Target: ₹518
CMP: ₹393.00
LT Foods (LTF) is a global consumer specialty company with an explicit focus on basmati rice, organic foods and ready-to-eat/cook (RTE/RTC) products. It has a presence in over 80 countries with significant regional exposure in the US, Europe, West Asia, etc.
Revenue grew 24 per cent year on year (normalised growth at 8 per cent excluding US tariff and Golden Star revenue) for Q3FY26, led by broad-based strength across geographies despite the US tariff headwind.
Gross margin improved 70 bps to 34.2 per cent, while EBITDA margin grew only 20 bps to 11.2 per cent.
LTF targets ₹1,000 crore each from the recently set-up manufacturing facility in the UK and the expanded distribution in Saudi Arabia in the next five years.
EBITDA margin is expected to improve as the company scales up its value-added segments. The RTC/RTE segment is projected to grow at about 35 per cent and is likely to achieve break-even at around ₹400 crore in revenue by FY27 (₹200 crore in FY25).
The strong focus on regional and product diversification is expected to support healthy earnings growth and re-rating. The US tariff has been reduced to 18 per cent, which will aid demand; however, a short-term margin impact is expected due to the high-cost inventory in the US. Currently, LTF has only less than 9 per cent exposure to West Asia. We value the stock at 17x on FY28 EPS (three-year average 17x) to arrive at a target price of ₹518 and recommend BUY due to healthy volume outlook.
Published on March 6, 2026
