Patanjali Foods Shares Rebound 10 Per Cent From Day's Low After Over 20 Per Cent Fall

On Monday morning, Patanjali Foods traded 4 per cent higher at Rs 943.50, as compared to 0.66 per cent decline in the S&P BSE Sensex

Ramdev-backed Patanjali Foods’ shares edged up by about 5 per cent to Rs 948.90, recovering 10 per cent from its low of Rs 865 on the BSE in Monday’s intra-day trade. The shares of the company in the past eight trading days had slipped 21 per cent from a level of Rs 1,206.45 on January 24.

On Monday morning, Patanjali Foods traded 4 per cent higher at Rs 943.50, as compared to 0.66 per cent decline in the S&P BSE Sensex. The average trading volumes on the counter jumped 1.4 times on Monday trading. A combined 363,000 equity shares had changed hands on the BSE and NSE.

Currently, Patanjali Foods traded under the T group on the BSE. In the T2T segment, each trade has to result in delivery and no intra-day netting of positions is allowed.

Recently, Patanjali Foods has underperformed the market. In past one week, the stock was down 11 per cent, as compared to 1.6 per cent rise in the S&P BSE Sensex. In one month, it declined 20 per cent, as against nearly 1 per cent gain in the benchmark index. In the past three months, it slipped 31 per cent, as compared to 1 per cent decline in the Sensex.

The stock had hit a 52-week high of Rs 1,495 on September 22, 2022.

The recent underperformance is partly attributed to government's decision to discontinue import of crude soybean oil under tariff rate quota (TRQ) from April 1 this year.

"Last date for import of crude soybean oil under TRQ has been revised to March 31, 2023. Further, no allocation of TRQs for import of crude soybean oil shall be made for 2023-24," the directorate general of foreign trade (DGFT) said in a public notice in mid-January.

Patnajali Foods (formerly known as Ruchi Soya Industries Limited), a diversified fast-moving consumer goods (FMCG) and fast-moving health goods (FMHG) focused firm with 25 strategically located manufacturing facilities, well recognised brands with pan-Indian presence and allocation of 6.23 lakh hectares of oil palm plantation.

In October-December quarter (Q3FY23), Patanjali Foods clocked 139.73 per cent sequential growth in profit after tax (PAT) at Rs 269.18 crore, on back of healthy operational performance. Earnings before interest, depreciation, tax and amortization (EBIDTA) grew by 97.5 per cent quarter-on-quarter (QoQ) to Rs 406 crore. EBITDA margin improved 270 bps to 5.11 per cent from 2.41 per cent in Q2FY23.

Revenues from operations, however, declined 6.9 per cent QoQ at Rs 7,926 crore. On year-on-year basis, revenue and PAT grew 26.2 per cent and 15 per cent, respectively.

At 1.10 pm on Monday, the shares of Patanjali Foods were trading at Rs 941, up 3.77 per cent on the BSE.