Stock Market today: KRBL Ltd, LT Foods Ltd, Kohinoor Foods Ltd and others saw their share prices rise up to 19% during morning trades on Monday as the government removed the minimum export price (MEP) on basmati rice with immediate effect.
Kohinoor Foods share price was the largest gainer with almost 19% gains seen during the intraday trades on Monday on the BSE
Other prominent rice exporters include companies as Chaman Lal Setia Exports Ltd, GRM Overseas Ltd, Mishtann Foods Ltd, Sarvesh Foods, Lakshmi Energy and Foods Limited. Adani Wilmar Ltd, whose share prices also got the boost on Basmati rice minimum export price removal by the government.
The commerce ministry issued an order on Friday stating that the government has immediately removed the minimum export price (MEP) for onions and basmati rice.
The market participants are expecting a spike in exports after Minimum export price being removed benefitting KRBL, LT Foods, Kohinoor Foods, Chaman Lal Setia Exports Ltd, GRM Overseas Ltd, Mishtann Foods Ltd, Sarvesh Foods, Lakshmi Energy and Foods Limited. Adani Wilmar and others share prices.
Even companies at Kaveri Seed Company ltd share price is expected to gain being exporter of rice and other seeds.
The good rainfall in the country is likely to remain supportive for rice production and hence higher exports further can boost the earnings and share prices of rice exporting companies said analysts.
The growing acreage of crops as Rice and wheat already have been benefitting various states. Over the last two decades, the area sown under rice has increased to 13 per cent in states like Madhya Pradesh As per Dolat Capital data. A good rainfall this year will further boost the crop acreage further.
Stocks as KRBL also had remained technical picks of various analysts as those at Prabhudas Lilladher for significant upside.
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