Lt foods (daawat)

Stock Opportunities
205

This is my opinion, correct me if I am wrong:

  1. The PE is in 10 Range - because a few factors like: Previously, Sector leader was KRBL (based on sales & OPM) and there is no coverage for ltfoods from big institutions, they always used to see like cyclical play(due to imports restrictions by govt, monsoons and so on). Ltfoods had a consistent earnings and became a sector leader, even institutions entered in the company then the company had a re-rating phase now.
  2. I guess next 4-5 quarters the current valuation are sustainable, because the rice procurement costs are low, which can increase margins upto 2% in the near future. These margins are sustainable until there are no unforeseen issues come like any sudden climate changes(especially Haryana & punjab states)/ logistics issue / Trump tarrifs / basmati export restrictions.
  3. We cannot say it is commodity or branded it is in between - they can pass on the cost only till some extent like branded in phases - remaining they have to bear some costs like commodity.
  4. Always there will be uncertainties like farm laws/monsoon effects (this is part of game).
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Nov Dec January

Director Abhiram seth has bought approx 20K shares

also promoter bought some chillar qty ,

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207

Depreciating Rs may be beneficial for exporter particularly lt foods

But generally lt foods do currency hedge in order to shield from currency fluctuations
They have mentioned in old con calls

Now how much hedge and how its done that I am unaware

But yes Rs depreciation may be helpful
Depends upon wheather they have hedged and nature of hedge

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small amount of promoter buying today

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Anybody saw very high tax deduction on dividend from LT Foods? I am seeing 55% tax being deducted.
Other companies’s dividend email mentioned 0% tax deduction.

Thanks,
Sagar

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India lifts export ban on broken rice good news for LT Foods

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