Shares of this FMCG company surged 8 percent in Wednesday’s trading session after Sunil Singhania’s Abakkus Asset Management bought stake in the company. The shares have delivered around 80 percent to its shareholders in one year.
With a market capitalization of Rs. 6,096 crores, the shares of LT Foods Ltd started Wednesday’s trading session on a higher note at Rs. 177.50, gaining 8 percent compared to its previous close of Rs. 162.75 and are currently trading at Rs. 175 apiece.
According to the BSE Bulk Deals data, Sunil Singhania’s Abakkus Asset Manager LLP has bought 33,93,543 equity shares, (which is equivalent to 0.98 percent of paid-up equity), in the company at an average price of Rs 162.04 per share, valued at nearly Rs. 55 crores.
Furthermore, Ace Investor Mr Mukul Agrwal, entering the stock in December 2018, currently holds 40 lakh equity shares equivalent to a 1.15 percent stake in this company. The current holding value of his investment amounts to Rs. 69.3 crores.
Additionally, at the end of the December 2023 quarter, domestic mutual funds owned a 5.12 percent stake in LT Foods, among which DSP Smallcap Fund has a 3.04 percent stake.
Coming onto the company’s financial statements, the revenue decreased by 1.8 percent from Rs. 1,978 crores during the September quarter to Rs. 1,942 crores in the December quarter. On the other hand, the net profits declined by 2.5 percent from Rs. 157 crores to Rs. 153 crores during the same period.
The company has expanded its product portfolio by entering into other speciality and regional rice i.e. jasmine rice, black rice, Arborio rice, sona masoori, etc and has also expanded its portfolio in ready-to-heat and ready-to-cook business.
Moreover, the company has planned to increase their market share through investments in marketing initiatives and continuous product market improvement.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 16.48 percent during FY 21-22 to 17.78 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 14.76 percent to 17.61 percent during the same timeframe. Furthermore, the net profit margin increased from 5.70 percent during FY21-22 to 6.10 percent during FY22-23.
Headquartered in New Delhi, LT Foods was incorporated in 1990. The company is primarily engaged in the business of milling, processing and marketing of branded and non-branded basmati rice and manufacturing of rice food products in the domestic and overseas markets.
Written By Vaibhav Patil
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