This smallcap rice specialist is trading in green amid market slowdown
Stock rallies over 2% on acquiring US rice brand.
LT Foods Ltd (Daawat) has been trending in the packaged food sector as it has rallied by over 2% when Sensex has fallen by 1.4%. The share has been trading in the green territory today. The scrip opened at Rs 67.50 and made a day’s high of Rs 68.95. At 12:05 pm today, the stock is trading at Rs 67.20, up by 2.13% on the BSE.
After the market hours yesterday, Daawat announced that its subsidiary LT Foods Americas Inc. (LTFA) has acquired a 51% stake in US-based Golden Star Trading Inc along with its brand Golden Star. It also possesses a call option on the remaining 49% stake at the end of three years. LTFA contributes about 35% to Daawat’s consolidated revenues and is popular for its rice brand ‘Royal’ in North America. Golden Star is one of the leading brands in the jasmine rice market. With its acquisition, LTFA can further strengthen its position in North America.
Talking about its recent quarterly results, in Q3FY22, revenue grew by 21.26% YoY to Rs 1368.22 crore from Rs 1128.35 crore in Q3FY21. On a sequential basis, the top-line was up by 3.67%. PBIDT (Ex OI) was reported at Rs 150.55 crore, up by 9.9% as compared to the year-ago period and the corresponding margin was reported at 11 per cent, contracting by 114 basis points YoY. PAT was reported at Rs 78.19 crore, up by 11.88% from Rs 69.89 crore in the same quarter for the previous fiscal year. The PAT margin stood at 5.71% in Q3FY22 contracting from 6.19% in Q3FY21.
LT Foods is a leading rice-based food company with strong global brands of basmati and other speciality rice, organic foods and rice-based convenience products. The stock has a 52-week high of Rs 90.40 and a 52-week low of Rs 54.05.
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