Dont miss out on this stock which can benefit from high food prices

IMF Chief Kristalina Georgieva recently warned about food inflation.

The stock is up more than 9 per cent on September 13.

The company we are talking about is one of the largest rice sellers in the world. About 68 per cent of the company’s revenue comes from the international market, while the remaining 32 per cent comes from the domestic market. 

With a market capitalisation of Rs 3184 crore belonging to the BSE Small-Cap index, the stock is trading at a modest PE multiple of 10.3x. As per the FY22 period ending, the company has ROE and ROCE of 14.8 per cent and 15.6 per cent, respectively, and a health dividend yield of 1 per cent. 

The company we are talking about is LT Foods Ltd, which operates under the famous brand “DAWAAT”. 

On September 13, the shares of LT Foods Ltd have soared by more than 9 per cent and as of 2:03 pm are trading at Rs 100. Recently, the Indian Government imposed an export duty tax of 20 per cent on non-basmati rice exporters. However, LT Foods was not much affected by the ruling as the majority of the company’s revenue comes from basmati rice exports. 

Keep this stock on your watchlist.