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 in India, the United States, the Middle East, Europe, and internationally.


Snowflake Analysis

Very undervalued with adequate balance sheet.


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

Stable Share Price: 532783 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.1%

532783

-0.2%

IN Food

-0.07%

IN Market


1 Year Return

-20.1%

532783

23.8%

IN Food

9.5%

IN Market

Return vs Industry: 532783 underperformed the Indian Food industry which returned 23.8% over the past year.

Return vs Market: 532783 underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

532783IndustryMarket
7 Day-6.1%-0.2%-0.07%
30 Day-7.5%0.8%-1.3%
90 Day18.9%10.0%1.9%
1 Year-18.2%-20.1%25.5%23.8%11.5%9.5%
3 Year-49.1%-50.6%79.7%74.4%23.6%16.7%
5 Year151.9%140.4%129.0%118.0%35.5%22.9%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 532783 (₹26.4) is trading below our estimate of fair value (₹67.19)

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


Price To Earnings Ratio

PE vs Industry: 532783 is good value based on its PE Ratio (5.6x) compared to the Food industry average (13.9x).

PE vs Market: 532783 is good value based on its PE Ratio (5.6x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: 532783 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 532783 is good value based on its PB Ratio (0.6x) compared to the IN Food industry average (0.9x).


Next Steps

Future Growth

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

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532783's forecast earnings growth (10.6% per year) is above the savings rate (6.5%).

Earnings vs Market: 532783's earnings (10.6% per year) are forecast to grow slower than the Indian market (20.5% per year).

High Growth Earnings: 532783's earnings are forecast to grow, but not significantly.

Revenue vs Market: 532783's revenue (6.7% per year) is forecast to grow slower than the Indian market (9% per year).

High Growth Revenue: 532783's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 532783's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has LT Foods performed over the past 5 years?

15.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532783 has high quality earnings.

Growing Profit Margin: 532783's current net profit margins (3.8%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: 532783's earnings have grown by 15.7% per year over the past 5 years.

Accelerating Growth: 532783's earnings growth over the past year (8.2%) is below its 5-year average (15.7% per year).

Earnings vs Industry: 532783 earnings growth over the past year (8.2%) underperformed the Food industry 20.6%.


Return on Equity

High ROE: 532783's Return on Equity (10.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is LT Foods's financial position?


Financial Position Analysis

Short Term Liabilities: 532783's short term assets (₹22.9B) exceed its short term liabilities (₹14.4B).

Long Term Liabilities: 532783's short term assets (₹22.9B) exceed its long term liabilities (₹4.0B).


Debt to Equity History and Analysis

Debt Level: 532783's debt to equity ratio (84.3%) is considered high.

Reducing Debt: 532783's debt to equity ratio has reduced from 261.4% to 84.3% over the past 5 years.

Debt Coverage: 532783's debt is well covered by operating cash flow (23.1%).

Interest Coverage: 532783's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: 532783 has a high level of physical assets or inventory.

Debt Coverage by Assets: 532783's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

1.89%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%0.6%markettop25%2.6%industryaverage0.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 532783's dividend (1.89%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 532783's dividend (1.89%) is low compared to the top 25% of dividend payers in the Indian market (2.59%).


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.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (3.2%), 532783's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

9.3yrs

Average board tenure


CEO

Ashwani Arora (50yo)

7.8yrs

Tenure

₹21,121,424

Compensation

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

Compensation vs Market: Ashwani's total compensation ($USD294.04K) is above average for companies of similar size in the Indian market ($USD50.06K).

Compensation vs Earnings: Ashwani's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Vijay Arora
Executive Chairman & MD0yrs₹21.16m7.19% 627.5m
Ashwani Arora
CEO, MD7.8yrs₹21.12m7.19% 627.5m
Surinder Arora
MD & Whole Time Director12.7yrsno data7.19% 627.5m
Kashi Memani
Member of Advisory Board0yrsno datano data
Suparas Bhandari
Non Executive Independent Director4yrs₹340.00kno data
Rajesh Srivastava
Non-Executive Nominee Director9.3yrsno datano data
Suneet Gupta
Member of Advisory Board0yrsno datano data
Ashwani Windlas
Member of Advisory Board0yrsno datano data
Gokul Patnaik
Non Executive Independent Director3.9yrs₹475.00kno data

9.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 532783's board of directors are considered experienced (9.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 532783 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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: ₹8.732b
  • Shares outstanding: 319.84m
  • Website: https://www.ltgroup.in

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DAAWATNSEI (National Stock Exchange of India)INR1ININRNo data
532783BSE (Mumbai Stock Exchange)INR1ININRNo data
532783BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2006
DAAWATNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2006

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 in India, the United States, the Middle East, Europe, and internationally. The company provides basmati and non-basmati, brown, white, steamed, parboiled, organic, quick cooking, value added, flattened, and flavored rice products. It also offers organic food products, such as rice, pulses, oil and oil seeds, cereal grains, spices, herbs, millets and sweeteners, and nuts; and rice-based snacks, ready-to heat meals, and sauté sauces. In addition, the company provides staples, such wheat flour, refined flour, chickpea flour, and semolina. LT Foods Limited offers its food products primarily under the Daawat, Royal, Ecolife, Devaaya, 817 Elephant, Rozana, Gold Seal Indus Valley, Kari Kari, and Heritage brand names. The company was formerly known as LT Overseas. LT Foods Limited was founded in 1990 and is based in Gurugram, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 13:03
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
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.