Shares of LT Foods hit a new high of Rs 135.80 as they jumped 4% on BSE in intraday trading on Thursday amid heavy volumes after the company announced a plan to Fund raising. Over the past three days, the stock has risen 12%, while it has climbed 54% over the past three months. By comparison, the BSE Sensex gained 7% in three months.
LT Foods, engaged in the manufacture and sale of rice under the Daawat brand, said on Tuesday that the board will also discuss future strategic plans, among others, possible fundraising, at its next meeting on Monday, October 31. 2022.
The company will also review and approve the unaudited financial results for the quarter ended September 30, 2022 and consider declaring an interim dividend on the same day.
As of 2:30 p.m., LT Foods was trading up 3% at Rs 133.75, against a 0.08% gain in the S&P BSE Sensex. Average over-the-counter trading volumes more than doubled, with a combined total of 8.1 million shares changing hands on the NSE and BSE up to the time of this writing.
LT Foods is the second largest branded basmati rice player in India with approximately 27% market share, and the top selling basmati brand in the US with 50% market share in FY22 , according to management. The company has a strong product portfolio of nine brands, with the flagship Dawaat brand having a high recall rate. The group has over five decades of experience in the basmati rice industry.
Basmati rice is a geographical indication product, grown only in certain regions of India and Pakistan, and is among the most expensive varieties in the world, accounting for only around 2% of domestic consumption.
“However, with the increase in disposable income and affluence, the demand for basmati rice is expected to increase in the medium term. In addition, the share of branded basmati (30% to 40%) is expected to increase in the medium term with awareness of the brand, which bodes well for LT Foods,” according to rating agency India Ratings and Research (Ind-Ra).