LT Foods Ltd.
NSE: LTFOODSLT Foods Ltd.: A 30-second snapshot
LT Foods (LTFOODS) reported FY26 revenue of ₹11,023 crore, up 26% YoY, with 5-year earnings CAGR of 70.7% and a profit margin of 6.3%. The stock trades at ₹409.35, below its 200-DMA of ₹412.39 and 20.5% off its 52-week high, with a trailing PE of 22.7x versus a forward PE of 14.1x on current-year estimates. The D/E ratio of 28.49 is the dominant structural feature — elevated even for an inventory-heavy basmati rice processor — and coexists with a revenue growth trajectory that is among the strongest in recent company history.
P/E
22.7
Forward P/E
14.1
ROE
—
Debt / Equity
28.49
Profit Margin
+6.3%
Div. Yield
+1.0%
5Y ROE > 15%
2/5
5Y FCF > 0
4/5
Quality
62/100
News
8 headlines · 7 positive · 0 negative
LTFOODS: Revenue up 26% YoY, strong global growth, margins pressured by tariffs, outlook remains positive - TradingView
TradingView
LTFOODS: Revenue up 26% YoY, strong global growth, margins impacted by tariffs, outlook remains positive - TradingView
TradingView
LTFOODS: FY26 revenue up 26% to ₹11,023 crore, led by rice segment growth and brand investments - TradingView
TradingView
LTFOODS: Strong revenue and profit growth, robust cash flow, and a final dividend recommended - TradingView
TradingView
LT Foods March-Quarter Consol Net Profit 1.36 Billion Rupees - TradingView
TradingView
Recent context
- ·FY26 annual revenue reached ₹11,023 crore (up 26% YoY), driven by rice segment growth and brand investment; Q4 FY26 consolidated net profit was reported at ₹1.36 billion, with management commentary citing tariff headwinds as a margin pressure factor.
- ·News flow from May 2026 is concentrated around the FY26 results release, with 7 of 8 tracked headlines coded positive and none negative — the tariff impact on margins is the one identified risk thread in otherwise constructive coverage.
- ·Only 2 analysts cover the stock with no published consensus rating; the forward PE of 14.1x versus trailing 22.7x implies the analyst base models meaningful earnings growth in the current fiscal year, though the sparse coverage limits the reliability of that consensus.
Strengths
- +5-year revenue CAGR of 23.8% and earnings CAGR of 70.7% reflect sustained top-line expansion and improving profitability scale over a multi-year period.
- +FCF was positive in 4 of the available measurement years, and the earnings consistency score of 79 indicates reasonable earnings regularity despite the capital-intensive business model.
- +Trailing PE of 22.7x and forward PE of 14.1x represent a significant compression versus large-cap FMCG peers — Nestle trades at 78.7x, Britannia at 51.3x, and Hindustan Unilever at 50.2x — placing LTFOODS at rank 2 of 6 peers by PE (lower is cheaper).
- +FY26 results include strong global growth contribution and a final dividend, with news flow across 8 recent articles skewed 7 positive and 0 negative, reflecting a period of operationally constructive reporting.
Weaknesses
- −D/E of 28.49 is the highest structural risk point — substantially above the FMCG median and above levels typically seen even among working-capital-heavy agri processors; this leverage amplifies downside in periods of rising interest rates or commodity disruption.
- −Profit margin of 6.3% is narrow for an FMCG-classified business, and tariff-related margin pressure was specifically noted in FY26 results, leaving limited earnings buffer if input costs rise further.
- −ROE cleared the 15% threshold in only 2 of the measured years, and current ROE data is unavailable — capital efficiency relative to peers cannot be fully benchmarked, and the quality score of 53 ranks third of 6 in the sector cohort.
- −Stock has been below the 200-DMA and is 20.5% off its 52-week high, with near-flat 3-month performance (-0.98%) — price action has not tracked the reported revenue and earnings growth trajectory over the past year.
Open questions
- ?Does the D/E of 28.49 reflect structural balance-sheet leverage or short-cycle working capital that rotates seasonally with paddy procurement — and how has the net debt position moved over the past 3 fiscal years?
- ?The forward PE of 14.1x implies a significant earnings step-up from the current year: what operating assumptions (volume, realization, margin recovery) underpin that estimate, and how sensitive is it to tariff outcomes?
- ?LT Foods ranks second-cheapest by PE in its FMCG peer group but has a lower quality score (53) than Nestle (61) and Hindustan Unilever (58) — what accounts for the quality gap, and is it structural or period-specific?
- ?FCF was positive in 4 of the available years, yet D/E remains elevated: where is the cash going — capex, working capital buildup, dividends, or debt service — and what does the trajectory of net debt look like over the next 2 years?
Peer comparison: FMCG
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| LTFOODS | LT Foods Ltd.You're viewing | 22.7 | — | 53 |
| Industry avg | across 5 peers | 55.7 | +39.5% | 52 |
| NESTLEIND | Nestle India Ltd. | 78.7 | +76.3% | 61 |
| HINDUNILVR | Hindustan Unilever Ltd. | 50.2 | +21.6% | 58 |
| BRITANNIA | Britannia Industries Ltd. | 51.3 | +53.3% | 50 |
| TATACONSUM | Tata Consumer Products Ltd. | 79.4 | +6.9% | 45 |
| ITC | ITC Ltd. | 19.0 | — | 44 |
Technical state
Current price
₹409.35
SMA 50
₹402.27
SMA 200
₹412.39
RSI (14)
46.6 (neutral)
From 52w high
-20.5%
1Y return
+14.6%
3M return
-1.0%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity ratio of 28.49 is far above FMCG sector norms. Even accounting for working-capital-intensive paddy inventory financing typical of basmati processors, this level of leverage amplifies earnings sensitivity to interest rate movements and commodity price cycles. FCF was positive in 4 of the available years, but the debt quantum relative to equity remains a material structural concern.
- mediumROE data is unavailable, and the threshold of 15% was cleared in only 2 of the measured years. With a quality score of 53 out of 100 and limited visibility into capital efficiency, full quality assessment is constrained. Profit margin stands at 6.3%, which is narrow for an FMCG-classified company and leaves limited buffer against input cost or tariff-related pressure.
- mediumStock at ₹409.35 is below the 200-DMA of ₹412.39 and sits 20.5% below its 52-week high. The 3-month price change of -0.98% shows a flat-to-negative near-term trend despite the stock being above the 50-DMA (₹402.27). RSI at 46.6 is in neutral territory.
- lowAnalyst coverage is very sparse: only 2 analysts tracked with no consensus rating available. Price-change-1Y data is missing for all 5 sector peers, preventing a relative price-performance comparison across the FMCG cohort.
Cross-section contradictions
- 5-year earnings growth of 70.7% and FCF positive in 4 of measured years coexist with a D/E of 28.49 — unusually high leverage for a company reporting strong profit expansion, raising the question of whether earnings are being partially funded by debt rather than fully by retained cash generation.
- FY26 revenue growth of 26% YoY and news sentiment skewed 7-to-0 positive-to-negative are not reflected in the 12-month price return of +14.6%, which underperforms a sector median context where the stock trades at a PE of 22.7 versus peers such as Nestle (78.7x) and Britannia (51.3x) — the wide PE gap to large-cap peers has not closed despite the strong growth print.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days