LT Foods rose 2.28% to Rs 262.85 at 12:14 IST on BSE, extending yesterday's 2.43% rise triggered by the company entering into a joint venture with a Japanese firm.
The announcement was made during trading hours yesterday, 24 November 2016. Shares of LT Foods rose 2.43% to Rs 257 on that day. The stock has risen 4.76% in two sessions from its close of Rs 250.90 on 23 November 2016.Meanwhile, the BSE Sensex was up 276.63 points, or 1.07%, to 26,136.80.
On BSE, so far 4,566 shares were traded in the counter, compared with average daily volume of 2,139 shares in the past one quarter. The stock hit a high of Rs 267.15 and a low of Rs 260 so far during the day. The stock hit a record high of Rs 319.20 on 20 July 2016. The stock hit a 52-week low of Rs 180 on 12 February 2016. The stock had outperformed the market over the past 30 days till 24 November 2016, falling 5.53% compared with the 7.10% decline in the Sensex. The scrip had, however, outperformed the market in past one quarter, falling 11.32% as against Sensex's 6.92% decline.
The small-cap company has equity capital of Rs 26.66 crore. Face value per share is Rs 10.
LT Foods, a global specialty foods company with leading consumer brands including 'Daawat', 'Royal', 'Devaaya' among others in India as well as US, entered into a joint venture (JV) with Kameda Seika of Japan to manufacture and market rice based snacks in India.
Kameda is the global leader in rice based snacks and it commands about 30% market share in Japan and has a prominent presence in the gluten free cracker market in the United States. LT Foods and its partner Kameda believe the large and expanding urban middle-class in India are ripe for a healthy and tasty alternative to fried potatoes and wheat based snacks.
Through this partnership, the JV will introduce rice based snacks with proprietary Japanese technologies developed over 30 years. These products have been highly successful in South East Asia and the US. The joint venture plans to launch four different flavours customized for palate of Indian consumers. Once JV has cultivated and established a stable position enough in Indian market, the JV will look at exporting the product to regional markets in South Asia.
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The JV will start manufacturing the snack range in Sonepat (Haryana) later in the next financial year. The JV will become pioneer in the rice based snack food category.
On consolidated basis, LT Foods' net profit rose 9.36% to Rs 25.01 crore on 20.41% growth in net sales to Rs 829.24 crore in Q2 September 2016 over Q2 September 2015.
LT Foods has a diversified product portfolio of branded basmati rice, value-added staples and organic food. While Basmati rice remains its core proposition, the company's vision is to emerge as a global specialty food company, admired for its wide range of quality food products.
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