LT Foods Shares Drop 10% Amid Imposed US Countervailing Duty on Ecopure Exports

Shares of LT Foods (

) fell sharply by 10% to a low of ₹389.25 after the company disclosed that its subsidiary, Ecopure Specialities Ltd, has been slapped with a 340% countervailing duty (CVD) by the US Department of Commerce for organic soybean meal exports between January and December 2023. The duty, applicable to sales worth ₹50 crore, has triggered investor concerns about potential financial implications. In a regulatory filing, LT Foods expressed confidence in Ecopure’s legal position and said it plans to challenge the CVD through an administrative review. The company also stated that it does not expect any material impact on future earnings or cash flow. The development comes as a blow to the group’s export business, particularly in the US—a key market—and raises questions about trade dynamics amid increasing scrutiny of Indian agricultural exports. This raises doubts over near term exports, sales and possible earnings downgrades as well. We would have to watch this counter for further developments to guage the extent of damage.