LT Foods Limited: The Basmati Rice Giant with 20% Growth Potential
LT Foods Limited, established in the 1980s, is a prominent player in basmati rice milling, processing, and marketing. It also excels in rice food products and organic ingredients through its subsidiary, offering a 20% growth potential in the current dynamic market.
Incorporated in the 1980s, LT Foods Limited is a key player in the milling, processing, and marketing of both branded and non-branded basmati rice. It’s also involved in the manufacturing of rice food products for domestic and international markets. The company’s commitment extends to research and development to enhance the value of rice and rice-based food products. Its diverse rice product portfolio includes brown rice, white rice, steamed rice, parboiled rice, organic rice, quick-cooking rice, value-added rice, and flavoured rice in the ready-to-cook segment.
A subsidiary, Nature Bio Foods Limited (NBFL), focuses on the ingredient-based organic food segment. NBFL has gained trust as a brand that offers authentic organic ingredients to consumers in the US and European markets.
Currently, LT Foods Limited is consolidating in a range, with a higher side at Rs 194.10 and a lower side at Rs 146.60 since August 1, 2023, following a high of Rs 194.10. The lower range of this consolidation phase found support at approximately 38.2% retracement of the rally that began on March 27, 2023, at Rs 90. Additionally, this consolidation phase is just above the long-term weekly ascending breakout trendline. Remarkably, it has seen strong buying interest in recent trading sessions with robust volume, resulting in a breakout of a continuation price pattern known as a bullish flag pattern, with a daily close above the breakout trendline at Rs 192.85.
This consolidation phase is also supported by the 100-Day Moving Averages (DMA). The 14-day RSI indicator remains in the bullish territory around 66, with a favourable crossover of the 5-13-26 DMA, indicating positive momentum. Following this breakout, the stock has the potential to reach Rs 220, signifying a 20% gain from the breakout level. LT Foods Limited has now captured the interest of both swing traders and long-term investors, presenting a promising opportunity for further growth in this ever-evolving market.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.