LT Foods: A Top Player in Basmati Rice with a Bright Future

Daily Market Updates
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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.

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LT Foods Receives Compensation: A Victory for Daawat Foods

This landmark ruling comes after a prolonged legal battle following a devastating fire incident at Daawat Foods’ plant in 2014.

Overview

LT Foods Limited, a prominent Indian-origin global FMCG company, has recently welcomed the Supreme Court’s decision in favor of its subsidiary, Daawat Foods Ltd. This landmark ruling comes after a prolonged legal battle following a devastating fire incident at Daawat Foods’ plant in 2014.

The Incident and Initial Response

On June 7, 2014, a massive fire broke out at the Daawat Foods plant located in Mandideep, District Raisen, Madhya Pradesh. The fire caused extensive damage, destroying approximately 44,975 metric tons of paddy worth Rs 182.22 crores, along with other assets worth Rs 7.50 crores. The total loss amounted to Rs 189.72 crores.

Daawat Foods had a Standard Fire and Special Perils Policy with Oriental Insurance Company. Following the incident, the insurance company appointed multiple surveyors and investigators, who submitted their reports between 2014 and 2016. Despite the substantial loss, Oriental Insurance repudiated the claim, citing findings of arson and the presence of excessive hydrocarbons.

Legal Battle and High Court Ruling

Unwavering in its pursuit of justice, Daawat Foods Ltd. initiated a commercial suit against Oriental Insurance Company on June 26, 2016, seeking compensation of INR 259.98 crores. The case saw several developments, and on December 22, 2023, the Hon’ble High Court of Madhya Pradesh ruled in favor of Daawat Foods Ltd., awarding a claim of INR 161.20 crores, along with an interest of 6% per annum from the date of the loss.

Supreme Court Decision

Oriental Insurance Company appealed the High Court’s decision, but the Supreme Court upheld the ruling, directing Oriental Insurance to pay the compensation with additional interest. This decision marks a significant victory for Daawat Foods Ltd. and reinforces the integrity of judicial processes in upholding rightful claims.

Statements from LT Foods

Mr. Ashwani Arora, Managing Director & CEO of LT Foods, expressed deep gratitude for the Supreme Court’s decision. He emphasized the company’s respect for the judiciary and its commitment to delivering excellence and maintaining stakeholder trust.

Disclaimer: This blog 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.