LT Foods hit its new high of Rs 51, up 9% on the BSE in the late afternoon trade, on the back of heavy volumes in an otherwise weak market after the stock turned ex-stock split in the ratio of 1:10.
LT Foods had announced on November 14, 2016 splitting its stock from the current face value of Rs 10 each to Re 1 each to enhance liquidity in trading. The market price of the company has witnessed significant increase over the last few years.
The stock of the company engaged in the manufacture and sale of rice under the brand DAAWAT has nearly doubled in past three months from Rs 26.20 (adjusted to stock split). In comparison, the S&P BSE Sensex was up 3% during the same period.
At 02:42 pm; the stock was up 6% at Rs 50 as compared to 0.63% rise in the benchmark index. A combined 2.75 million shares have already changed hands on the counter against an average sub 0.5 million shares were traded daily in past two weeks before stock split.
Meanwhile, the board of directors of LT Foods is scheduled to meet on Thursday, February 09, 2017, to consider the unaudited financial results of the company for the quarter ended December 31, 2016 (Q3FY17).
In medium to long term, the company expects EBITDA (earnings before interest, tax, depreciation and amortization) margins will expand by around 200 basis points led by improvement in manufacturing efficiency, increase in scale and change in product mix.