Director

    • Tenure: 12.1yrs
  • Radha Singh (72yo)

    Non Executive Independent Director

    • Tenure: 8.8yrs
    • Compensation: 855.00k
  • Ashwani Windlas

    Member of Advisory Board

  • Suparas Bhandari (74yo)

    Non Executive Independent Director

    • Tenure: 3.4yrs
    • Compensation: 352.00k

Company Information

LT Foods Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LT Foods Limited
  • Ticker: 532783
  • Exchange: BSE
  • Founded: 1990
  • Industry: packaged foods and meats
  • Sector: food, beverage & tobacco
  • Market Cap: ₹6.477b
  • Shares outstanding: 319.84m
  • Website: Click here

Number of Employees


Location

  • LT Foods Limited
  • MVL-I Park
  • 4th Floor
  • Gurgaon
  • Haryana
  • 122001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532783BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2006
DAAWATNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2006
532783BSE (Mumbai Stock Exchange)INR1ININRInvalid date
DAAWATNSEI (National Stock Exchange of India)INR1ININRInvalid date

Biography

LT Foods Limited engages in the milling, processing, marketing, storage, packing, and distribution of branded and non-branded basmati rice, and rice food products worldwide. The company provides basmati an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/19 12:50
End of Day Share Price2019/07/19 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.