Motilal Oswal has issued a buy rating on LT Foods with a target price of ₹500 in its research report dated April 10, 2026. According to reports from Moneycontrol, the brokerage firm believes LT Foods stands at a compelling strategic inflection point where external catalysts and internal financial discipline collectively reinforce the investment thesis.
The company's US business, representing approximately 46% of revenue, has successfully passed on the majority of the 50% US tariff burden to customers, as reported by Moneycontrol. The new 10% US tariff rate now unlocks volume upside, margin recapture, and competitive parity against Pakistani basmati, converting what was a six-month earnings headwind into a durable structural tailwind.
Basmati paddy prices rose approximately 12% in crop 2025, driven by flood-induced yield shortfalls across Punjab's basmati belt, according to Moneycontrol reports. While this translates into an 830-940 basis points gross margin headwind in isolation, LT Foods' aged inventory model, premium export realizations of ₹144 per kg, and improving working capital discipline collectively contain the actual earnings impact.
Motilal Oswal expects LT Foods to report a CAGR of 17%/18%/18% in revenue/EBITDA/PAT over FY25-28, as reported by Moneycontrol. The brokerage values LT Foods at 17x FY28E EPS to arrive at the target price of ₹500, reiterating their buy recommendation.
