India's LT Foods gains after Motilal Oswal initiates with 'buy'

LT Foods

06/11/2024 09:07

** Shares of basmati rice producer LT Foods  LTOL.NS  rise
3.9% to 396.20 rupees, eyes best day in two months 
    ** Motilal Oswal initiates coverage of stock with "buy"
rating, PT of 520 rupees - a 36% premium on last close 
    ** Brokerage says LTOL's strong global presence augurs well
for it to gain from rise in domestic and global consumption of
basmati rice
    ** Adds LTOL's Daawat brand has 30% market share in India,
while Royal brand has over 50% market share in U.S. 
    ** Estimates a 14% annual growth rate for LTOL during
FY24-27 
    ** Sees climate risk for rice production, rising
competition, currency volatility as key downside risks 
    ** LTOL up ~95% YTD, on track to log biggest annual gain
since 2020
    ** Peers KRBL  KRBL.NS  and Kohinoor Foods  KOFO.NS  down
24% and ~10% YTD, respectively 

 (Reporting by Manvi Pant in Bengaluru)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))