LT Foods shines on tie-ups

LT Foods has signed a joint venture agreement for South India rice business. Future Consumer has entered into a joint venture agreement with LT Foods and Genoa Rice Mills for undertaking the business of manufacturing, marketing, sales, sourcing and distribution of Sona Masoori and regional South Indian rice. LT Foods and Future Consumer each will hold 50 per cent of the paid-up share capital of Genoa.

On the financial front, LT Foods’ revenue increased 12.83 per cent to Rs 524 crore in Q2FY17 as compared to the same period in the previous financial year. The company’s EBITDA too rose 9.32 per cent to Rs 45 crore in Q2FY17 on a yearly basis. Its PAT also increased 21.37 per cent to Rs 8.47 crore in Q2FY17 as compared to the same period in the previous fiscal year.

The share price of LT Foods increased 10.96 per cent on bourses in early trades and is trading at Rs 280 on intra-day basis. The company’s book value is Rs 201.31. Its share price is trading at PE multiple of 9.83x. LT Foods has given dividend yield of 0.53 per cent.