LT Foods: PAT growth of 41% & Revenue growth of 12% in FY24 at PE of 16
LT Foods: PAT growth of 41% & Revenue growth of 12% in FY24 at PE of 16
Guidance for 10-12% revenue CAGR with EBITDA margin expansion in FY25. At an attractive free cash flow of 6.2%
1. Basmati & Other Specialty Rice, Organic Food & Ingredient business & Ready to eat/Ready to cook segment
ltgroup.in | NSE : LTFOODS
Powerful brands like Daawat (30%+ Market Share), Royal (50%+ Market Share), Golden Star, 817 Elephant, Devaaya
Our RTE/RTC food expected to grow at a CAGR of 33-35% for next 5 years
2. FY20-24: PAT CAGR of 32% & Revenue CAGR of 17%
Our revenue CAGR in the last 18 years is 18% and PAT CAGR is 21%.
3. Strong FY23: PAT up 37% and Revenue up 28% YoY
4. Strong 9M-24: PAT up 54% & Revenue up 11% YoY
5. Strong Q4-24: PAT up 14% & Revenue up 14% YoY
6. Strong FY24: PAT up 41% & Revenue up 12 YoY
7. Business metrics: Strong & improving return ratios
8. FY25 Outlook: 10-12%revenue growth with PAT growing faster than revenue
i. FY24: 10-12%revenue growth
So on the demand side, in the international market, we are optimistic that double digit 10% to 12% growth will remain intact.
ii. EBITDA Margin Expansion
EBITDA Margin of 12.6% in FY24 expected to move up to 14-15% in next 4 years
Compelling growth opportunity both in India and Internationally, expected to achieve EBITDA of 14-15% in next 4 years
9. PAT growth of 41% & Revenue growth of 12% in FY24 at a PE of 12
10. So Wait and Watch
If one holds the stock then one may continue holding on to LTFOODS
Coverage of LTFOODS was initiated after Q2-24 results. The investment thesis has not changed after a strong FY24. The delivery of a strong FY24 has increased confidence in the management to deliver a FY25 as per the guidance
LTFOODS has a solid track record of growing its bottom line ahead of its top-line. The trend is expected to continue in FY25 with management indicating for a 5 year revenue CAGR of 10-12% with with EBIDTA margin expansion over the 5 years.
Our revenue CAGR in the last 18 years is 18% and PAT CAGR is 21%.
11. Or, join the ride
If I am looking to enter LTFOODS then
LTFOODS has delivered PAT growth of 41% & Revenue growth of 12% in FY24 at a PE of 16 which makes valuations reasonable.
Given the historic track record of LTFOODS one can expect FY25 to be similar to FY24 at a PE of 16 which makes valuations reasonable.
LTFOODS delivered Rs 556 cr of free cash flow in FY24 against a current market cap of Rs 9,020 cr. As of FY24 end it is available on a free cash flow yield of 6.2% which makes the valuations quite attractive.
Previous coverage of LTFOODS
Don’t like what you are reading? Will do better. Let us know at hi@moneymuscle.in
Don’t miss reading our Disclaimer