Why stocks of rice exporters LT Foods, KRBL jumped up to 13% on Monday?

The underlying demand fundamentals remain healthy, and the company expects gradual normalization over the coming quarters as the business mix improves, LT Foods said.

LT Foods, KRBL share price movement

 

Shares of rice exporters LT Foods and KRBL rallied up to 13 per cent on the BSE in Monday’s intra-day deals amid heavy volume in an otherwise tepid market. In comparison, the BSE Sensex was down 0.17 per cent at 77,412 at 11:22 AM.

 

Share price of LT Foods hit a 52-week high of ₹482.85, surging 13 per cent in intra-day deals. The stock surpassed its previous high of ₹479.80 touched on September 19, 2025. The average trading volume at the counter jumped over 10-fold, with a combined 13.14 million equity shares changing hands on the NSE and BSE.

 

KRBL’s stock price jumped 9 per cent to ₹443.50 on the back of three-fold rise in the average trading volume. A combined 3.2 million equity shares changed hands on the NSE and BSE.

 

Why LT Foods outperformed the market?

 

LT Foods is a global consumer-focused specialty food company specializing in basmati rice, organic foods, and ready-to-eat/cook (RTE/RTC) products. Its flagship brands include Daawat in India and Royal in North America. The company has a presence in more than 80 countries with significant regional exposure in the US, Europe, etc.

 

According to analysts at Geojit Investments, the core basmati franchise continues to deliver strong volume-led growth, while market share gains in India reinforce the premiumisation thesis. Near-term margins face two transitory drags: the organic segment’s shift from a wholesale model to a direct CPG (Consumer Packaged Goods) model and changes in related-party shipment terms. 

 

Regional expansion in North America, the UK/Europe investment phase and launches in the Middle East support the medium-term volume outlook, while the business has navigated tariff resets and geopolitical volatility without material impact. Branded, premium, and RTE/RTC products are expected to remain key growth drivers, delivering stronger growth than the broader portfolio, the brokerage firm said. Analysts maintain a 'Buy' rating on the stock, valuing it at 17x on FY28 EPS (3-yr avg. 20x) to arrive at a target price of ₹514 per share.

 

LT Foods’ management, in the Q1 earnings conference call, said that the underlying demand fundamentals remain healthy, and the company expects gradual normalization over the coming quarters as the business mix improves. The management believes strongly in the long-term opportunities within the global organic food market. The company’s RTH facility in the US is expected to become operational this quarter.

 

Religare Broking on KRBL

 

KRBL produces basmati rice and non-basmati rice. It is also engaged in manufacturing by-products such as bran oil, furfural, and de-oiled cakes, among others. The company predominantly manufactures and markets branded rice products in India and across the globe. ‘India Gate’ is the company’s flagship brand and commands a premium in the Indian and international markets.

 

KRBL delivered a resilient June 2026 quarter (Q1FY27) performance despite severe disruption in West Asia, which affected a significant portion of India’s basmati export trade. India’s basmati export volumes also declined to 1.5mt from 1.7mt year-on-year (YoY) amid the disruption, while basmati realizations increased 20 per cent YoY and 13 per cent quarter-on-quarter (QoQ).

 

The management expects export volume to recover progressively from Q2FY27 as shipping conditions in West Asia stabilise and maintains its guidance of meaningful export growth for FY27.

 

Analysts at Religare Broking remain constructive on KRBL’s medium-term outlook, supported by 10 per cent domestic volume growth, progressive export recovery, premiumisation, strong 'India Gate' brand equity, and improving international competitiveness. While Q1 profitability benefited from favourable inventory economics and MTM gains, management’s guidance of 17–18 per cent earnings before interest, taxes, depreciation, and amortization (EBITDA) margin provides a more appropriate base for FY27 earnings expectations. 

 

“Our estimates remain unchanged, with revenue, EBITDA, and profit after tax expected to grow at approximately 10.9 per cent, 18.4 per cent, and 21.4 per cent compound annual growth rate (CAGR), respectively, over FY26–FY28E, supported by domestic growth, export recovery, and operating leverage,” the brokerage firm said in Q1 result update. It has a 'Buy' rating on KRBL, valuing the stock at ₹461/share, based on an equal blend of 9x FY27E EV/EBITDA and 14.7x FY27E EPS.  Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.