Shares of LT Overseas, KRBL and Chaman Lal Setia Exports have rallied by up to 11 per cent on the BSE in Tuesday’s intra-day trade on Iran-Israel ceasefire

SI Reporter Mumbai

Shares of listed basmati rice exporters LT Foods, KRBL and Chaman Lal Setia Exports rallied by up to 11 per cent on the BSE in Tuesday’s intra-day trade after Iran–Israel ceasefire, announced by US President Donald Trump, raising hopes that the worst of the West Asia conflict is behind. 

In the past two weeks until Monday, these stocks were down in the range of 9 per cent to 14 per cent on the BSE due to the recent 12-day conflict between Israel and Iran.

Rice exports to West Asia

 West Asia, representing 74 per cent of India’s Basmati rice exports, remains a pivotal market. The region’s market presents a substantial growth opportunity for Basmati rice, driven by a combination of demographic, economic, and consumer trends. With a population of approximately 280 million and a significant portion of India’s Basmati rice exports already directed to the region, the demand is robust, according to LT Foods.

India is forecasted to remain the largest rice exporter in 2025, with exports projected at 18 million tonnes, up 1.5 million tonnes from the previous year and accounting for over a third of global rice trade.

Rice stocks rally

 Among the individual stocks, LT Foods, which owns the flagship rice brand ‘Daawat’,  has surged 11 per cent to ₹448.90 on the back of a three-fold jump in average trading volumes. On Monday, the stock was down 7 per cent after the company disclosed that its fellow subsidiary, Ecopure Specialities,  has received a preliminary notice, levying 340 per cent of countervailing duty (CVD) on sales pertaining to the period January-December 23, amounting to ₹50 crore. However, the company said it does not expect a material impact on future earnings, based on the information available to the company to date.

LT Foods reported healthy performance in FY25, led by both India and international markets. Going ahead, Motilal Oswal Financial Services expects this momentum to continue, led by improving volumes in the basmati and other speciality rice segment, margin expansion supported by lower input prices and freight normalisation, and an increasing mix of organic and convenience and health segments. 

LT Foods is a leading Indian-origin global Fast Moving Consumer Goods (FMCG) company in the consumer food space. It is a leading player globally in the specialty rice and rice-based foods business, across India, the US, UK, Europe, the Middle East, the Far East and the Rest of the World. The company’s flagship brands include one of India’s most loved and consumed Basmati brands, Royal, which is North America’s most loved brand and many more.

Shares of KRBL soared 9 per cent to ₹362.60 on the BSE. KRBL derives approximately 58 per cent of its basmati export revenue from the West Asia region, with notable growth in Kuwait, Bahrain, and Oman. Shares of Chaman Lal Setia Exports rallied 8 per cent to ₹357.50 on the BSE.

Published Date: June 24, 2025