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LT Foods (Daawat) is the largest producer of basmati rice in India with key brands like Daawat in India, Royal in USA and ecolife(organic food). Growing demand for basmati and limited supply ther will be a steady growth in the revenue os the company. 45% of the revenue of the company comes from domestic market. The revenue will improve as more consumers are moving towards branded foods. 55% of the revenue is from export mainly to USA, Europe and Middle East. In order to tap the European Market a new rice processing plant with 60000 MT was set up in Rotterdam(Netherlands). The company has acquired Gold Seal Indus Valley and Rozana brand from HUL in order to strengthen its footprint in Middle East.

In addition to the existing products the company has diversified into value added products (saute sauces, Rice based snacks in JV with Kameda) and organic foods (brand eco life) are high growth segments for the company.

Looking at the consistent revenue growth and profitability improvements over years on account of rising share of branded business(resulting in stable margins), geographical expansion and product innovation (organic foods, value added products) it is expected to have a revenue growth of 12% in the coming quarters. The stock can be bought at the CMP with a short term target of Rs.125/-.