LT Foods Share Price Analyzed

LT Foods’ stock price dropped significantly on Tuesday, hitting a six-month low. The price fell by 7% to ₹365, driven by concerns about potential tariffs on rice imports from India, specifically discussed by US President Donald Trump. This drop is part of a larger trend affecting rice stocks.

Key Points

• Stock fell 7% to ₹365 due to tariff concerns.
• Significant drop from 52-week high of ₹518.35.
• US market (46% of revenue) is a key risk factor.
• Basmati rice exports to US (~$380M in 2024).
• Royal brand dominates US basmati rice market (54% share).
• Ongoing legal issues (countervailing duty) add uncertainty.

The current situation is worrying for LT Foods, as a large part of their business relies on selling rice in the United States. The US government, led by President Trump, is considering placing taxes on rice coming from India. This could make LT Foods’ products more expensive for American customers.

LT Foods is a global company that makes and sells rice and rice-based foods. They sell their products all over the world, including India, the United States, the United Kingdom, Europe, the Middle East, and Asia. Their most popular brands are DAAWAT (a well-known Basmati rice brand in India) and Royal, which is sold mainly in North America.

The US market is very important to LT Foods. Around half of their total sales – about 46% – come from the United States. They’ve been growing their business there, with sales increasing by 47% over the past year, even without considering a recent tariff. This means that if the US government starts charging extra taxes on imported rice, it could seriously hurt LT Foods’ profits.

A large part of the US rice market is controlled by LT Foods, particularly through its Royal brand. Royal holds a dominant position, commanding 54% of the market share for Basmati rice in the US and 61% share in the total Basmati Rice import in the US. This gives them a strong presence, but also makes them vulnerable to any changes in US trade policies.

Despite the challenging situation, analysts at Ind-Ra believe LT Foods’ profits will remain strong in the near future. They think the company’s business in other countries is growing, and that there isn’t much competition in the US rice market. Indian suppliers currently have over 80% of the market share, and rice is a basic food item, so people will continue to buy it even if it’s more expensive.

However, there’s also another problem for LT Foods. In June 2025, the US government accused LT Foods’ subsidiary, Ecopure Specialities Limited (ESL), of selling soybeans at unfairly low prices. As a result, the government imposed a hefty tax of ₹170 crore (about $22 million) on ESL. This legal battle is still ongoing and is expected to be resolved by January 2026. The outcome of this case will be closely watched.

“Ultimately, the ability of LT Foods to manage these multiple pressures – trade tariffs and legal challenges – will determine its future success.”