Shares of LT Foods surged nearly 5% in early trade on May 19, as investors piled into the stock, fueled by the company’s strong performance in the quarter that ended March.

In the fourth quarter, the parent company of the Daawat rice brand showed strong financial performance, with three key metrics of profit, revenue and profitability recording substantial growth.

The company’s net profit jumped 79.3% to Rs 128.2 crore, compared to Rs 72 crore a year earlier. This significant growth was triggered by increasing market share and volume.

Also, the company’s revenue rose 19.3% year-on-year to Rs 1,821.4 crore, driven by accelerated brand investments across all three business segments – Basmati and other speciality rice, organic and convenience, and wellness.

The operating performance also improved as the EBITDA margin expanded 80 basis points to 10.8% in January-March from 10% a year earlier.

Shares of LT Foods were trading at Rs 118.45 on the National Stock Exchange at 11:42 am, up 2.2%.

Volume was also high, with about 37 lakh shares changing hands on exchanges, compared with a one-month daily average of 19 lakh shares.

The company also plans to solidify its leadership in key markets and further expand its current market share, with a five-year revenue CAGR target of 10-12%. On top of that, the company plans to improve EBITDA margins by 140-150 basis points over the next five years.