LT Foods (BOM:532783) GF Value Rank : 6 (As of Jun. 04, 2024)

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What is LT Foods GF Value Rank?

LT Foods has the GF Value Rank of 6.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of LT Foods's GF Value Rank

For the Packaged Foods subindustry, LT Foods's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

LT Foods's GF Value Rank Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, LT Foods's GF Value Rank distribution charts can be found below:

* The bar in red indicates where LT Foods's GF Value Rank falls into.

LT Foods GF Value Rank Related Terms

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LT Foods (BOM:532783) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » LT Foods Ltd (BOM:532783) » Definitions » GF Value Rank

Traded in Other Exchanges

LTFOODS:India

Address

4th Floor, MVL- I Park, Sector- 15, Near 32nd Milestone, Gurugram, HR, IND, 122001

Website

http://www.ltgroup.in

LT Foods Ltd engages in the milling, processing and marketing of branded and non-branded basmati rice and manufacturing of rice food products. Its rice product portfolio comprises Brown rice, White rice, Steamed rice, Parboiled rice, Organic rice, Quick-cooking rice, Value-added rice and Flavored rice in the ready to cook segment. It operates contract farming, procurement, storage, processing, packaging and distribution; and also engages in the research and development of rice and rice food products. The business activity of the group falls within the reportable segment of Manufacture and storage of rice. It has a business presence in India, America, Europe and other countries. The company's brand profile includes Daawat, Royal, Heritage and Devaaya, among others.

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