We are analysing the latest quarter result wrt LT Foods Ltd which is an India-based company. The company is engaged in the manufacture and sale of rice under the brand DAAWAT. They also manufacture and market parboiled rice. Their product is marketed in more than 50 countries.
LT Foods - Q4 FY20 (Audited –Cons)
CMP: 23
Total revenue from operations 1,198 Cr 1,009 Cr (18.74%) YoY | 996 Cr (20.5%) QoQ
Year ending revenue: 4,146 Cr Vs. 3,890 Cr (6.51%)
Net Profit of 58.3 Cr 21.8 Cr (177.68%) YoY 48.1 Cr (20.83%) QoQ
Year ending Net profit: 199.3 Cr Vs. 137.4 Cr (45.21%)
EPS (in Rs.) 1.69
0.62 YoY | 1.42 QoQ
Year ending EPS: 5.77 Vs. 3.96
View: The result is above expectations and overall good. YoY revenue increased and profit more than doubles in YoY and also improved in QoQ.
Business Updates & Highlights:
Q4FY20 EBITDA is INR 150.1 Cr Vs. 97.5 Cr in Q4FY19 therefore up by 53.8% in YoY. FY20 EBITDA is around INR 508.4 Cr Cr Vs. 421.2 Cr in FY19 therefore up by 20.6%. EBITDA margin in FY20 is 12.2% Vs. 10.8% in FY19.
Financial
ROE and ROCE is around INR 9% and 12% respectively and book value per share is around INR 30 and share is currently trading at 0.8x of its book value. The company is currently trading at annualized PE of around 4.5 which is very fair as per industry benchmark. Promoter holding is around 56.8% in the
company which is good and stable (promoter has pledged around INR 10 Cr worth of share). FIIs and Mutual funds hold around 1.4% and 5% in the company. Cash and cash equivalent from operating activities as of March 2020 is around INR 477.7 Cr Vs. 102.5 Cr as of March 2019.
Position: Share strong support price is INR 22.5. Long term investors can continue with the company based on their risk appetite.
Share View: Share price high 32 (52 weeks) and now 24.5. LT Foods is primarily 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.
Opportunities: As per Q4 least impact due to the current Covid-19 pandemic situation. EBITDA margin also improved in YoY. The company has lots of good brand in its Kitty including Daawat, Royal, Heritage, etc. Company is a leading brand in India and No.1 specialty food brands in US.
Risk: Company has heavily corrected on past due to poor growth single digit on the topline. The operating profit margin was also corrected in the past many quarters.
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CMP: 23
Total revenue from operations 1,198 Cr 1,009 Cr (18.74%) YoY | 996 Cr (20.5%) QoQ
Year ending revenue: 4,146 Cr Vs. 3,890 Cr (6.51%)
Net Profit of 58.3 Cr 21.8 Cr (177.68%) YoY 48.1 Cr (20.83%) QoQ
Year ending Net profit: 199.3 Cr Vs. 137.4 Cr (45.21%)
EPS (in Rs.) 1.69
0.62 YoY | 1.42 QoQ
Year ending EPS: 5.77 Vs. 3.96
View: The result is above expectations and overall good. YoY revenue increased and profit more than doubles in YoY and also improved in QoQ.
Business Updates & Highlights:
Q4FY20 EBITDA is INR 150.1 Cr Vs. 97.5 Cr in Q4FY19 therefore up by 53.8% in YoY. FY20 EBITDA is around INR 508.4 Cr Cr Vs. 421.2 Cr in FY19 therefore up by 20.6%. EBITDA margin in FY20 is 12.2% Vs. 10.8% in FY19.
Financial
ROE and ROCE is around INR 9% and 12% respectively and book value per share is around INR 30 and share is currently trading at 0.8x of its book value. The company is currently trading at annualized PE of around 4.5 which is very fair as per industry benchmark. Promoter holding is around 56.8% in the
company which is good and stable (promoter has pledged around INR 10 Cr worth of share). FIIs and Mutual funds hold around 1.4% and 5% in the company. Cash and cash equivalent from operating activities as of March 2020 is around INR 477.7 Cr Vs. 102.5 Cr as of March 2019.
Position: Share strong support price is INR 22.5. Long term investors can continue with the company based on their risk appetite.
Share View: Share price high 32 (52 weeks) and now 24.5. LT Foods is primarily 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.
Opportunities: As per Q4 least impact due to the current Covid-19 pandemic situation. EBITDA margin also improved in YoY. The company has lots of good brand in its Kitty including Daawat, Royal, Heritage, etc. Company is a leading brand in India and No.1 specialty food brands in US.
Risk: Company has heavily corrected on past due to poor growth single digit on the topline. The operating profit margin was also corrected in the past many quarters.
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