Who wrote this article?

Aakash Agarwal, Capitalmind's research team.

Porinju’s entry into LT Foods (maker of Daawat Basmati) drives the stock up 17%

11 Jul 2016Aakash Agarwal2 min read

Quick Facts

What is "Porinju’s entry into LT Foods (maker of Daawat Basmati) drives the stock up 17%" about?
What category is this article in?: Stocks
Who wrote this article?: Aakash Agarwal, Capitalmind's research team.
When was this article published?: Published 11 July 2016.
How long does this article take to read?: 2 min read
What topics does this article cover?: DAAWAT, Porinju Veliyath
What does the "Disclaimer" section say?: Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion.

LT Foods launched the ‘Daawat’ (ranked #2 among basmati rice brands in India) brand in 1985 and was founded by the Arora Family in the 1950s. The company is now a leading branded speciality rice player with a combined capacity of 82 TPH capacity across 5 manufacturing facilities and 2 packaging facilities in the US.

LT Fast Foods Products

LT foods is placed in a prime position as the company continues to fulfill the global demand for its “Daawat” Basmati with #1 and #2 market position in 7

Countries including India & US.

Today the company is present in over 60 countries with a strong brand and product base. India consumed 97mn MT i.e. 20% of global rice consumption while the Global rice consumption in 2014-15 was estimated to be 483mn MT valued at $240 billion. Market Share of Daawat in Branded rice market in India improved from 11.9% in 2010 to 17.9% in 2015.

The company also has a JV with Kishore Biyani’s Future Group for sourcing, manufacturing, marketing, sales, and distribution of regional rice like sona masoori rice/ south Indian rice.

The company reported a Net Profit of Rs. 72.4 crore for the year ended 31-Mar-16 against 76.4 for the year ended 31-Mar-15 (complete results here).

PMS Equity Intelligence headed by Ace Investor Porinju Veliyath purchased 438,011 shares representing 1.64% of the share capital. This stake was sold by India Agri Business Fund which held 3,776,253 shares representing 14.16% of the share capital as of 31-Mar-16.

Source: Investor Presentation

Disclaimer

Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion.

Disclosure: The authors at Capital Mind have positions in the market and some of them may support or contradict the material given above, or may involve a direction derived from independent analysis.