LT Foods has received a buy recommendation from Geojit Retail Equity Research with a target price of ₹518, representing significant upside potential from the current market price of ₹393.00. According to the research report, the global consumer specialty company, which focuses on basmati rice, organic foods and ready-to-eat/cook products, is positioned for strong growth despite recent US tariff challenges.
The company delivered robust financial results for Q3FY26, with revenue growing 24% year-on-year (normalised growth at 8% excluding US tariff and Golden Star revenue). As reported by Geojit Retail Equity Research, gross margin improved 70 basis points to 34.2%, while EBITDA margin grew 20 basis points to 11.2%. Despite headwinds from US tariffs, the company demonstrated broad-based strength across geographies including the US, Europe, and West Asia.
LT Foods has set ambitious expansion targets, aiming for ₹1,000 crore revenue each from its recently established manufacturing facility in the UK and expanded distribution in Saudi Arabia over the next five years. According to the research report, the RTC/RTE segment is projected to grow at about 35% and is expected to achieve break-even at around ₹400 crore in revenue by FY27, compared to ₹200 crore in FY25. The company currently has less than 9% exposure to West Asia.
The research highlights that EBITDA margin is expected to improve as the company scales up its value-added segments, with the US tariff reduced to 18% which will aid demand recovery. Geojit values the stock at 17x on FY28 EPS (three-year average 17x) to arrive at the target price of ₹518. The strong focus on regional and product diversification is expected to support healthy earnings growth and re-rating, with the company maintaining presence in over 80 countries globally.
