4th April 2018
Initiating Coverage I Sector: Consumer Staples
LT Foods
BSE SENSEX
33,019
S&P CNX
10,128
CMP: INR 88
TP: INR 125 (+42%)
Buy
A CONSUMER STORY IN THE MAKING
LT Foods Ltd. (LTFL) is one of the leading basmati rice players in India
having a strong foothold both in exports (55% of FY17 revenue) &
domestic market (45%). Key brands include Daawat (leading brand in
India), Royal (#1 brand in USA) and ecoLife (organic food). With growing
global demand for basmati and limited supply, we expect LTFL to
witness steady volume growth with improving realizations on back of
increased branded business. We forecast 12.2%/25.7% revenue/adj.
PAT CAGR over FY17-20E and an EBITDA margin improvement of 127bps
to 12.5%. We initiate coverage with a BUY rating valuing the stock at
12x FY20E EPS of INR10.4 with target price of INR125.
Domestic consumption to see continued demand growth:
Domestic
market remains a key growth driver for the branded basmati rice
players like LTFL as the Indian consumers move towards branded foods
on the back of rising affluence. The shift from unbranded basmati
(~73% in FY17) to branded is expected to continue due to better quality.
We expect LTFL to be one of the key beneficiaries of this changing
industry dynamics owing to its strong brand positioning, diverse
product portfolio catering varied price points and wide distribution
network.
Global expansion - Augurs well to tap lucrative markets:
Recently
LTFL set up a rice processing plant of 60,000 MT in Rotterdam
(Netherlands) to tap the European market. In FY17, it acquired Gold
Seal Indus Valley and Rozana brand from HUL in order to strengthen
its footprint in lucrative Middle East. Owing to healthy demand growth
across regions viz. USA (strong brand recall), Europe (leadership
position and new plant commercialization), Middle East (entry via
brand acquisitions from HUL), we expect healthy revenue growth in
exports.
Organic food and value added products- untapped potential:
LTFL has
also diversified into value added products (saute sauces, Rice based
snacks in JV with Kameda) and organic foods (brand ecoLife) which
are high growth segments for the company. We expect growth to be
largely driven by rising health awareness, changing lifestyle and limited
competition.
Valuation:
LTFL currently trades at 10.9x/8.5x on FY19/20 P/E. LTFL has
shown consistent revenue growth and profitability improvement over
years on account of rising share of branded business (resulting in
stable margins), geographical expansion and product innovation
(organic foods, value added products) leading to significant re-rating
in its valuation. Given LTFL's increased focus on branded basmati rice
and organic food business, we believe the company is becoming a
strong consumer story in the making. We initiate coverage with a BUY
rating valuing the stock at 12x FY20E EPS with a target price of INR125.
Stock Info
Bloomberg
Equity Shares (m)
52-Week Range (INR)
1m/6m/12m Rel. Per (%)*
M.Cap. (INR b)
M.Cap. (USD b)
Avg Turnover, INR m
Free float (%)
* relative to BSE Sensex
LTFO IN
320
57 / 110
-1/ 38 / 26
28.2
0.4
18.2
44
Financials Snapshot (INR b)
Y/E Mar
2018E
Net Sales
36.7
EBITDA
4.1
PAT
1.8
EPS (Rs)
6.7
EPS Growth (%) 27.9
BV/Share (Rs)
46.0
P/E (x)
13.2
P/BV (x)
1.9
EV/EBITDA (x)
8.7
Div payout (%)
4.3
RoE (%)
19.0
RoCE (%)
10.6
2019E
41.1
4.9
2.2
8.1
20.2
53.7
10.9
1.6
7.2
4.5
16.2
11.0
2020E
46.5
5.8
2.8
10.4
29.1
63.7
8.5
1.4
6.1
4.1
17.7
12.5
Shareholding pattern (%)
As On
Promoter
MFs
FPIs
Others
Dec-17
56.0^
13.9
3.2
26.9
Sept-17
67.2
0.0
2.5
30.4
Jun-17
67.2
0.0
2.0
30.8
^due to dilution via QIP of INR4,000mn
Note:7.25% of the promoter shares are pledged
Investors are advised to refer through
disclosures made at the end of the
Research Report.
Siddhartha Khemka
siddhartha.khemka@motilaloswal.com
Alpesh Thacker
Alpesh.thacker@motilaloswal.com

LT Foods
Company background
LT Foods Ltd. (LTFL) is one of the leading branded basmati rice player. Over the years it has emerged
as a specialty food company focused on branded basmati rice, convenience rice based products
and organic food. Its geographical segments include India, North America, Europe, Middle East
and Rest of the World. Its operations include contract farming, procurement, storage, processing,
packaging and distribution. The product portfolio for the company include brown rice, white rice,
steamed rice, parboiled rice, organic rice, quick cooking brown rice, value added rice and flavored
rice in the ready to cook segment.
Exhibit 1: LT Foods - Product Portfolio
Brand
•
•
•
Description
Flagship brand of the company.
Leading basmati rice brand in India with a market share of ~29%
in branded segment.
Gaining market share in other geographies like Europe, Middle
East.
#1 basmati rice brand in USA with a market share of ~40%.
Other products include jasmine rice, arborio rice and wheat.
Growing at a CAGR of 21% over last 5 years
•
•
•
•
•
Mid-price segment basmati rice for domestic market.
Devaaya includes other staples like wheat flour, refined flour,
flattened rice, chickpea flour, and semolina.
•
•
Basmati rice brand for the mass segment.
Distinctive aroma and quality
•
•
•
Organic food brand of the company
Caters mainly to US and Europe
Range includes rice, pulses, oil seeds, cereal grains, spice, nuts,
fruits and vegetables
Recently acquired brands from HUL
Expected to help company strengthen its position in lucrative
Middle East markets like Saudi Arabia, UAE and Kuwait.
•
•
•
•
Recently acquired brand from Deva Singh Sham Singh (DSSS)
Expected to help company strengthen its footprint in US, Canada,
Australia, Europe & Middle East
4th April 2018
November 2017
2

LT Foods
Exhibit 2: FY17 Revenue Breakup (Region wise)
Exhibit 3: FY17 Revenue split (Business Vertical wise)
Source: Company, MOSL
LTFL has five manufacturing units located at Bahalgarh & Kamaspur (Haryana), Amritsar & Varpal
(Punjab) and Bhopal (Madhya Pradesh) in India with a combined milling capacity of ~103 tonnes
per hour (TPH). The company commissioned a rice processing plant at Rotterdam (Netherlands)
in June'17 to cater to European market.
Exhibit 4: Rice milling capacity
Sonepat
(Bahalgarh)
Rice Capacity (TPH)
Key Products
45
Raw rice
Sonepat
(Kamaspur)
5 (Organic)
Organic rice, snack
35
Rice, plain chips,
seasoning chips
rice/wheat flour,
brown rice
First to get
FSSC 22000
certification
6
Rice
parboiled rice
12
Rice (golden
creamy,boiled
parboiled and
raw)
Fully integrated
and automated
facility
Source: Company, MOSL
Bhopal
Amritsar
Varpal
Accreditation
First to have
complete
storage in 1
MT bags
100% organic
facility with cold
and CO2 treatment
4th April 2018
November 2017
3

LT Foods
Basmati rice industry
Basmati, one of the most expensive varieties of rice in the world, is a premium long-grain fine-
textured rice. A Geographical Indication (GI) product, this aromatic grain is grown only in certain
parts of India and Pakistan due to conducive agro-climatic and soil conditions. It is estimated that
70% of global basmati rice is produced in India and the balance in Pakistan. India is the largest
producer and exporter of premium basmati rice that is highly renowned across the globe.
Listed below are the key industry dynamics and facts about the basmati rice:
•
•
Basmati rice production:
~1% of the world rice production is Basmati.
Geographical Production:
o India - 70%
o Pakistan - 30%
Season:
o Sowing season : May-June
o Harvesting season: October-November
Industry structure:
o Organized - ~40%
o Unorganized - ~60%
Exports Volume:
o India - accounts for ~90%
o Pakistan/ROW - 10%
Variants:
There are 29 variants of Basmati recognized so far. However, broadly there are three
major categories:
o
Pusa 1121 Basmati:
Produced by R&D from the Pusa Institute (New Delhi) in 2003. It is the
longest basmati grain in the world- before as well as after cooking and gives 30% more
volume than any other basmati variety. This variant can be recognized by its unique
aroma and special sweet taste. This variant has excellent global acceptability that spans
Middle east, Iran, Australia, Africa, Canada and even USA. It commands the most premium
price and is most preferred amongst farmers today.
o
Pusa Basmati 1:
Produced by R&D from the Pusa Institute (New Delhi) in 1990. Keeping
the limited cultivation area and the ever increasing demand in mind, the research yielded
ways of producing a greater quantity on the same land through the natural process of
hybridization. This variety revolutionized the Indian basmati industry and gained India's
entry to many inaccessible markets.
o
Traditional Basmati:
This common phrase is used to refer to older varieties that are in still
production. Two popular varieties 370 and HBC 19 amongst others are collectively called
Traditional. Due to their lower yield they have gradually phased away and have been
replaced by a newer variety - CSR-30. Today, a majority of export is CSR-30- which is a
recently evolved variety. It has the lowest yield compared to the two varieties listed
above.
•
•
•
•
•
•
Pricing:
Commands ~80-90% premium over non-basmati rice
Production process leading to entry barriers:
Basmati rice needs ~18-20 months of ageing in
order to increase the aroma and quality of product. This leads to high working capital
requirement in the business thus creating strong entry barriers for new players
4
4th April 2018
November 2017

LT Foods
Investment Rationale
Domestic consumption to see continued demand growth:
Rice is amongst the most crucial food crops and staple diet of majority of Indian consumer. Over
90% of the global rice output and consumption is centered in Asia, wherein the world's largest rice
producers, China and India, are also the world's largest rice consumers.
Currently, domestic basmati rice market is estimated at ~INR13,000 crore. The share of basmati as
a percentage of total rice consumption in India is extremely low at ~2% as compared to the Middle
East (38%). Basmati is a premium category of rice having distinct aroma, taste and texture. The rise
in disposable income and premiumization coupled with increasing penetration of basmati is
expected to drive the consumption of basmati in India.
Other key observation in domestic consumption is the shift of consumers from unbranded to
branded products. The share of branded basmati as % of total basmati consumption in India has
risen from 17% in FY12 to 27% in FY17. We expect the trend to continue on the back of rising
affluence.
Exhibit 5: Growing share of branded basmati in domestic consumption
Source: Company, MOSL
Exhibit 6: Share of Basmati (as % of total rice consumption)
Source: Company, MOSL
4th April 2018
November 2017
5

LT Foods
For LTFL brand building exercise to make its brand more visible and endearing to the Indian
consumer by engaging celebrities like Amitabh Bachchan and Chef Sanjeev Kapoor to endorse its
products has played out exceptionally well. This has led to market share gain in branded basmati
from 10% in FY07 to ~29% as 9MFY18. We expect LTFL to be one of the key beneficiaries of this
changing industry dynamics on account of:
•
•
Strong brand positioning - Daawat is one of the leading branded basmati rice players in India
with a strong brand recall.
Diverse product portfolio to cater varied price points- LTFL has a broad range of product
offerings to cater to different class of consumers from mass to premium segment thus giving
it an advantage to tap full potential of the growing consumer base.
Wide distribution network - Currently, LTFL has access to 1,40,000 traditional retail outlets and
3,000 wholesalers reaching 93% of the towns with 2lakh+ population in India.
•
We expect domestic basmati revenue CAGR of 8.3% over FY17-20E mainly factoring in volume
growth while keeping the realization assumptions stable.
Exhibit 7: Steady volume growth and stable realization to drive domestic growth
Source: Company, MOSL
Exhibit 8: Increasing ad. spend over the years….
Exhibit 9: ...helped LTFL gain share in Branded Basmati
Source: Company, MOSL
4th April 2018
November 2017
6

LT Foods
Global expansion (Organic and Inorganic) - Augurs well to tap lucrative markets:
Middle East - A lucrative yet an untapped market for LT Foods:
Middle East or Gulf Cooperation
Council (GCC) is one of the largest basmati market in the world (refer exhibit 6) .GCC have been the
major importers of Indian basmati (65% of total basmati exports by volume in FY17). GCC market is
expected to see stable consumption growth of basmati rice given their cuisine and culinary
preferences for basmati rice.
Europe/USA/Rest of Asia - Changing demographics can be a growth driver:
While the Middle East
market offers steady demand growth, other basmati importing regions (like Europe/USA/Rest of
Asia could be the additional growth drivers for the industry. The low penetration of basmati
consumption despite a large Asian population in these countries leaves significant room for growth.
LTFL is the market leader in USA (Royal Brand) commanding 40% market share and is growing at a
25% CAGR over FY12-17 pushing it into sweet spot to capture the growth opportunity.
Recently, LTFL set up a rice processing plant of 60,000 MT in Rotterdam (Netherlands) to tap the
European market. Also in FY17, it acquired "Gold Seal Indus Valley" and "Rozana" brand from HUL in
order to strengthen its footprint in lucrative Middle East markets like Qutar, Oman, Bahrain, UAE,
Saudi Arabia and Kuwait. Owing to healthy demand growth across regions of its operations viz. USA
(strong brand recall), Europe (leadership position and new plant commercialization), Middle East
(entry via brand acquisitions from HUL).
We expect exports basmati revenue CAGR of 8.5% over FY17-20E.
Exhibit 10: Daawat exports outpacing industry exports
Source: Company, MOSL
Exhibit 11: Higher volume growth and stable realization to drive exports
Source: Company, MOSL
4th April 2018
November 2017
7

LT Foods
Organic food and value added products - future growth drivers:
Organic food business
- Organic food is the fastest growing segment for the company (registered a
CAGR of 44% over FY12-17) and contributed ~8% to the FY17 revenue. Nature Bio-Foods Ltd (NBF)
is a wholly owned subsidiary of LT Foods dedicated primarily to its organic business. This segment
has relatively high barriers to entry owing to the fact that it requires ~3 years of cultivation through
organic methods to produce pure organic harvest fit for consumption and distribution as an organic
product. Given strong global demand for organic foods and limited competition, we expect the
strong growth momentum to continue.
Value added products
-LTFL's value added product (VAP) division is still in nascent stage and accounts
for ~9% of the overall business. VAP is a high margin business that is expected to help improve
company's profitability and return ratios. The company has launched many Value added products
under this business like fast cooking brown rice, convenience sauces, and blend of white and
brown rice that offers taste and health to the consumer. In order to expand the product portfolio
further and move up the value chain, LTFL entered into a JV with Kameda Seika (leading Japanese
snack company) to manufacture rice-based snacks.
Exhibit 12: Nature Bio Foods Ltd - Significant share in India's total organic food export
Source: Company, MOSL
We model a 22% CAGR for Organic and Value added product business over FY17-20E on back of
high demand both in exports and domestic market, changing demographics and lifestyle, increasing
health awareness and relatively less competition.
4th April 2018
November 2017
8

LT Foods
Exhibit 13: Global organic food market to register a CAGR of 15% over FY16-25P
Source: Company, MOSL
Exhibit 14: Share of organic food worldwide (CY16) - USA/Europe is expected to remain key
regions for organic food market
Source: Company, MOSL
4th April 2018
November 2017
9

LT Foods
Financial Analysis - Stable growth with margin expansion:
Stable Revenue and PAT growth over long term:
Basmati is a commodity business but LTFL's long
term growth has been fairly consistent primarily on account of organic and inorganic expansion
across geographies, product innovation and brand building. Revenue/adj.PAT has registered a
CAGR of 18%/33% over FY12-17. We forecast 12.2%/25.7% revenue/adj. PAT CAGR over FY17-20E
and an EBITDA margin improvement of 127bps to 12.5% mainly driven by organic food segment
and branded basmati rice.
Fund raised via QIP aimed at balance sheet deleveraging and working capital management:
In
Dec'17, LTFL raised INR 4,000mn via QIP with an aim to strengthen balance sheet by repaying
~INR1,500 mn in debt and utilizing the balance funds for working capital requirement. Debt
repayment along with improvement in credit cost (-50bps) is expected to bring down interest
payment by ~INR 180 mn in FY18.
ROE/ROCE to improve owing to better operating efficiency:
LTFL has shown improving
fundamentals over FY12-17 despite working capital intensive nature of the business with an
average ROE/ROCE of 22.8%/9.7%. Although, ROE would intermediately dip for a couple of years
on account of QIP, but the same is expected to show improving trend post FY19E. ROCE is expected
to improve to 12.5% in FY20E from 10.7% in FY17 on account of better operating efficiency.
Debt to Equity trends southwards on account of better working capital management:
Basmati
rice is a working capital intensive business owing to the fact that basmati needs to be aged for 18-
24 months. Thus, most of the working capital is tied up to inventory leading to higher short term
debt across industry players. However, LTFL has seen a significant improvement in its working
capital management largely supported by reduction in inventory days (from 213 days in FY12 to
161 days in FY17). We expect the improvement to continue on account of strong cash flow
generation and better operating efficiency resulting in debt to equity ratio to decline from 2.4x in
FY12 to 0.7x by FY20E.
Exhibit 15: Strong free cash flow generation to help improve balance sheet
Source: Company, MOSL
4th April 2018
November 2017
10

LT Foods
Valuations
Basmati rice business is viewed as a commodity business and has commanded low valuations
like other commodity companies. However, players like KRBL, LT Foods etc. have redefined the
industry norms and focused on building brands (India Gate - KRBL, Daawat/Royal - LT Foods) to
take advantage of the changing industry dynamics of consumers shifting to the branded basmati
rice and value added products.
This has helped LT Foods achieve higher revenue growth (18.2% over FY12-17) and relatively
stable margins (10.9% in median and 10.8% average margin over FY12-17).
Currently, branded business and value added products/organic business (higher margin segments)
together account for ~78% of the revenue and is expected to further improve to 82% by FY20E.
We anticipate strong free cash flow generation, steady revenue growth across segments,
improving OPM (+127bps improvement 12.5% in FY20E) on the back of higher share of branded
basmati, organic business & value added products. We also expect balance sheet deleveraging
on account of debt repayment bringing down net debt to Equity from 2.3x in FY17 to 0.7x in FY20E.
LTFL currently trades at 10.9x/8.5x on FY19/20 P/E. LTFL has shown consistent revenue growth and
profitability improvement over years on account of rising share of branded business (resulting in
stable margins), geographical expansion and product innovation (organic foods, value added
products) leading to significant re-rating in its valuation. Given LTFL's increased focus on branded
basmati rice and organic food business, we believe the company is becoming a strong consumer
story in the making. We initiate coverage with a BUY rating valuing the stock at 12x FY20E EPS with
a target price of INR125.
Exhibit 16: Business Comparison
MKT CAP
Company
KRBL
LT Foods
Chamanlal Setia
(INR mn)
1,07,208
28,232
7,377
FY17 (INR mn)
Revenue
31,490
32,865
4,933
PAT
3994
1400
385
Revenue Growth
FY18E
4.4
11.7
54.1
FY19E
6.9
11.8
16.6
OPM (%)
FY18E
23.5
11.3
10.7
FY19E
25.0
11.9
10.6
PAT CAGR
FY18E
18.2
27.9
23.1
FY19E
15.2
20.2
16.9
Source: - LT Foods- MOSL, Others - Bloomberg Consensus Estimates
Exhibit 17: Relative Valuation
Mcap/sales
Company
KRBL
LT Foods
Chamanlal Setia
(x)
3.4
0.9
1.5
Debt/Equity
(x)
0.6
2.4
0.3
RoE (%)
FY18E
21.1
19.0
24.6
FY19E
20.2
16.2
22.3
EV/EBITDA (x)
FY18E
14.1
8.7
8.6
FY19E
12.4
7.2
7.4
P/E (x)
FY18E
22.7
13.2
15.6
FY19E
19.7
10.9
13.3
Source: - LT Foods- MOSL, Others - Bloomberg Consensus Estimates
Stock price data is as on 4th Apr'18
4th April 2018
November 2017
11

LT Foods
Exhibit: 18 LT Foods 1-year forward P/E (x)
Source: Company, MOSL
4th April 2018
November 2017
12

LT Foods
Story in Charts
Exhibit 19: Domestic revenue growth trend
Exhibit 20: Exports revenue growth trend
Source: Company, MOSL
Exhibit 21: Steady revenue growth
Exhibit 22: Margin improvement likely to continue
Source: Company, MOSL
Exhibit 23: Expect ~26% CAGR in PAT over FY17-20E
Exhibit 24: ROCE to improve on account of better
op.efficiency
Source: Company, MOSL
4th April 2018
November 2017
13

LT Foods
Key Risks
Volatility in raw material prices:
The basmati rice processing industry is an agro-
based industry and its main raw material is basmati paddy. The cost and availability
of basmati paddy is impacted by many factors like inadequate irrigational facilities,
unfavorable climatic conditions, change in crop patterns and farmer's preference
for other crops that yield better realization. These factors can impact basmati
production impacting volumes and realization.
Disruption of supply demand dynamics could lead to price erosion:
Trade
restrictions by key basmati rice importers (Iran, Saudi Arabia etc.) can lead to
price erosion leading to subdued realizations among all industry peers.
Exchange rate fluctuations:
LTFL derives 55% of its revenue from exports business.
LTFL has adopted a policy of selective hedging based on the risk perception of
company's management and any unfavorable movement in exchange rate
fluctuation can impact profitability of the company.
4th April 2018
November 2017
14

LT Foods
Management Overview
Mr. Vijay Kumar Arora, Chairman & Managing Director
•
•
•
B.Sc from Meerut University.
He has been associated with the Company since October 16, 1990.
He has approximately 27 years of experience.
Mr. Surinder Kumar Arora, Managing Director
•
•
Key responsibility are production and procurement.
He served as a Director of LT Foods Limited (formerly known as LT Overseas
Ltd.) since August 31, 2000.
Mr. Ashwani Kumar Arora, MD & CEO
•
•
He is responsible for marketing and the brand promotion of products in India.
B.Com and has also attended the management development Programme
conducted by the Administrative Staff College, Hyderabad.
Mr. Vivek Chandra, CEO Global Branded Business
•
•
Former President and CEO, South Asia & South ASEAN of Associated British
Foods.
Has also worked with companies like Novartis Consumer Health, Procter and
Gamble India as a Customer Business Development Director where he delivered
breakthrough and aggressive growths in the organization.
Mr. Ashok Kumar Arora, President (Punjab Operations)
•
•
B.A. from Guru Nanak Dev University.
He has approximately 27 years of experience.
Ms. Monika Chawla Jaggia, CS and VP (Finance & Strategy)
•
•
•
MBA from the Institute of Chartered Financial Analysts of India University,
Tripura.
She is a fellow member of the Institute of Company Secretaries of India.
She has approximately 20 years of experience.
4th April 2018
November 2017
15

LT Foods
Financials and Valuations
Consolidated - Income Statement
Y/E March
Net Sales
Change (%)
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT
Tax
Tax Rate (%)
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY14
24,741
12.1
22,108
89.4
2,633
10.6
374
2,259
1,134
185
1,310
463
35.3
782
912
45.6
3.7
FY15
27,346
10.5
24,708
90.4
2,638
9.6
466
2,172
1,511
451
1,112
348
31.3
725
803
-11.9
2.9
FY16
29,734
8.7
26,168
88.0
3,566
12.0
515
3,051
1,478
63
1,196
471
28.8
722
1,168
45.4
3.9
FY17
32,865
10.5
29,187
88.8
3,678
11.2
542
3,137
1,546
340
1,931
644
33.3
1,174
1,400
19.8
4.3
FY18E
36,714
11.7
32,581
88.7
4,133
11.3
574
3,559
1,368
300
2,491
831
33.3
1,790
1,790
27.9
4.9
FY19E
41,052
11.8
36,185
88.1
4,868
11.9
635
4,233
1,158
153
3,228
1,076
33.3
2,151
2,151
20.2
5.2
(INR Million)
FY20E
46,461
13.2
40,673
87.5
5,788
12.5
680
5,108
1,073
133
4,168
1,390
33.3
2,778
2,778
29.1
6.0
Consolidated - Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Minority Interest
Debt
Deferred Tax (Net)
Total Capital Employed
Gross Fixed Assets
Less: Accum. Depriciation
Net Fixed Assets
Capital WIP
Investments
Current Assets
Inventory
Debtors
Cash and Bank Balance
Loans and Advances & OCA
Curr. Liability & Provisions
Account Payables
Current Liabilities
Other Long Term Liab. & Provs.
Net Current Assets
Appl. of Funds
2014
263
3,646
3,909
305
14,490
13
18,717
5,692
2,195
3,497
186
51
18,193
13,494
3,261
351
1,088
3,210
1,483
1,254
473
14,983
18,717
2015
265
4,363
4,627
345
16,388
0
21,360
6,383
2,679
3,704
147
69
20,521
13,622
3,179
212
3,508
3,094
1,000
1,748
346
17,428
21,360
2016
267
5,101
5,368
343
15,579
0
21,290
6,757
3,145
3,612
244
64
20,650
12,996
3,757
323
3,574
3,353
1,494
1,310
549
17,296
21,290
2017
267
6,296
6,562
452
15,775
0
22,789
7,360
3,655
3,706
395
53
22,989
14,483
4,629
412
3,465
4,438
2,184
1,541
713
18,551
22,789
2018E
320
11,949
12,269
321
13,775
0
26,366
8,370
4,229
4,141
395
53
26,463
16,068
5,171
1,353
3,871
4,686
2,032
1,858
796
21,776
26,365
2019E
320
14,005
14,324
321
12,675
0
27,321
9,027
4,864
4,163
395
53
27,892
17,843
5,782
983
3,284
5,182
2,286
2,012
884
22,710
27,321
2020E
320
16,667
16,987
321
11,825
0
29,134
9,607
5,544
4,063
395
53
30,415
20,054
6,544
100
3,717
5,793
2,475
2,325
994
24,622
29,134
4th April 2018
November 2017
16

LT Foods
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
Working Capital Ratios
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Net Debt/Equity
2014
3.4
4.8
14.7
0.2
8.9
25.8
18.3
6.0
1.5
14.3
0.3
1.8
26.0
9.0
1.3
199
48
22
3.6
2015
3.0
4.8
17.4
0.2
8.8
29.3
18.6
5.1
1.5
15.1
0.2
-1.7
18.8
9.1
1.3
182
42
13
3.5
2016
4.4
6.3
20.1
0.2
6.7
20.2
14.0
4.4
1.3
10.9
0.2
9.1
23.4
10.6
1.4
160
46
18
2.8
2017
5.2
7.3
24.6
0.1
4.1
16.8
12.1
3.6
1.2
10.6
0.2
5.0
23.5
10.7
1.4
161
51
24
2.3
2018E
6.7
8.9
46.0
0.2
4.3
13.2
10.0
1.9
1.0
8.7
0.3
0.8
19.0
10.6
1.4
160
51
20
1.0
2019E
8.1
10.5
53.7
0.3
4.5
10.9
8.4
1.6
0.9
7.2
0.3
6.9
16.2
11.0
1.5
159
51
20
0.8
2020E
10.4
13.0
63.7
0.4
4.1
8.5
6.8
1.4
0.8
6.1
0.4
3.8
17.7
12.5
1.6
158
51
19
0.7
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
2014
1,310
374
1,080
-227
-1,695
842
194
1,036
-545
492
-1
16
-530
6
690
-1,082
-61
0
-447
59
286
345
2015
1,112
466
1,453
-495
-2,451
85
5
90
-553
-463
-18
-9
-580
8
1,840
-1,458
-69
0
321
-168
348
179
2016
1,635
515
1,404
-338
-689
2,527
445
2,972
-537
2,435
0
1
-536
46
-930
-1,406
-63
0
-2,353
82
179
262
2017
1,947
542
1,441
-439
-1,226
2,264
-72
2,191
-867
1,324
4
-19
-882
0
230
-1,443
-48
0
-1,260
48
253
301
2018E
2,491
574
1,368
-720
-2,200
1,513
-300
1,213
-1,010
204
0
300
-710
3,993
-2,000
-1,368
-77
0
548
1,052
301
1,353
2019E
3,228
635
1,158
-1,076
-1,304
2,641
-153
2,487
-657
1,830
0
153
-503
0
-1,100
-1,158
-96
0
-2,354
-370
1,353
983
(INR Million)
2020E
4,168
680
1,073
-1,390
-2,795
1,736
-133
1,603
-581
1,022
0
133
-448
0
-850
-1,073
-115
0
-2,038
-883
983
100
4th April 2018
November 2017
17

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November 2017