Sharing whatever little I understand considering last 5 years. India Gate is a strong brand of aged basmati rice which is reflected in their margin (14-21%) which fluctuates with RM cost and other factors. Chamanlal Setia does not age rice so OPM is lower but still fluctuates widely (8-14%). LT food appears to be following an approach to either invest profits back into strengthening business by innovations, efficiency etc. or passing on benefits to customers to maintain its 12% margin even in good years. Considering the risk scenario you mentioned, they should not need to put anything even in bad years as the margin in aged branded basmati rice from india gate is always northwards of 10%.
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