Prefer KRBL and LT Foods in food processing space: Deepak Shenoy

In a chat with ET Now, Deepak Shenoy, Founder, Capital Mind, talks about the impact stocks of domestic-listed rice companies will see after the lift of ban on imported rice by Iran.

ET Now: Can I ask you if you are buying into stocks of rice companies?

Deepak Shenoy: I would first like to disclose that we have already bought into stocks of some of the rice companies. We are long on both LT Foods and KRBL and we had expected this to happen at some point. Typically, the lift of ban happens in October or in November. The ban is imposed in Iran to protect local producers. But this time, it was a little bit delayed.

ET Now: Are you saying there is a pattern to this?

Deepak Shenoy: Yes. We have seen this last year as well. October is the time when harvesting happens in Iran. It is at this time when the ban on import of rice is lifted. India is one of the biggest sources of Basmati rice for Iran.