![](https://fundsindia.com/blog/wp-content/uploads/2024/06/LT-Foods-without-CTA-1024x512.png)
L T Meals Ltd. – Farm to Fork
Integrated in 1990, LT Meals Ltd. is a worldwide shopper meals firm specializing in basmati and different specialty rice, natural meals, components, and ready-to-eat/ready-to-cook segments. It’s the main rice model in India and the No. 1 specialty meals model within the US, with flagship manufacturers like ‘Daawat’ and ‘Royal’. The corporate holds a market share of over 29% in India and practically 50% within the US basmati market, distributing its merchandise throughout 80+ international locations.
![](https://fundsindia.com/blog/wp-content/uploads/2024/06/image-14.png)
Merchandise and Companies
- Rice Portfolio: Consists of brown, white, steamed, parboiled, natural, and fast cooking brown flavored rice underneath manufacturers like Daawat, Royal, Heritage, Gold Seal Indus Valley, 817 Elephant, Devaaya, and Rozana.
- Natural Meals: Includes rice, soya, pulses, oil seeds, cereal grains, spices, and nuts.
- Rice-Primarily based Comfort Merchandise: Sauté sauces, cuppa rice, ready-to-heat merchandise, fortified rice, and rice-based premium snacks.
![](https://fundsindia.com/blog/wp-content/uploads/2024/06/image-15.png)
Subsidiaries: As of FY23, LT Meals has:
- 15 subsidiaries
- 3 affiliate corporations
- 3 joint ventures
Development Methods
- Established Model: Sturdy portfolio with manufacturers like Daawat and Royal; home market share at 30.1% with a quantity development of 11% in FY24.
- International Market Dominance: Increasing product portfolio and effectivity; important development within the US and Center East markets.
- Strategic Offers and Enlargement: Entered new markets and strategic offers, together with with SALIC and in international locations like Tanzania and Zambia.
- New Facility: Upcoming facility within the UK to reinforce manufacturing capabilities.
Monetary Highlights
Q4FY24
- Income Development: 14% YoY improve to Rs. 2,092 crore in Q4FY24 from Rs. 1,835 crore in Q4FY23.
- EBITDA Enchancment: Grew by 25% to Rs. 262 crore in Q4FY24 from Rs. 210 crore in Q4FY23.
- EBITDA Margin Enlargement: Elevated by 110 bps to 12.5% on account of decrease enter prices, greater realisation, and normalised freight prices.
- Web Revenue Improve: 14% rise to Rs. 150 crore in Q4FY24 from Rs. 132 crore in Q4FY23.
FY24
- Income Development: ₹7,822 crore, a rise of 12% YoY
- Basmati and Specialty Rice Section: Grew by 17%
- Prepared-to-Eat and Prepared-to-Cook dinner Section: Grew by 23%
- Working Revenue: ₹988 crore, up 33% YoY
- Web Revenue: ₹598 crore, a rise of 41% YoY
![](https://fundsindia.com/blog/wp-content/uploads/2024/06/image-16.png)
Monetary Efficiency (FY21-24)
- Income and PAT CAGR: 18% and 29% respectively, over three years.
- Common ROE and ROCE: Roughly 18% for FY 21-24 interval.
- Capital Construction: The corporate maintains a strong capital construction with a debt-to-equity ratio of 0.27.
![](https://fundsindia.com/blog/wp-content/uploads/2024/06/image-17.png)
Trade outlook
- The Indian meals processing sector is a precedence underneath the “Make in India” initiative.
- Accounts for 32% of the nation’s complete meals market, ranked fifth globally.
- Important potential for worth addition, with exports of 11.1 Mn Tonnes of non-basmati rice and 5.2 Mn Tonnes of basmati rice in FY 23-24.
- Rising demand for natural merchandise, anticipated to rise with a CAGR of 25.25% from 2022-27.
Development Drivers
- FDI: 100% FDI permitted underneath the automated route in meals processing industries.
- Price range Allocation: ₹3,290 crore allotted for the Ministry of Meals Processing Industries within the Interim Price range 2024-25, a 13% improve.
- Market Measurement: Projected to succeed in US$ 1,274 billion by 2027 from US$ 866 billion in 2022.
Aggressive Benefit
KRBL is the one listed competitor of LT Meals at a comparable market cap and vary of operations. LT Meals reveals greater return ratios and secure income development, indicating higher monetary stability and effectivity.
![](https://fundsindia.com/blog/wp-content/uploads/2024/06/image-18-1024x118.png)
Outlook
- Model Presence: Deal with model constructing, innovation, and worldwide enlargement.
- Development Targets: Aiming for a 5-year income CAGR of 10-12%, with a plan to extend the 5-year EBITDA margin by 140-150 foundation factors.
- Return Ratios: Concentrating on ROCE of 23% and ROE of 20% by FY24-25.
- Challenges: Navigating points like anti-dumping obligation within the soya market and margin pressures from freight prices.
![](https://fundsindia.com/blog/wp-content/uploads/2024/06/image-19-1024x712.png)
Valuation
LT Meals Ltd. has strong development prospects given its robust concentrate on strengthening manufacturers, distribution, and area & product diversification. We advocate a BUY score within the inventory with the goal value (TP) of Rs. 315, 11x FY26E EPS.
Dangers
- Foreign exchange Danger: Publicity on account of important operations in international markets.
- Socio-Financial Danger: Potential influence from socio-economic instability resulting in elevated enter prices.
Notice: Please observe that this isn’t a suggestion and is meant just for academic functions. So, kindly seek the advice of your monetary advisor earlier than investing.
Recap of our earlier suggestions (As on 14 June 2024)
![](https://fundsindia.com/blog/wp-content/uploads/2024/06/image-20-1024x223.png)
Motherson Sumi Wiring India Ltd
Different articles it’s possible you’ll like
Put up Views:
198