KRBL Limited stands as the global leader in basmati rice production, boasting a fully integrated operation spanning the entire value chain of basmati rice. From pioneering seed development to contract farming, paddy procurement, storage, processing, packaging, branding, and marketing, KRBL ensures quality at every step.
In this article, we delve into the comprehensive facets of KRBL’s operations, exploring its industry-leading practices, innovative approaches, and its pivotal role in shaping the world of basmati rice production and distribution. Join us as we uncover the story and strategies behind this prominent player in the agricultural sector.
About KRBL Ltd
KRBL Limited, India’s pioneering integrated rice company with a remarkable 120-year legacy, stands as a major producer of both basmati and non-basmati rice, alongside milling by-products such as bran oil, furfural, rice bran, and de-oiled cakes. Renowned for its leadership in the global rice market, KRBL is India’s largest exporter of branded basmati rice, with its flagship brand ‘India Gate’ recognized as the world’s number one basmati rice brand. The company boasts the largest contract farming network for rice and operates the world’s largest rice milling capacity from its expansive plant in Punjab.
KRBL’s diverse brand portfolio includes esteemed names like ‘Taj Mahal’, ‘Doon’, ‘Nur Jahan’, ‘Bemisal’, and ‘Unity’, alongside its iconic ‘India Gate’ label. In recent years, KRBL has showcased its innovative prowess by launching new products such as ‘India Gate Quinoa’, ‘India Gate Sprouted Brown Rice’, ‘India Gate Flax Seed’, and ‘India Gate Chia Seed’. Notably, in April 2021, the company introduced ‘India Gate rice flour’ into the domestic market, further expanding its product offerings and reinforcing its commitment to quality and innovation in the rice industry.
Below are the trading platforms that you can use to purchase KRBL shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
KRBL’s Q3 Performance: Profit Decline Amidst Weak Export Demand
- KRBL, a leading Indian basmati rice processor, experienced a significant drop in third-quarter profit, primarily due to weak demand for its India Gate basmati rice brand in international markets.
- Consolidated net profit for the quarter ended December 31 was 1.34 billion rupees ($16.1 million), down from 2.05 billion rupees in the same period a year earlier.
- This marks the company’s second consecutive quarterly profit decline, following a streak of five quarters of growth.
- Export revenue plummeted by 47%, contributing to an overall decline in total revenue from operations by 6.4% to 14.37 billion rupees.
- KRBL derives more than two-thirds of its revenue from the Middle East, the world’s largest consumer of basmati rice.
- Revenue from the agricultural segment, which includes the India Gate basmati rice brand, non-basmati rice, seed, and bran, dropped by about 7%. This segment accounts for more than 90% of the company’s total revenue.
- In contrast, rival LT Foods, owner of the Daawat brand, reported a nearly 37% increase in quarterly profit during the same period.
| When | Maximum Price | Minimum Price |
| May 2024 | 308.88 | 268.59 |
| June 2024 | 320.00 | 278.26 |
| July 2024 | 316.80 | 275.48 |
| August 2024 | 329.47 | 286.50 |
| September 2024 | 342.65 | 297.96 |
| October 2024 | 335.93 | 292.11 |
| November 2024 | 346.01 | 300.88 |
| December 2024 | 354.66 | 308.40 |
In May 2024, KRBL’s share price is at ₹286, with a maximum target of ₹308.88 and a minimum target of ₹268.59 by the end of the month. Over the subsequent months, the share price targets continue to rise steadily, reaching a maximum target of ₹354.66 by December 2024. This indicates a positive trend in projected share prices for KRBL over the year.
The company’s market capitalization stands at ₹6,551 crore. The stock’s current price-to-earnings (P/E) ratio is 10.9, with a book value of ₹201. With a high of ₹471 and a low of ₹276, the stock’s performance reflects a potential for growth and value appreciation in the coming months, as indicated by the projected price targets.
| When | Maximum Price | Minimum Price |
| January 2025 | 361.75 | 278.27 |
| February 2025 | 371.03 | 285.41 |
| March 2025 | 385.50 | 296.54 |
| April 2025 | 377.94 | 290.72 |
| May 2025 | 366.93 | 282.26 |
| June 2025 | 383.44 | 294.96 |
| July 2025 | 375.93 | 289.17 |
| August 2025 | 387.55 | 298.12 |
| September 2025 | 401.12 | 308.55 |
| October 2025 | 411.55 | 316.57 |
| November 2025 | 421.83 | 324.49 |
| December 2025 | 432.38 | 332.60 |
₹361.75 in January to ₹432.38 by December. The minimum price targets also show an upward trend, ranging from ₹278.27 to ₹332.60 over the months. These forecasts suggest optimism and potential appreciation in KRBL’s share value throughout the year.
Alongside this positive trajectory, KRBL is expanding its domestic market reach through regional rice segments, which contributed 5.9% to the company’s domestic revenue in Q2FY24. The company’s widespread presence includes over 800 dealers and distributors across India, with more than 3.87 lakh retail outlets operating in over 750 cities. Notably, around 50,000 new outlets were added in Q1FY24, underscoring KRBL’s strategic expansion efforts.
| When | Maximum Price | Minimum Price |
| January 2026 | 445.35 | 342.58 |
| February 2026 | 456.77 | 351.36 |
| March 2026 | 474.59 | 365.07 |
| April 2026 | 465.28 | 357.91 |
| May 2026 | 451.73 | 347.48 |
| June 2026 | 472.06 | 363.12 |
| July 2026 | 462.80 | 356.00 |
| August 2026 | 477.11 | 367.01 |
| September 2026 | 493.81 | 379.86 |
| October 2026 | 506.65 | 389.73 |
| November 2026 | 519.32 | 399.47 |
| December 2026 | 532.30 | 409.46 |
In 2026, KRBL’s share price targets continue to exhibit an upward trajectory, reflecting positive market sentiment and growth prospects. The projected maximum share prices range from ₹445.35 in January to ₹532.30 by December, while the minimum targets also show steady appreciation, ranging from ₹342.58 to ₹409.46 over the months.
Additionally, KRBL is expanding its global footprint by exporting basmati rice products to over 90 countries across six continents. Notably, the company dominates the branded basmati rice market and maintains a robust presence in key Middle Eastern markets, contributing significantly to its export sales, with the region accounting for nearly 67% of total export sales during FY23.
| When | Maximum Price | Minimum Price |
| January 2027 | 542.95 | 417.65 |
| February 2027 | 556.87 | 428.36 |
| March 2027 | 578.59 | 445.07 |
| April 2027 | 567.24 | 436.34 |
| May 2027 | 550.72 | 423.63 |
| June 2027 | 575.50 | 442.69 |
| July 2027 | 564.22 | 434.01 |
| August 2027 | 581.67 | 447.44 |
| September 2027 | 602.03 | 463.10 |
| October 2027 | 617.68 | 475.14 |
| November 2027 | 633.12 | 487.02 |
| December 2027 | 648.95 | 499.19 |
In 2027, KRBL’s share price targets continue to show robust growth, with maximum projected prices reaching as high as ₹648.95 in December and minimum targets ranging from ₹417.65 to ₹499.19 throughout the year. This upward trajectory reflects sustained positive investor sentiment and market optimism surrounding KRBL’s performance and outlook.
Furthermore, KRBL maintains high production capacities, including a paddy milling capacity of up to 195 MT per hour, which is the world’s highest, and a rice processing capacity of 191 MT per hour, one of the largest globally. The company also boasts extensive rice and paddy storage capabilities, with a capacity exceeding 1 million MT. Notably, KRBL operates the world’s largest rice milling plant in Punjab and commenced commercial production at a new plant in Anjar, Gujarat, in June 2023, further strengthening its operational footprint and capacity.
| When | Maximum Price | Minimum Price |
| January 2028 | 661.93 | 509.17 |
| February 2028 | 678.90 | 522.23 |
| March 2028 | 705.38 | 542.60 |
| April 2028 | 691.55 | 531.96 |
| May 2028 | 671.40 | 516.46 |
| June 2028 | 701.62 | 539.71 |
| July 2028 | 687.86 | 529.12 |
| August 2028 | 709.13 | 545.49 |
| September 2028 | 733.95 | 564.58 |
| October 2028 | 753.04 | 579.26 |
| November 2028 | 771.86 | 593.74 |
| December 2028 | 791.16 | 608.58 |
- January 2028: ₹509.17 (Minimum)
- December 2028: ₹791.16 (Maximum)
| When | Maximum Price | Minimum Price |
| January 2029 | 806.98 | 620.76 |
| February 2029 | 827.67 | 636.67 |
| March 2029 | 859.95 | 661.50 |
| April 2029 | 843.09 | 648.53 |
| May 2029 | 818.53 | 629.64 |
| June 2029 | 855.37 | 657.98 |
| July 2029 | 838.60 | 645.07 |
| August 2029 | 864.53 | 665.03 |
| September 2029 | 894.79 | 688.30 |
| October 2029 | 918.06 | 706.20 |
| November 2029 | 941.01 | 723.85 |
| December 2029 | 964.53 | 741.95 |
- January 2029: ₹620.76 (Minimum)
- December 2029: ₹964.53 (Maximum)
| When | Maximum Price | Minimum Price |
| January 2030 | 983.82 | 756.79 |
| February 2030 | 1,009.05 | 776.19 |
| March 2030 | 1,048.40 | 806.46 |
| April 2030 | 1,027.85 | 790.65 |
| May 2030 | 997.91 | 767.62 |
| June 2030 | 1,042.81 | 802.16 |
| July 2030 | 1,022.37 | 786.44 |
| August 2030 | 1,053.99 | 810.76 |
| September 2030 | 1,090.88 | 839.14 |
| October 2030 | 1,119.24 | 860.95 |
| November 2030 | 1,147.22 | 882.48 |
| December 2030 | 1,175.90 | 904.54 |
- January 2030: ₹756.79 (Minimum)
- December 2030: ₹1,175.90 (Maximum)
Financial Condition of KRBL Ltd: Last 5 Years
| Financials | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Sales (Rs. Crores) | 4,120 | 4,499 | 3,992 | 4,211 | 5,363 |
| Expenses (Rs. Crores) | 3,271 | 3,629 | 3,170 | 3,549 | 4,424 |
| Operating Profit (Rs. Crores) | 850 | 870 | 822 | 662 | 939 |
| Other Income (Rs. Crores) | 15 | 23 | 23 | 43 | 92 |
| Interest (Rs. Crores) | 68 | 62 | 24 | 13 | 15 |
| Depreciation (Rs. Crores) | 64 | 73 | 72 | 74 | 76 |
| Profit before Tax (Rs. Crores) | 733 | 758 | 749 | 617 | 941 |
| Net Profit (Rs. Crores) | 503 | 558 | 559 | 459 | 701 |
| Earnings per Share (Rs.) | 21.37 | 23.71 | 23.74 | 19.52 | 29.78 |
- KRBL Ltd has witnessed fluctuating financial performance over the past five years.
- Sales grew from Rs. 4,120 crores in 2019 to Rs. 5,363 crores in 2023, representing a compounded sales growth rate of 5% in the trailing twelve months (TTM).
- Expenses also increased during this period, impacting overall profitability.
- Operating profit varied, reaching a peak of Rs. 939 crores in 2023.
- Other income consistently grew, reaching Rs. 92 crores in 2023.
- Net profit showed a modest increase, reaching Rs. 701 crores in 2023.
- Earnings per share (EPS) experienced notable growth, rising from Rs. 21.37 in 2019 to Rs. 29.78 in 2023.
- KRBL’s compounded profit growth over the last five years was 10%, while the TTM figure showed a decline of 13%.
- Stock price performance has been volatile, with a negative 2% compounded annual growth rate (CAGR) over the last five years and a significant drop of 25% in the past year.
- Return on equity (ROE) has remained relatively stable around 16% over the last five years, indicating consistent profitability relative to shareholders’ equity.
FAQs
What is KRBL Ltd’s current market capitalization?
KRBL Ltd’s current market capitalization is ₹6,551 crore.
As of May 7th, 2024, KRBL Ltd’s share price is ₹286.
The share price targets for KRBL in 2025 range from ₹361.75 to ₹432.38, while in 2030, the targets range from ₹983.82 to ₹1,175.90.
What is the compounded profit growth rate for KRBL Ltd over the last five years?
KRBL Ltd’s compounded profit growth rate over the last five years was 10%, with the TTM figure showing a decline of 13%.
What is the current price-to-earnings (P/E) ratio of KRBL Ltd?
KRBL Ltd’s current stock P/E ratio is 10.9.
What are the dividend payout percentages for KRBL Ltd over recent years?
KRBL Ltd’s dividend payout percentages over the last few years have been: 10 years – average of 13%, 5 years – average of 14%, 3 years – average of 15%, Last year – 16%.
KRBL Ltd’s book value per share is ₹201.
What was the operating profit of KRBL Ltd in 2023?
KRBL Ltd’s operating profit in 2023 was ₹939 crores.
In conclusion, KRBL Limited stands out as a dominant force in the global basmati rice market, leveraging a robust integrated operation encompassing seed development, farming, milling, and distribution. With a rich legacy of 120 years, KRBL leads in branded basmati rice exports, exemplified by its flagship ‘India Gate’ brand. The company’s innovative product range, coupled with strategic expansions in both domestic and international markets, underscores its commitment to quality and growth.
Despite recent profit declines attributed to export challenges, KRBL remains poised for growth, as indicated by optimistic share price targets projecting steady appreciation through 2030. Notably, the company has made significant strides in debt reduction, enhancing financial stability. However, sales growth has been modest over the past five years, highlighting the need for sustained market expansion and innovation.
KRBL’s consistent dividend payouts, although relatively low, reflect its commitment to shareholder returns. The company’s operational prowess, with world-leading milling capacities and extensive market reach, positions it favorably for long-term success in the global rice industry. Moving forward, KRBL’s focus on product diversification, market expansion, and financial discipline will likely drive sustained growth and shareholder value.
What did we learn?
- 1 About KRBL Ltd
- 2 How to Purchase KRBL Shares in India?
- 3 KRBL’s Q3 Performance: Profit Decline Amidst Weak Export Demand
- 4 KRBL Share Price Target 2024 – 2030
- 5 Financial Condition of KRBL Ltd: Last 5 Years
- 6 FAQs
- 6.1 What is KRBL Ltd’s current market capitalization?
- 6.2 What is the current share price of KRBL Ltd?
- 6.3 What are the share price targets for KRBL in 2025 and 2030?
- 6.4 What is the compounded profit growth rate for KRBL Ltd over the last five years?
- 6.5 What is the current price-to-earnings (P/E) ratio of KRBL Ltd?
- 6.6 What are the dividend payout percentages for KRBL Ltd over recent years?
- 6.7 What is KRBL Ltd’s book value per share?
- 6.8 What was the operating profit of KRBL Ltd in 2023?
- 7 Conclusion: Navigating Growth and Innovation in the Global Basmati Rice Market
