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Last Updated on: 11 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

LT Foods Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 11, 2024, 12:00 am

Market Cap 13,873 Cr.
Current Price 400
High / Low448/150
Stock P/E22.8
Book Value 97.1
Dividend Yield0.38 %
ROCE21.1 %
ROE19.3 %
Face Value 1.00
PEG Ratio0.98

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for LT Foods Ltd

Competitors of LT Foods Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
GRM Overseas Ltd 1,442 Cr. 240289/11327.8 51.10.00 %12.9 %18.3 % 2.00
Freshtrop Fruits Ltd 122 Cr. 154273/121 1430.00 %6.40 %51.6 % 10.0
Chamanlal Setia Exports Ltd 1,686 Cr. 326345/18115.2 1380.69 %20.2 %17.4 % 2.00
Mangalam Global Enterprise Ltd 433 Cr. 26.332.0/14.420.0 8.420.08 %13.8 %15.3 % 2.00
LT Foods Ltd 13,873 Cr. 400448/15022.8 97.10.38 %21.1 %19.3 % 1.00
Industry Average3,402.91 Cr302.7532.31108.990.30%13.77%19.46%3.82

All Competitor Stocks of LT Foods Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,1281,1531,2131,3201,3681,5261,6111,7251,7781,8211,7781,9781,942
Expenses9921,0331,0831,1671,2191,3761,4451,5531,6131,6251,5641,7371,703
Operating Profit136120130153149151166172166196214240239
OPM %12%10%11%12%11%10%10%10%9%11%12%12%12%
Other Income116183011972234252620
Interest18191716171917182226221918
Depreciation25312929303529303235363636
Profit before tax9486102110103108129131133169181211204
Tax %26%31%26%27%25%30%26%27%25%22%24%26%25%
Net Profit6960768177759595100132137157153
EPS in Rs2.071.762.272.402.232.242.802.802.983.693.964.494.35

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,4222,2062,4592,7162,9553,2453,6143,8904,1354,7425,4276,9367,519
Expenses1,2581,9892,1932,4522,5982,8873,2373,4903,6684,1804,8356,2356,630
Operating Profit164217266264357358376400467562592701889
OPM %12%10%11%10%12%11%10%10%11%12%11%10%12%
Other Income-22221645-3848362133312371104
Interest10711711315114815714713913287698285
Depreciation343937475255506991108123127143
Profit before tax-083131111120194216214277398424563765
Tax %-10,000%27%35%31%39%33%33%36%28%27%27%25%
Net Profit-160857672129144137199289309423579
EPS in Rs-0.052.142.982.742.704.404.213.965.778.579.1411.6016.49
Dividend Payout %0%9%8%7%6%3%4%4%9%12%11%9%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)6100.00%41.67%-10.59%-5.26%79.17%11.63%-4.86%45.26%45.23%6.92%36.89%
Change in YoY Net Profit Growth (%)0.00%-6058.33%-52.25%5.33%84.43%-67.54%-16.49%50.12%-0.03%-38.31%29.97%

LT Foods Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:12%
5 Years:15%
3 Years:18%
TTM:14%
Compounded Profit Growth
10 Years:22%
5 Years:36%
3 Years:29%
TTM:35%
Stock Price CAGR
10 Years:43%
5 Years:76%
3 Years:80%
1 Year:125%
Return on Equity
10 Years:16%
5 Years:17%
3 Years:18%
Last Year:19%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 3:16 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital262626272732323232323535
Reserves2853654365106381,1471,2971,4491,7241,9662,7223,337
Borrowings1,4131,5021,6921,5971,6101,5481,6901,7641,5701,3201,221917
Other Liabilities2492992913304605295545737871,0421,3411,753
Total Liabilities1,9732,1932,4452,4642,7353,2563,5733,8184,1124,3595,3196,042
Fixed Assets3393503703613745666019068809059951,160
CWIP121915244028421733352741
Investments5576141436332925127183
Other Assets1,6171,8192,0532,0722,3082,6482,8942,8623,1713,3944,1704,657
Total Assets1,9732,1932,4452,4642,7353,2563,5733,8184,1124,3595,3196,042

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 104929722760103477445517258757
Cash from Investing Activity -52-58-54-83-233-137-83-101-145-395-201
Cash from Financing Activity -4532-235-13716044-404-346-358136-538
Net Cash Flow7-1787-1310-10-215017

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow164.00216.00265.00263.00356.00357.00375.00399.00466.00561.00591.00700.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days624843465247505537413532
Inventory Days238277249233231251247222267247254249
Days Payable343018273550373360749088
Cash Conversion Cycle265295273253248248260244244215199193
Working Capital Days213214227189185195206189176151138131
ROCE %12%13%13%14%16%14%12%13%14%14%17%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters56.81%56.81%56.81%56.81%56.82%56.82%51.00%51.00%51.00%51.00%51.00%51.00%
FIIs1.38%1.42%1.38%1.90%4.01%5.31%5.04%6.48%6.01%5.73%5.14%5.89%
DIIs3.38%3.38%3.39%3.09%3.28%3.30%3.00%3.29%5.08%5.12%4.08%5.67%
Public38.43%38.39%38.42%38.20%35.91%34.57%40.94%39.22%37.89%38.15%39.76%37.44%
No. of Shareholders1,44,6081,54,8331,71,4321,66,9731,51,9801,46,7731,50,0651,44,0321,53,3381,63,1961,77,9471,73,574

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
DSP Small Cap Fund10,551,0581.59214.410,551,0582024-10-090%
Motilal Oswal Nifty Microcap 250 Index Fund156,5110.513.1810,551,0582024-10-09-98.52%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)17.0912.509.138.575.77
Diluted EPS (Rs.)17.0912.509.138.575.77
Cash EPS (Rs.)20.2115.0313.6512.569.21
Book Value[Excl.RevalReserv]/Share (Rs.)98.6880.5567.1959.1050.00
Book Value[Incl.RevalReserv]/Share (Rs.)98.6880.5567.1959.1050.00
Revenue From Operations / Share (Rs.)223.83199.73169.69145.21129.63
PBDIT / Share (Rs.)28.4421.4219.3818.7015.90
PBIT / Share (Rs.)24.0417.7615.5415.3113.04
PBT / Share (Rs.)21.6515.4013.4012.588.78
Net Profit / Share (Rs.)15.8011.379.829.176.35
NP After MI And SOA / Share (Rs.)17.0911.609.138.575.77
PBDIT Margin (%)12.7010.7211.4212.8712.26
PBIT Margin (%)10.738.899.1610.5410.06
PBT Margin (%)9.677.707.898.666.77
Net Profit Margin (%)7.065.695.786.314.89
NP After MI And SOA Margin (%)7.635.805.385.904.45
Return on Networth / Equity (%)17.5914.6014.6215.6112.45
Return on Capital Employeed (%)21.2418.6319.2720.5719.92
Return On Assets (%)9.817.566.706.654.82
Long Term Debt / Equity (X)0.000.090.090.130.32
Total Debt / Equity (X)0.150.340.530.711.17
Asset Turnover Ratio (%)1.371.431.281.171.12
Current Ratio (X)2.081.961.781.701.52
Quick Ratio (X)0.420.430.450.410.51
Inventory Turnover Ratio (X)1.631.691.421.821.60
Dividend Payout Ratio (NP) (%)0.003.9710.9411.6711.26
Dividend Payout Ratio (CP) (%)0.003.017.718.367.53
Earning Retention Ratio (%)0.0096.0389.0688.3388.74
Cash Earning Retention Ratio (%)0.0096.9992.2991.6492.47
Interest Coverage Ratio (X)11.909.069.026.843.84
Interest Coverage Ratio (Post Tax) (X)7.615.815.574.362.57
Enterprise Value (Cr.)7069.644297.703671.063221.232468.69
EV / Net Operating Revenue (X)0.900.610.670.690.59
EV / EBITDA (X)7.165.785.925.384.85
MarketCap / Net Operating Revenue (X)0.840.480.460.400.15
Retention Ratios (%)0.0096.0289.0588.3288.73
Price / BV (X)1.941.221.251.060.43
Price / Net Operating Revenue (X)0.840.480.460.400.15
EarningsYield0.090.110.110.140.28

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of LT Foods Ltd as of October 11, 2024 is: ₹428.90

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 11, 2024, LT Foods Ltd is Undervalued by 7.22% compared to the current share price ₹400.00

Intrinsic Value of LT Foods Ltd as of October 11, 2024 is: ₹529.13

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 11, 2024, LT Foods Ltd is Undervalued by 32.28% compared to the current share price ₹400.00

Last 5 Year EPS CAGR: 23.37%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (3.38 cr) and profit (268.92 cr) over the years.
  1. The stock has a low average ROCE of 14.42%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 184.50, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 244.75, which may not be favorable.
  4. The company has higher borrowings (1,487.00) compared to reserves (1,323.00), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in LT Foods Ltd:
    1. Net Profit Margin: 7.06%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 21.24% (Industry Average ROCE: 13.77%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 17.59% (Industry Average ROE: 19.46%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 7.61
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.42
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 22.8 (Industry average Stock P/E: 32.31)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.15
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

No data availabale for About the Company
INDUSTRYADDRESSCONTACT
Agricultural ProductsUnit No. 134, First Floor, Rectangle - 1, New Delhi Delhi 110017ir@ltgroup.in
http://www.ltgroup.in
Management
NamePosition Held
Mr. Vijay Kumar AroraChairman & Managing Director
Mr. Ashwani Kumar AroraManaging Director & CEO
Mr. Surinder Kumar AroraManaging Director
Ms. Ambika SharmaIndependent Director
Ms. Neeru SinghIndependent Director
Mr. Satish Chander GuptaIndependent Director
Mr. Alrumaih Sulaiman Abdulrahman SNon Exe.Non Ind.Director
Mr. Abhiram SethLead Independent Director

FAQ

What is the latest fair value of LT Foods Ltd?

The latest fair value of LT Foods Ltd is ₹428.90.

What is the Market Cap of LT Foods Ltd?

The Market Cap of LT Foods Ltd is 13,873 Cr..

What is the current Stock Price of LT Foods Ltd as on 11 October 2024?

The current stock price of LT Foods Ltd as on 11 October 2024 is ₹400.

What is the High / Low of LT Foods Ltd stocks in FY 2024?

In FY 2024, the High / Low of LT Foods Ltd stocks is 448/150.

What is the Stock P/E of LT Foods Ltd?

The Stock P/E of LT Foods Ltd is 22.8.

What is the Book Value of LT Foods Ltd?

The Book Value of LT Foods Ltd is 97.1.

What is the Dividend Yield of LT Foods Ltd?

The Dividend Yield of LT Foods Ltd is 0.38 %.

What is the ROCE of LT Foods Ltd?

The ROCE of LT Foods Ltd is 21.1 %.

What is the ROE of LT Foods Ltd?

The ROE of LT Foods Ltd is 19.3 %.

What is the Face Value of LT Foods Ltd?

The Face Value of LT Foods Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in LT Foods Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE