LT Foods stock rises 5% on Q4 results; MOFSL maintains 'Buy' call

Shares of LT Foods surged more than 5% to an intraday high of ₹383.80 on Friday, shortly after the release of their Q4 FY25 financial results, which aligned with market forecasts. As of 11:30 AM, the stock was trading at ₹372.05, reflecting a 2.45% increase from the previous closure of ₹363.25 on the National Stock Exchange. However, despite this uptick, the stock has experienced a decline of approximately 13% year-to-date.

The company, known for its long-standing presence in the global speciality rice and rice-based foods market for over 70 years, operates in more than 80 countries. Its brands include Daawat, Royal, Golden Star, and others. The total market capitalisation of LT Foods is currently ₹12,874.40 crore.

The financial results for the March 2025 quarter revealed an 8% rise in consolidated total revenue, amounting to ₹2,260 crore. Earnings before interest, tax, depreciation, and amortisation (Ebitda) increased by 11% to ₹290 crore, with profit after tax reaching ₹161 crore, marking a 7% year-on-year growth. Analysts at MOFSL highlighted the robust revenue growth driven by a 7% rise in Basmati and other speciality rice and a 10% increase in organic foods. They noted that the company's performance was buoyed by both domestic and international markets. MOFSL has maintained its 'Buy' rating for the stock with a target price of ₹470.

Looking ahead, MOFSL anticipates the company will continue to build on this momentum. "Going ahead, we expect this momentum to continue, led by improving volumes in the Basmati and other speciality rice segment, margin expansion supported by lower input prices and freight normalisation and an increasing mix of organic and convenience & health segments," the brokerage expressed.

LT Foods is expected to further expand its footprint in the organic food segment, leveraging the growing demand for health-conscious food options. The company’s strategic focus on improving volumes and optimising margins is set to support its long-term growth trajectory.