LT Foods Limited (LTFOODS) AI Stock Analysis

• Market Cap: ₹131.61B
• Dividend Yield: 0.74%
• Average Volume (3M): 42.13K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 1.53
• Revenue Growth: 18.77%
• EPS Growth: 5.76%
• Country: IN
• Employees: 1,188
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: FMCG
• EPS (TTM): 4.70
• Shares Outstanding: 347,252,930
• 10 Day Avg. Volume: 56,714
• 30 Day Avg. Volume: 42,128
• PEG Ratio: 10.45
• Price to Book (P/B): 3.27
• Price to Sales (P/S): 1.44
• P/FCF Ratio: 81.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 20.92
• Revenue Forecast (FY): ₹108.56B

• Rating: 69 Neutral
• Price Target: ₹430.00 ▲(2.56% Upside)
• Action: Downgraded Date: 03/07/26
• Date: Action: Downgraded 03/07/26

The score is primarily supported by strong profitability and revenue growth with moderate leverage, but is held back by a sharp decline in free cash flow and a weaker technical setup (below key moving averages with neutral momentum). Valuation is moderate and the dividend yield is low.

Positive Factors

Revenue & Margin Strength

Consistent top-line growth with high gross and EBIT margins indicates durable operational efficiency and pricing power in core rice products. These structural margins support reinvestment in branding and processing, helping sustain profitability across cycles and expanding market reach over the next 2–6 months.

Low Leverage & Strong ROE

A low debt-to-equity ratio and double-digit ROE provide steady financial flexibility and signal efficient capital use. This capital structure reduces interest burden risk and preserves capacity to fund working capital or selective investments without jeopardizing balance-sheet stability in medium term scenarios.

Branded Basmati Portfolio & Global Reach

A recognized basmati brand and presence across domestic and export channels creates structural differentiation. Brand-led pricing, product ageing/processing know-how and distribution reach support sustainable margins and demand resilience versus commodity-only peers over the coming months.

Negative Factors

Sharp Free Cash Flow Drop

A near 60% fall in free cash flow materially reduces financial flexibility for capex, working capital and shareholder returns. If this trend persists, the company may need to curtail investments or access external funding, limiting its ability to sustain growth initiatives and absorb shocks.

Weaker Cash Conversion

An OCF-to-net-income ratio below 1 and noted cash-quality weakness imply earnings aren’t fully converting to cash, likely from working-capital or inventory timing. This structural conversion shortfall makes reported profits less reliable as a source of funding for expansion or debt reduction.

Moderate Equity Ratio

A mid-range equity ratio signals a balanced but not robust equity cushion. That limits headroom for large M&A or aggressive balance-sheet leverage and means the firm must rely more on retained earnings for growth, which could slow strategic moves or increase vulnerability in downturns.

LT Foods Limited Business Overview & Revenue Model

Company Description

LT Foods Ltd. is a leading global FMCG company in the food and consumer goods space. It is a leading player globally in the specialty Rice and rice-based foods business for over the last 70 years.

How the Company Makes Money

LT Foods generates revenue through multiple streams, primarily from the sale of its rice products, which include both branded and non-branded options. The company's flagship brand, 'Daawat,' plays a significant role in driving sales in the premium rice segment. Additionally, LT Foods has expanded its revenue model by diversifying into value-added products such as ready-to-eat meals and organic food, which contribute to higher profit margins. The company also benefits from strategic partnerships with retailers and distributors, enhancing its market reach. Furthermore, export activities to various international markets provide additional revenue opportunities, leveraging the growing global demand for quality rice products.

LT Foods Limited Financial Statement Overview

Summary

Strong income statement strength (revenue +13.3%, gross margin 34.5%, net margin 6.9%, EBIT margin 28.9%) and a stable balance sheet (D/E 0.33, ROE 15.7%). The main offset is weaker cash flow quality, with free cash flow down 59.7% year over year despite a healthy operating cash flow to net income ratio (0.76).

Income Statement

LT Foods Limited has demonstrated strong revenue growth, with a significant increase of 13.3% in the latest year. The Gross Profit Margin improved to 34.5% in 2025, indicating efficient cost management. The Net Profit Margin of 6.9% shows profitability, supported by an impressive EBIT Margin of 28.9%. These metrics highlight the company's solid profitability and growth trajectory.

Balance Sheet

The company's Debt-to-Equity Ratio has been managed well, standing at 0.33, indicating balanced leverage. Return on Equity is strong at 15.7%, reflecting efficient use of equity to generate profits. However, the Equity Ratio is moderate at 51.9%, suggesting a balanced capital structure but room for improvement in asset financing through equity.

Cash Flow

Free Cash Flow decreased significantly, showing a decline of 59.7% from the previous year. However, the Operating Cash Flow to Net Income Ratio is healthy at 0.76, indicating strong cash generation relative to net income. The company needs to improve its free cash flow consistency to enhance financial flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	97.78B	87.49B	78.17B	69.55B	54.33B	47.42B
Gross Profit	31.56B	30.09B	25.39B	23.78B	18.19B	15.76B
EBITDA	11.38B	9.86B	9.32B	6.85B	5.72B	5.71B
Net Income	6.36B	6.05B	5.93B	4.03B	2.92B	2.74B
Balance Sheet
Total Assets	76.35B	74.23B	60.44B	53.21B	43.60B	41.16B
Cash, Cash Equivalents and Short-Term Investments	6.13B	1.43B	496.49M	322.17M	320.81M	180.83M
Total Debt	18.04B	12.61B	9.17B	12.21B	13.20B	15.70B
Total Liabilities	34.47B	35.69B	26.17B	25.24B	22.11B	22.26B
Stockholders Equity	41.87B	38.54B	33.72B	27.57B	19.98B	17.55B
Cash Flow
Free Cash Flow	4.81B	1.54B	5.54B	1.04B	3.60B	3.31B
Operating Cash Flow	6.92B	3.93B	7.57B	2.58B	5.17B	4.45B
Investing Cash Flow	-6.11B	-3.61B	-2.01B	-3.95B	-1.45B	-999.35M
Financing Cash Flow	3.04B	299.10M	-5.38B	1.36B	-3.58B	-3.46B

LT Foods Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 419.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LTFOODS, the sentiment is Negative. The current price of 419.25 is above the 20-day moving average (MA) of 393.86, above the 50-day MA of 388.11, and below the 200-day MA of 422.53, indicating a bearish trend. The MACD of -4.05 indicates Positive momentum. The RSI at 44.84 is Neutral, neither overbought nor oversold. The STOCH value of 26.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:LTFOODS.

LT Foods Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LTFOODS	69 Neutral	₹131.61B	21.49	―	0.74%	18.77%	5.76%
BECTORFOOD	61 Neutral	₹56.23B	46.45	―	0.45%	10.82%	-8.21%
CELLO	61 Neutral	₹93.50B	47.06	―	0.27%	11.42%	-4.32%
CROMPTON	57 Neutral	₹156.66B	41.30	―	1.16%	0.73%	-5.88%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
TARSONS	55 Neutral	₹9.80B	61.62	―	0.86%	14.37%	-40.47%

LT Foods Limited Corporate Events

LT Foods to Form Dubai-Based Wholly Owned Subsidiary for Global Strategic Services

LT Foods Limited is setting up a new wholly owned subsidiary in Dubai, UAE, named LTF Global Investments L.L.C., with a capital of AED 3 million, to support and synchronize its international food businesses. The subsidiary will provide global strategic services to LT Foods group companies across key overseas markets, aiming to improve operating efficiencies and synergies, and the investment, treated as a related-party transaction, will be executed on an arm’s length basis through a 100% cash-funded equity subscription, underscoring the company’s focus on strengthening global operations and centralized strategic oversight.

LT Foods Appoints New COO for Middle East Expansion

LT Foods Ltd has appointed Mr. Rohit Jaiswal as the Chief Operating Officer of its Middle East subsidiary, LT Foods Middle East DMCC. This strategic move is part of the company’s efforts to drive growth and regional expansion in the Middle East and Africa, leveraging Mr. Jaiswal’s extensive experience in the FMCG industry to enhance capability building, strengthen partnerships, and introduce innovative growth strategies.