In Friday’s trading session, the shares of a leading FMCG company in the consumer food space surged 6.2 percent to Rs. 297.75, after the company announced expanding its footprints to the United Kingdom to tap the £1 billion rice and rice-based food market.
At 11:07 a.m., the shares of LT Foods Limited were trading in the green at Rs. 290.7, up by 3.7 percent, compared to its previous closing price of Rs. 280.4, with a market cap of Rs. 10,094.6 crores.
What’s the News:
LT Foods has informed the stock exchanges regarding the inauguration of a new facility in the United Kingdom (U.K.).
With this new facility, LT Foods is set to revolutionise the rice market in the U.K. and meet the growing demand for premium rice and rice-based food products.
To ensure consumers experience the finest quality of rice and rice-based food products from the trusted brands of LT Foods, the facility will feature the latest technology and modern infrastructure.
About the new facility:
Located in Harlow, the new facility is spread over an area of 1 lakh square feet, and this location offers strategic advantages, allowing LT Foods to efficiently serve the U.K. market.
To provide a diverse range of options to meet varying consumer demands, the facility will offer both branded and private-label products.
Company’s expectations:
The rice and rice-based food market in the U.K. is worth around £ 1 billion.
To tap this opportunity, LT Foods has made an initial investment of £ 7 million in this new facility with a commitment to further investment of up to £ 50 million in the coming years.
The company is expecting annual revenue to the tune of £ 50 million over the next 2 years, with a targeted £ 100 million within the next 5 years, and will also provide employment opportunities to local talent.
The company has already partnered with 4 leading retailers in the U.K. with plans to further scale this up.
Moreover, the facility boasts a production capacity of 60,000 tonnes of rice per annum, setting the stage for substantial growth in the coming years.
Financials:
Financially, the company experienced significant growth in its revenue from operations, showing a year-on-year rise of 14 percent from Rs. 1,821.4 crore in Q4 FY22-23 to Rs. 2,074.8 crore in Q4 FY23-24.
Similarly, its after-tax profit increased during the same period from Rs. 131.8 crore to Rs. 150.2 crore, indicating a rise of 14 percent.
Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA grew 25 percent on a year-on-year basis to Rs. 262 crore in Q4 FY23-24 from Rs. 210 crore in Q4 FY22-23, while the EBITDA margin stood at 12.5 percent as against 11.4 percent, during the same period.
Stock Performance:
The stock has delivered nearly multibagger returns of nearly 124.3 percent in one year, and around 39.2 percent of positive returns in the last six months. So far in 2024, the shares of LT Foods have given positive returns of about 43 percent.
About the Company:
LT Foods Limited is primarily in the business of milling, processing and marketing branded and non-branded basmati rice and manufacturing rice food products in the domestic and overseas markets. Its operations include procurement, storage, processing, packaging and distribution.
LT Foods’ rice product portfolio comprises brown rice, white rice, steamed rice, parboiled rice, organic rice, quick-cooking rice, value-added rice and flavoured rice in the ready-to-cook segment.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
