Domestic brokerage firm Motilal Oswal has recommended a buy on small cap company LT Foods. According to the brokerage house's report, rice producer company LT Foods has a very strong market share. Along with this, the company has huge growth plans in the international market and the consumption of Basmati products is also increasing, which has created further growth opportunities for the stock.

Looking at the estimates for the future, Motilal Oswal has given a target of 520 for the stock. The stock is currently below the level of 400. That is, the stock is expected to return more than 30 percent from here.

What was said in the report The brokerage house said in its report that LT Foods has created strong brands of Basmati rice, with the help of which the company's share in the segment has also been strong. With a market share of 30 percent in India and 50 percent in the US, the company is aiming for double digit growth. According to the brokerage house, the company will get direct benefit if the demand for Basmati rice increases due to strong brands and market hold. The company has registered a CAGR of 17 percent in international revenue between FY 19 and 24. The company has benefited from expansion in the US and Europe, while the Middle East market has seen a growth of 26 percent in FY 2024. How was the stock performance The stock has proved to be a high return stock for its investors. In the last three years, the stock has given a return of 473 percent to investors. That is, the stock has increased about 6 times during this period. In the last one year, the stock has given a return of 95 percent and 92 percent so far in the year 2024. At the same time, the stock has increased by 28 percent in the last 3 months.