Brickwork Ratings India Pvt Ltd updates on credit rating of LT Foods Ltd

Brickwork Ratings India Private Limited has assigned Long term credit rating of BWR A + (Stable) and short term credit rating of BWR A1+ (Stable).

Detailed Rationale:

The assigned rating is underpinned by Company's strong business profile and an improvement in LT Foods credit profile and financial performance in FY 20 and Q1FY21, which in turn is driven by a growing EBITDA and PAT in its resilient rice processing business, along with comfortable credit ratios.

The rating factor in the Company's long track record and experienced management, strong distribution network, diversified product portfolio and strong brand recall, geographical diversification and large scale of operations, coupled with a sound financial risk profile. The rating outlook is Stable on account of a sound demand outlook for the rice industry for both short-term and medium term due to its essential nature and hence not impacted by Covid-19 pandemic.

Shares of LT FOODS LTD. was last trading in BSE at Rs.52.2 as compared to the previous close of Rs. 50.05. The total number of shares traded during the day was 220222 in over 1581 trades.

The stock hit an intraday high of Rs. 52.5 and intraday low of 50.3. The net turnover during the day was Rs. 11363644.

Source : Equity Bulls

Keywords