LT Foods rose 3.59% to Rs 56.25 after India Ratings and Research and CRISIL upgraded the credit ratings of the company.
In a BSE filing made during market hours today, the company said that India Ratings and Research has assigned LT Foods a long-term issuer rating of 'IND A' with a 'positive' outlook.
Offering the ratings rationale, the ratings agency said that the 'positive' outlook reflects India Ratings' expectation of a sustained improvement in LT Foods' financial profile, resulting from an increase in the EBITDA and a stable working capital cycle, translating into lower debt levels.
Separately, after market hours yesterday, LT Foods said that CRISIL revised its outlook on the long-term bank facilities of the company to 'positive' from 'stable' while reaffirming the rating at 'CRISIL A-'. The short-term rating has been reaffirmed at 'CRISIL A2+'.
The outlook revision reflects CRISIL's expectations that the group's business and financial risk profiles will continue to improve over the medium term.
LT Foods is a branded specialty foods company. The company is engaged in milling, processing and marketing of branded and non-branded basmati rice, and manufacturing of rice food products in the domestic and overseas market. Its geographical segments include India, North America and Rest of the world.
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The company's consolidated net profit jumped 71% to Rs 72.51 crore on a 24.4% rise in net sales to Rs 1,208.67 crore in Q2 FY21 over Q2 FY20.
The stock has added 10.40% in two sessions from its recent closing low of Rs 50.95 on 21 December 2020.
On a year-to-date (YTD) basis, the stock has soared 148.90% while the benchmark S&P BSE Sensex has added 12.29% during the same period.
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