Basmati rice shares in focus; LT Foods, KRBL hit new highs

In FY17, LT Foods and Kohinoor Foods rallied more than 100%

Shares of basmati rice producers rallied by up to 9%, extending their previous day gains on hopes that the coming financial year is expected to witness better revenue growth for the industry supported by a rise in average realizations.

LT Foods, the company engaged in the manufacture and sale of rice under the brand DAAWAT, has rallied 9% to Rs 67.50, also its record high on the BSE.

Kohinoor Foods (up 5% to Rs 86.50), Chaman Lal Setia Exports (3% at Rs 105) and KRBL (up 2% at Rs 432) were up in the range of 2% to 5%, as compared to 0.02% rise in the S&P BSE Sensex.

Basmati rice exports is likely to grow to Rs 22,000-22,500 crore and volume to around 4.09 million tonne mainly supported by an increase in average realisations, rating agency ICRA said in a report.

“Going forward, the coming financial year is expected to witness better revenue growth supported by a rise in average realisations, as paddy prices firm up during the current procurement season. Moreover, resumption of imports by Iran will also be crucial for driving industry growth in the next fiscal," said ICRA Assistant Vice President Deepak Jotwani. CLICK HERE FOR FULL REPORT

Most of these stocks outperformed the market by surging up to 200% in FY17 against 17% rise in the benchmark index.

Meanwhile, these four rice companies had posted an average 44% year-on-year growth in net profit for the first nine months (April to December) of FY17. The aggregate net profit of these companies increased to Rs 419 crore in FY17 from Rs 291 crore in FY16.

	Price in Rs			Net proft/loss (Rs cr)
Company	31/03/2016	Latest	% chg	9MFY16	9MFY17
L T Foods	22.59	67.50	198.8	66.6	83.7
Kohinoor Foods	42.80	87.00	103.3	-5.6	15.6
KRBL	222.60	432.00	94.1	199.8	289.6
Chamanlal Setia	55.55	103.90	87.0	30.7	30.1