Top Rice and Wheat Stocks in India: India is divided by region when it comes to the consumption of rice and wheat. In northern India, consuming Roti (Wheat) is a common practice whereas in the southern parts the consumption of rice tops any other staple.
As a matter of fact, India ranks second globally in terms of rice consumption. In this article, we will take a look at the top rice and wheat stocks in India that help in fulfilling the country’s huge demand. Keep reading to find out!
India’s packaged wheat flour has a market size of Rs 220 bn and is growing at a CAGR of 20%, with the urban market occupying more than 90% of the overall market.
However, with increased market penetration by the leading market players, the rural market is also likely to report steady growth of packaged wheat flour in India.
Companies operating in this sector are also affected by multiple factors like climate change, geopolitical impacts, and commodity price changes among others. Despite that, the Indian food sector, which contributes to 57% of the overall FMCG market, has witnessed a growth of 8-9%.
To curb the spiking retail inflation in India and manage food security, the government recently banned the export of wheat. It said that India’s expected production for 2022-23 is 105 million metric tonnes (MMT) which needs to fulfill the domestic consumption requirements.
Top Rice and Wheat stocks in India
Now let us have a look at the top rice and wheat stocks in India
Rice and Wheat Stocks #1 – Adani Wilmar
|Face Value (₹):||1||ROE (%):||22.25|
|Market Cap (Cr):||₹90,965Cr||Net Profit Margin:||1.76|
|EPS (TTM) (₹):||6||Debt to Equity:||0.58|
|Stock P/E (TTM):||113.18||Current Ratio||1.04|
|Dividend Yield (%):||0||Promoter’s Holdings (%):||87.94%|
Adani Wilmar is a joint venture between Adani Group and the Wilmar Group of Singapore. It is engaged in the manufacturing of edible oil, wheat flour, rice, pulses, and sugar and owns the popular brand ‘Fortune’.
The edible oil giant recently acquired renowned basmati rice brands ‘Kohinoor’ and ‘Charminar’ from the US-based McCormick, to expand its staple foods portfolio. This enabled the company to dethrone HUL and become India’s largest FMCG company in terms of revenue. Apart from this, the company is also planning to produce 30-35 million tonnes per annum daily-use rice segment
During Q4FY22 the company reported a consolidated net profit of Rs. 234.29 cr. which is a decline of 25.62% while its revenue grew by 40.18 per cent to Rs. 14,960.37 cr. On a yearly basis, they earned a net profit of Rs. 804 cr. and a revenue of Rs. 54,214 cr. This was backed by the increase in sales volume.
Rice and Wheat Stocks #2 – Hindustan Unilever (HUL)
|Face Value (₹):||1||ROE (%):||18.33|
|Market Cap (Cr):||₹551,837Cr||Net Profit Margin:||15.49|
|EPS (TTM) (₹):||38||Debt to Equity:||0|
|Stock P/E (TTM):||62.58||Current Ratio||1.34|
|Dividend Yield (%):||1.45||Promoter’s Holdings (%):||61.9|
Hindustan Unilever Ltd.(HUL), is one of the leading fast-moving consumer goods (FMCG) companies in India. It is a subsidiary of the British company Unilever. The business is divided majorly into three segments that are Home Care, Beauty & Personal Care, and Foods & Refreshment.
It has a strong presence across India as approximately 9 out of 10 Indian households use one or more brands of HUL. With a wide range of products, the company supplies more than 9 million outlets across the country.
Its Atta brand Annapurna Atta is one of the best sellers in the country.
During FY22, the company had a total turnover of Rs. ₹50,336 Cores. This is an 11% growth from the year before. The company earned a net profit of Rs. ₹8,818 Crores in the same period. The FMCG giant has zero debt and zero promoter pledge.
Rice and Wheat Stocks #3 – LT Foods
|Face Value (₹):||1||ROE (%):||18.13|
|Market Cap (Cr):||₹2,738Cr||Net Profit Margin:||6.32|
|EPS (TTM) (₹):||9||Debt to Equity:||0.73|
|Stock P/E (TTM):||9.89||Current Ratio||1.7|
|Dividend Yield (%):||1.17||Promoter’s Holdings (%):||56.81|
LT Foods is a Global Consumer Food Company that deals in Basmati and Other Specialty Rice, Organic Food and Ingredient business, and Health and Convenience segments. It operates with its flagship brands ‘Daawat’ and ‘Royal’.
Their brand Daawat has a 20% market share in the Indian market and a 50% market share in the US market. Other brands such as Heritage, Devaaya, Gold Seal Indus Valley, 817 Elephant, and Rozana have also emerged as preferred brands. The company also markets its product in more than 60 countries.
The company is yet to announce its Q4 results for FY22. On a yearly basis, the company recorded net sales of Rs. 4,644.35 Crores in FY21 and a net profit of Rs. 274.05 crores which were around a 49% increase from the year before.
Rice and Wheat Stocks #4 – KRBL Limited
|Face Value (₹):||1||ROE (%):||16.39|
|Market Cap (Cr):||₹5,373Cr||Net Profit Margin:||14|
|EPS (TTM) (₹):||21||Debt to Equity:||0.08|
|Stock P/E (TTM):||10.82||Current Ratio||4.68|
|Dividend Yield (%):||1.53||Promoter’s Holdings (%):||59.8|
KRBL Ltd. is an Indian rice processing and exporting company. It holds the title of being the world’s largest rice miller. The company owns the brand ‘India Gate’ which is the largest selling rice brand in India.
Recently the company has ventured into premium regional non-basmati rice variant besides expanding its product basket into the health food segment with the introduction of Amaranth and Basmati Bran Oil in the exports market. So far the company exports rice to over 80 countries.
The company is also yet to announce its Q4 results for FY22. Looking at the previous year’s results, the company earned a revenue of Rs. 3,991.88 Cr. and a net profit of Rs. 558.91 Cr. It is focused on reducing its debt and becoming zero debt by end of the year.
Rice and Wheat Stocks #5 – GRM Overseas
|Face Value (₹):||2||ROE (%):||41.21|
|Market Cap (Cr):||₹1,971Cr||Net Profit Margin:||5.68|
|EPS (TTM) (₹):||14||Debt to Equity:||1.42|
|Stock P/E (TTM):||23.32||Current Ratio||1.36|
|Dividend Yield (%):||1.22||Promoter’s Holdings (%):||72|
GRM Overseas Ltd is engaged in the business of processing and sale of almond kernels, paddy, clove, pasta, rice, and wheat. It is the 3rd largest rice exporter to the world. The company exports to more than 38 countries around the world. It operates owns brands like ‘Himalaya River’ and ‘Tanoush’.
To further strengthened its 10X brand, the company added a packaged Wheat Flour “10X Shakti Chakki Fresh Atta”, in its product offerings under its subsidiary GRM Foodkraft Private Limited (GFK).
In Q4 of FY22, the company has reported a total income of Rs. 376.85 Cr. net profit of Rs. 15.08 Cr. On a yearly basis, the consolidated revenue of the company in FY21 was Rs 799.37 crores and its net profit was Rs 45.22 Crores
Rice and Wheat Stocks #6 – Chaman Lal Setia Exports
|Face Value (₹):||2||ROE (%):||26.33|
|Market Cap (Cr):||₹562Cr||Net Profit Margin:||9.63|
|EPS (TTM) (₹):||12||Debt to Equity:||0.27|
|Stock P/E (TTM):||8.79||Current Ratio||4.21|
|Dividend Yield (%):||0.52||Promoter’s Holdings (%):||73.87|
Chaman Lal Setia Exports Ltd is engaged in the milling and processing of raw and parboiled Basmati Rice. The company’s product portfolio includes Basmati rice, Parboiled Basmati Rice, Raw Basmati Rice, and Basmati health rice.
Its flagship brand “Maharani” basmati rice is known to be one of the most trusted basmati rice companies in India due to its honest dealings and fair business practices.
It is also counted as one of the largest manufacturer-exporter of basmati rice in India. It has a presence in more than 83 countries.
The company is yet to announce its Q4 FY22 results. In FY21, the company reported a revenue of Rs 851.49 Crores and a net profit of Rs 82.01 Crores which is a 59% increase from the previous year. The company has low debt and is focused to reduce it further.
In this article, we took a look at the top rice and wheat stocks in India. These top four stocks hold a significant market share for each of their products. Retail inflation is rising over the last few months. This might have had an impact on these companies. Going forward, the profitability and performance of the company will depend on the strategies they adopt. That’s all for this post. Happy investing!
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