Buy LT Foods; target of Rs 520: Motilal Oswal

Motilal Oswal's research report on LT Foods

LT Foods (LTFOODS) is a leading Indian basmati and specialty rice producer with over 70 years of experience in offering a diverse range of rice products under brands, Daawat and Royal. The company operates on a farm-to-fork model, ensuring comprehensive control over the value chain. With a significant presence in over 80 countries, LTFOODS achieved a 15% revenue CAGR over FY19-24. It focuses on expanding margins while maintaining a strong market share globally.

Outlook

LTFOODS is currently trading at ~21x/16x/13x FY25E/FY26E/FY27E EPS with an FY27E RoE/RoCE of ~20% each. We initiate coverage on the stock with a BUY rating and a TP of INR520, based on 18x FY27E P/E.