KRBL Vs LT Foods – Best FMCG Stocks

Company Overview of LT Foods Ltd

​LT Foods Limited is a leading Indian-origin global fast-moving consumer goods (FMCG) company specializing in specialty rice and rice-based food products. Established over 70 years ago, the company operates in more than 80 countries, including India, the United States, the United Kingdom, Europe, the Middle East and the Far East. Its flagship brands, Daawat and Royal, are renowned for premium Basmati rice offerings. 

Additionally, LT Foods provides organic staples through its Ecolife brand and supplies organic agricultural ingredients to businesses worldwide. The company’s integrated operations encompass contract farming, procurement, storage, processing, packaging and distribution, ensuring quality from farm to fork. ​

Company Overview of KRBL Ltd

KRBL Limited is a prominent Indian rice processing and exporting company, renowned as the world’s largest basmati rice producer. Founded in 1889 by Khushi Ram and Behari Lal, the company has evolved over 130 years into a market leader with fully integrated operations across the basmati value chain, including seed development, contract farming, procurement, storage, processing, packaging, branding and marketing. 

KRBL’s flagship brand, India Gate, is recognized as the world’s number one basmati rice brand. The company exports its products to over 90 countries across six continents, with a significant presence in the Middle East. KRBL operates the world’s largest rice milling plant in Punjab, India and maintains an extensive contract farming network, ensuring high-quality produce.  

The Stock Performance of LT Foods Limited

The table below displays the month-by-month stock performance of LT Foods Ltd for the past year.

The Stock Performance of KRBL Limited

The table below displays the month-by-month stock performance of KRBL Ltd for the past year.

Fundamental Analysis of LT Foods Ltd

LT Foods Ltd is a prominent player in the global food industry, specializing in the production and distribution of rice and other food products. Established in India, the company has built a strong reputation for its high-quality offerings, including branded rice products like Daawat and other food items. With a commitment to sustainability and innovation, LT Foods has expanded its operations internationally, catering to diverse markets and fostering a loyal customer base.   

The stock is priced at ₹334.55 with a market cap of ₹11,867.37 crore. It offers a dividend yield of 0.15%, with a 1-year return of 105.75%. Over 5 years, it has achieved a CAGR of 82.12% and a 5-year average net profit margin of 5.76%.

• Close Price ( ₹ ): 334.55
• Market Cap ( Cr ): 11867.37
• Dividend Yield %: 0.15
• 1Y Return %: 105.75
• 6M Return %: -17.92
• 1M Return %: -12.82
• 5Y CAGR %: 82.12
• % Away From 52W High: 34.99
• 5Y Avg Net Profit Margin %: 5.76 

Fundamental Analysis of KRBL Limited

KRBL Limited is a prominent Indian company renowned for its production and exporting of basmati rice. Established in 1889, KRBL has evolved into one of the largest integrated rice companies in the country. With a commitment to quality, it offers a variety of rice products, catering to both the domestic and international markets. The brand is well-regarded for its premium basmati rice, which is popular among consumers for its aroma and flavor.  

The stock is priced at ₹261.70 with a market cap of ₹6,041.55 crore. It offers a dividend yield of 1.52%, with a 1-year return of -8.06%. Over 5 years, it has achieved a CAGR of 2.75% and maintains a 5-year average net profit margin of 12.16%.

• Close Price ( ₹ ): 261.70
• Market Cap ( Cr ): 6041.55
• Dividend Yield %: 1.52
• 1Y Return %: -8.06
• 6M Return %: -13.97
• 1M Return %: -6.78
• 5Y CAGR %: 2.75
• % Away From 52W High: 33.24
• 5Y Avg Net Profit Margin %: 12.16 

Financial Comparison of LT Foods and KRBL

The table below shows a financial comparison of LT Foods Ltd and KRBL Ltd.

Points to be noted:

• (TTM) Trailing 12 Months – Trailing 12 months (TTM) is used to describe the past 12 consecutive months of a company’s performance data when reporting financial figures.
• EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
• PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
• PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
• Net Income: Represents the company’s total profit after all expenses, including taxes and interest, are deducted.
• EPS (Earnings Per Share): Shows the portion of a company’s profit allocated to each outstanding share of stock.
• DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
• Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.

Dividend of LT Foods Limited and KRBL Limited

LT Foods Limited consistently provides dividends with regular interim and final payouts, ensuring stable shareholder returns. KRBL Limited offers higher dividend payouts, reflecting strong financial performance. Both companies maintain a solid dividend history, making them attractive for investors. Check the table for complete details. 

Points to be noted:

• (TTM) Trailing 12 Months – Trailing 12 months (TTM) is used to describe the past 12 consecutive months of a company’s performance data when reporting financial figures.
• EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
• PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
• PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
• Net Income: This represents the company’s total profit after all expenses, including taxes and interest, are deducted.
• EPS (Earnings Per Share): This shows the portion of a company’s profit allocated to each outstanding share of stock.
• DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
• Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.

Advantages and Disadvantages of Investing in LT Foods Limited

LT Foods Ltd

The primary advantage of LT Foods Ltd is its strong position in the FMCG and specialty rice market, with a diverse portfolio of premium basmati rice and organic food products. Its global presence and integrated supply chain ensure steady growth and business expansion.

1. Strong Brand Portfolio – LT Foods owns popular brands like Daawat and Royal, making it a market leader in premium basmati rice. These brands have strong consumer trust, ensuring high demand in both domestic and international markets.
   
2. Global Market Presence – The company exports to over 80 countries, including the U.S., U.K., Europe and the Middle East. Its wide distribution network helps mitigate risks associated with regional economic downturns.
   
3. Integrated Supply Chain – LT Foods controls the entire value chain, from contract farming and procurement to packaging and distribution. This ensures consistent quality, cost efficiency and a strong competitive edge in the rice industry.
   
4. Growing Organic & Healthy Foods Segment – Through its Ecolife brand, LT Foods is expanding into organic and health-conscious food segments. This strategic shift aligns with the rising global demand for sustainable and healthy food products, boosting long-term growth prospects.

The main disadvantage of LT Foods Ltd is its dependence on the rice industry, making it vulnerable to fluctuations in agricultural output, climate change and government regulations. Any disruption in rice production or trade policies can significantly impact its revenue and profitability.

1. Dependence on Basmati Rice Sales – A major portion of LT Foods’ revenue comes from basmati rice, limiting diversification. Any decline in demand, export restrictions, or price fluctuations can directly impact the company’s financial performance and market growth.
   
2. Impact of Climate Change – As an agriculture-based company, LT Foods is heavily affected by weather conditions, monsoons and water availability. Poor harvests due to droughts or floods can lead to increased costs and reduced supply, affecting profitability.
   
3. Regulatory & Trade Restrictions – Government-imposed export restrictions, import duties and food safety regulations can affect LT Foods’ international trade. Sudden changes in agricultural policies or bans on chemical residues in exports may create operational and compliance challenges.
   
4. Intense Market Competition – The rice industry is highly competitive, with strong players like KRBL Ltd and Kohinoor Foods. Price wars and aggressive marketing by competitors can affect LT Foods’ market share and limit its pricing power.

Advantages and Disadvantages of Investing in KRBL Ltd

KRBL Ltd

The primary advantage of KRBL Ltd is its position as the world’s largest basmati rice producer and exporter, with a well-integrated supply chain. Its flagship brand, India Gate, dominates the market, ensuring strong demand, consistent revenue and a competitive edge in the FMCG sector.

1. Market Leadership in Basmati Rice – KRBL’s India Gate brand is the world’s No.1 basmati rice brand, enjoying strong domestic and global demand. Its reputation for quality gives it a significant advantage over competitors in the premium rice segment.
   
2. Global Export Presence – The company exports to over 90 countries, including the Middle East, the U.S. and Europe. This diversified geographic reach helps mitigate risks from regional economic downturns or regulatory challenges in specific markets.
   
3. Strong Backward Integration – KRBL controls the entire basmati rice value chain, from seed development and contract farming to milling and packaging. This integrated approach ensures consistent quality, cost control and supply chain efficiency.
   
4. Sustainable & Organic Expansion – With growing demand for organic and pesticide-free rice, KRBL is expanding its organic farming and eco-friendly processing initiatives. This shift helps cater to the evolving preferences of health-conscious consumers worldwide.

The main disadvantage of KRBL Ltd is its heavy reliance on basmati rice, making it vulnerable to fluctuations in crop yield, export policies and global demand. Any disruption in the rice industry can significantly impact its revenue and profitability.

1. Dependence on Basmati Rice – KRBL’s revenue is largely dependent on basmati rice sales, limiting diversification. Any decline in global demand, export restrictions, or price fluctuations can directly affect its business performance and long-term growth potential.
   
2. Exposure to Climate Risks – Being an agriculture-based company, KRBL is highly affected by monsoons, droughts and unpredictable weather patterns. Poor harvests due to climate change can lead to supply shortages, increased costs and reduced profitability.
   
3. Government Regulations & Export Policies – Changes in export policies, minimum support prices (MSP) and import restrictions can negatively impact KRBL’s international business. Stringent quality regulations in foreign markets can also pose challenges for exports.
   
4. Strong Market Competition – KRBL competes with LT Foods, Kohinoor Foods and other regional brands in the premium rice segment. Intense competition can lead to price pressures, reduced margins and aggressive marketing expenses to retain market share.

How to Invest in KRBL and LT Foods Stocks?

Suppose you’re interested in investing in KRBL and LT Foods Stocks. In that case, you can do so effortlessly through Alice Blue, which offers zero brokerage on equity delivery trades, allowing you to purchase stocks without any additional charges.

Step 1: Open a Demat & Trading Account

• Visit the Alice Blue website.
• Click on “Open Demat Account” and complete the registration process.
• Upload your PAN, Aadhaar and bank details for verification.

Step 2: Fund Your Trading Account

• Log in to Alice Blue and navigate to the Funds section.
• Deposit money using UPI, Net Banking, or NEFT/RTGS for seamless transactions.

Step 3: Search & Analyze KRBL and LT Foods Stocks

• Use the search bar to find KRBL and LT Foods Stocks.
• Review the stock’s market price, charts and company insights before making a decision.

Step 4: Place Your Buy Order

• Click “Buy” and select either a Market Order (instant purchase) or a Limit Order (buy at a specified price).
• Enter the quantity and confirm your order to complete the purchase.

LT Foods vs. KRBL Limited- Conclusion

LT Foods is a strong player in the FMCG and basmati rice industry, with well-known brands like Daawat and Royal. Its global presence, integrated supply chain and organic expansion drive growth. However, reliance on agriculture and export regulations poses challenges for long-term stability.

KRBL is the world’s largest basmati rice producer, with a dominant market share through India Gate. Its global reach, backward integration and premium branding ensure strong profitability. However, climate risks, government policies and intense competition affect its business, making diversification a key factor for future growth.

LT Foods vs. KRBL – FAQ

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.