LT Foods hits all-time high price, KRBL and other rice stocks buzz as centre likely to relax restrictions on rice export

LT Foods, KRBL shares and other rice stocks including GRM Overseas, Kohinoor Foods among others started Tuesday’s trade (July 9) on a strong note amid news that the centre might relax restrictions imposed on some of the rice varieties in order to avoid excess supply. The new rice crop will reach the market in October. 

LT Foods shares gained over 15 per cent to notch a fresh 52-week high of Rs 297.95 and at the last count traded higher by nearly 10 per cent at Rs 283.1. Meanwhile KRBL, Kohinoor Foods, Mishtann Foods, GRM Overseas and Chaman Lal Setia among others traded with decent gains of up to 12 per cent.

As per sources, a decision to this effect may be taken in the GoM meeting chaired by the Home Minister. The approval for rice export can be granted together with a decision on the MEP or minimum export price. 

Furthermore, the government may slash export duty on parboiled rice. Besides, the government continues to mull basmati export MEP and a decision on the same can be expected in due course. 

Notably, on July 5, the commerce ministry sent the proposal to GoM for reducing the MEP to $800 per ton from $950 per ton.

LT Foods is a multibagger scrip and in the last one year has doubled investors' money. The stock’s 52-week low and high prices are Rs 124 and Rs 275 per share, respectively. The stock on the previous day closed at Rs 258.6.

On the other hand, KRBL is an underperformer with a negative return of around 12 per cent. The stock’s 52-week low and high prices are Rs 258.2  and Rs 480.9 per share, respectively. The stock last closed at Rs 308.7, down as much as 34 per cent from 52-week high price. 

Recommendation on LT Foods

Kunal Saraogi of Equityrush says that the chart of the stock shows strong structure and those having positions in the stock may continue to hold. He also iterated that the latest news may also spur an uptick in the stock.