Lotus Chocolate Company Limited was listed on the Bombay Stock Exchange (BSE) in October 1991. In the last one year, the Lotus Chocolate Company Ltd. gave a massive return of more than 200%. Will it continue to provide such impressive returns this year and in the future? Let’s explore the Lotus Chocolate share target price from 2025 to 2050 in this article.
About Lotus Chocolate
Lotus Chocolate was established in 1989. It specialises in the production and distribution of high-quality cocoa products, chocolates, and confectioneries. Serving various industries, including foodservice and retail. Lotus Chocolate offers cocoa powder, cocoa butter, and customized chocolate solutions.
Business of Lotus Chocolate
- Cocoa Products Manufacturing: Lotus Chocolate produces and sells cocoa powder, cocoa butter, and cocoa mass to businesses such as bakeries, ice cream manufacturers, and foodservice companies.
- Chocolate and Confectionery Sales: The company offers a range of chocolates and confectionery products for retail and wholesale markets, catering to consumer demand for high-quality chocolate items.
- Customized Solutions: The company provides tailored chocolate and cocoa-based solutions for industrial clients, meeting specific product requirements.
- Exports: Lotus earns revenue through international sales of its cocoa and chocolate products, tapping into global markets.
- Private Label Manufacturing: The company manufactures chocolate products under private labels for other brands, which diversifies its revenue streams.
Lotus Chocolate Fundamental Analysis
| Stock Name | Lotus Chocolate Company Ltd. |
|---|---|
| Market Cap | ₹ 1702Cr. |
| 52W High | ₹ 2609 |
| 52W Low | ₹ 301 |
| Stock P/E (TTM) | 137 |
| Book Value | ₹42.5 |
| Dividend Yield | 0 % |
| ROCE | 1.41 % |
| ROE | – |
| Face Value | ₹ 10 |
| Share holder | Mar 2023 | Mar 2024 | Sept 2024 |
|---|---|---|---|
| Promoters | 72.07% | 72.07% | 72.07% |
| FIIs | 0.01% | 0.01% | 0.09% |
| DIIs | 0.01% | 0.01% | 0.01% |
| Government | 0.01% | 0.01% | 0.01% |
| Public | 27.92% | 27.91% | 27.82% |
| No. of Shareholders | 15,126 | 12,538 | 23,161 |
Pros of Investing in Lotus Chocolate
- Strategic Acquisition by Reliance: In May 2023, Reliance Consumer Products Limited (RCPL), a subsidiary of Reliance Retail Ventures Limited, completed the acquisition of a 51% controlling stake in Lotus Chocolate for ₹74 crore. Reliance’s history of rapid growth and market expansion could accelerate Lotus Chocolate’s growth trajectory.
- Potential for Market Expansion: Backed by Reliance, Lotus can potentially enter untapped markets and benefit from Reliance’s strong retail channels such as Reliance Retail and JioMart.
- Growing Demand for Chocolate: With rising consumer preferences for premium chocolates in India, Lotus is well-positioned to use the growing market of chocolate and cocoa-based confectionary.
- Significant Revenue Growth: In the financial year 2023-24, the company reported a significant increase in revenue to ₹200.03 crore from ₹62.72 crore in the previous year, indicating strong business expansion.
- Improved Profitability: The net profit for the financial year 2023-24 rose to ₹5.06 crore from a net loss in the previous year, reflects the company’s enhanced operational efficiency.
Cons of Investing in Lotus Chocolate
- Small-Cap Stock Volatility: Despite recent growth, Lotus Chocolate is still a small-cap company with a market cap of ₹1,702 crore, making its stock highly volatile.
- High Valuation Metrics: The stock’s Price-to-Earnings (P/E) ratio of 158 indicates that it may be overvalued in comparison to its industry peers.
- Intense Industry Competition: The chocolate and confectionery market is highly competitive, with established players such as Mondelez and Nestlé, which can create challenges for Lotus Chocolate in expanding its market share.
| Years | Target Price |
|---|---|
| Lotus Chocolate Share Price Target 2025 | ₹1800 to ₹2000 |
| Lotus Chocolate Share Price Target 2026 | ₹2310 to ₹2610 |
| Lotus Chocolate Share Price Target 2027 | ₹2850 to ₹2980 |
| Lotus Chocolate Share Price Target 2028 | ₹3300 to ₹3550 |
| Lotus Chocolate Share Price Target 2029 | ₹4000 to ₹4200 |
| Lotus Chocolate Share Price Target 2030 | ₹4500 to ₹4920 |
| Lotus Chocolate Share Price Target 2035 | ₹10000 to ₹12000 |
| Lotus Chocolate Share Price Target 2040 | ₹25000 to ₹28000 |
| Lotus Chocolate Share Price Target 2050 | ₹90000 to ₹95500 |
Conclusion
Lotus Chocolate Company has delivered impressive returns over the last year and has strong growth potential, especially with Reliance Industries’ 51% stake. Reliance’s support can assist the company in expanding its reach, improving operations, and entering new markets. The rising demand for premium chocolates in India contributes to the company’s growth prospects. Lotus Chocolate, a small-cap stock, is highly volatile and faces stiff competition from major brands such as Nestlé and Mondelez.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
Also Read: J&K Bank Share Price Target 2025 to 2050