LT Foods share price: Accumulate LT Foods, target price Rs 82: Geojit

Geojit has accumulate call on with a target price of Rs 82. The current market price of LT Foods is Rs 70.4. Time period given by analyst is one year when LT Foods Ltd. price can reach defined target.



LT Foods Ltd., incorporated in the year 1990, is a Small Cap company (having a market cap of Rs 2258.10 Crore) operating in Agro Processing sector.
. key Products/Revenue Segments include By Products, Paddy, Other (Traded), Service Charges, Others, Bardana, Rental Income and Processing Charges for the year ending 31-Mar-2021.

Financials

For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 1537.24 Crore, up 12.32 % from last quarter Total Income of Rs 1368.58 Crore and up 34.08 % from last year same quarter Total Income of Rs 1146.52 Crore. Company reported net profit after tax of Rs 77.17 Crore in latest quarter.

Investment Rationale
LTF’s consistent efforts on strengthening the brands, widening distribution network, along with region & product diversification through organic & inorganic routes has been the strategy for growth. The recent acquisition in Jasmine rice segment will strengthen market share. The re-opening of HoReCa channels is also aiding growth while LTF’s strong focus on value-added products will improve margins. LTF currently trades at 7x 1Yr Fwd P/E. We value at 6x FY24E (3Yr avg=6x) with a Target of Rs. 82, downgrade to Accumulate rating factoring the current margin pressure.

Promoter/FII Holdings
Promoters held 56.81 per cent stake in the company as of 31-Mar-2022, while FIIs owned 1.38 per cent, DIIs 3.39 per cent.