Shares of LT Foods
gained 2% on the BSE in afternoon trade. The company has decided to make an investment of Rs20cr in the form of preference shares in its majority-owned subsidiary company Daawat Foods Limited (DFL) to strengthen the balance sheet of DFL and improve its current ratio.
Daawat Foods Limited serves as the manufacturing arm of LT Foods Limited. In FY18, Daawat Foods reported revenue of Rs912cr (5-year CAGR of more than 15%), EBITDA of Rs105cr and PAT of Rs33cr, the company said in the filing.
LT Foods Ltd is currently trading at Rs37.55 up by Rs0.65 or 1.76% from its previous closing of Rs36.90 on the BSE. The scrip opened at Rs37.95 and has touched a high and low of Rs39.50 and Rs37.50 respectively.