LT Foods gained 2.39% to Rs 68.65 at 11:40 IST on BSE after the company commenced operations at its first rice processing plant in Europe at Rotterdam, Netherlands.
The announcement was made after market hours yesterday, 28 June 2017.Meanwhile, the S&P BSE Sensex was up 195.91 points, or 0.64%, to 31,030.23. The S&P Small-Cap index was up 195.86 points, or 1.29%, to 15,357.18.
On the BSE, 61,462 shares were traded in the counter so far, compared with average daily volume of 1.53 lakh shares in the past one quarter. The stock hit a high of Rs 69 and a low of Rs 67.05 so far during the day. The stock hit a record high of Rs 84.70 on 23 May 2017. The stock hit a 52-week low of Rs 21.11 on 9 November 2016.
The stock had underperformed the market over the past one month till 28 June 2017, falling 10.66% compared with 0.62% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, gaining 13.45% as against Sensex's 4.84% gains. The scrip also outperformed the market in past one year, jumping 178.45% as against Sensex's 16.25% gains.
The small-cap company has equity capital of Rs 26.67 crore. Face value per share is Re 1.
LT Foods has made an investment of $15 million in the plant with initial capacity of 60,000 tonnes and scope for further expansion in the future. The company plans to make its most popular 'Daawat' brand a household name in Europe using raw material from India. The move will benefit 5,000 farmer families in India with brown rice supply increasing from India.
LT Foods plant is the first rice processing plant by any Indian foods brand in Europe. LT Foods plans to expand its geographical footprint in important markets of Europe and UK through this plant by increasing its sales from the current 5,000 tonnes to 60,000 tonnes over the next 3 years.
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The company would be manufacturing a wide range of rice including popular varieties like Basmati, Thai, Jasmine and American rice from the new plant. Rotterdam, which is popularly known as the gateway to Europe will be a critical geographical location as it will give the company easy access to the whole of Europe and UK for its expansion plans.
LT Foods has collaborated with Rotterdam Partners, The Port of Rotterdam Authority and Netherlands Foreign Investment Agency (NFIA) for this initiative. LT Foods which is already a leading food brand in India and the number one speciality food brand in the US is aggressively expanding its geographical footprint to new territories globally. The company has already launched 'Daawat' brand in 6 new countries in 2017 and plans to expand its product offerings and portfolio globally.
On consolidated basis, LT Foods' net profit rose 507.7% to Rs 33.73 crore on 19.5% growth in net sales to Rs 962.15 crore in Q4 March 2017 over Q4 March 2016.
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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