KRBL- The King of Basmati rice

Few reasons I think…

1. Overhang of the allegations of involvement in a defence related wrongdoing.
2. Growth rate of KRBL in revenues and profits has been less as compared to LT Foods.
3. One reasons for KRBL’s sub-optimal growth could also be the delay in appointing distributor for one of the Middle East countries.
4. LT Foods has improved its debt:equity ratio over the last few years.
5. Because of better growth and D:E ratio, there has been a good rerating of the PE multiple in case of LT Foods.

Disc: invested