⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
PATANJALI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | PATANJALI | Market Cap | 53,197 Cr. | Current Price | 489 ₹ | High / Low | 671 ₹ |
| Stock P/E | 31.7 | Book Value | 111 ₹ | Dividend Yield | 0.68 % | ROCE | 15.6 % |
| ROE | 12.1 % | Face Value | 2.00 ₹ | DMA 50 | 517 ₹ | DMA 200 | 554 ₹ |
| Chg in FII Hold | -1.42 % | Chg in DII Hold | 1.19 % | PAT Qtr | 624 Cr. | PAT Prev Qtr | 517 Cr. |
| RSI | 38.0 | MACD | -9.75 | Volume | 8,51,453 | Avg Vol 1Wk | 17,43,098 |
| Low price | 476 ₹ | High price | 671 ₹ | PEG Ratio | 1.82 | Debt to equity | 0.24 |
| 52w Index | 6.76 % | Qtr Profit Var | 68.2 % | EPS | 15.2 ₹ | Industry PE | 22.0 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT rose to ₹624 Cr. from ₹517 Cr. (+68.2%). ROE (12.1%) and ROCE (15.6%) are moderate, showing decent efficiency but not industry-leading.
- Debt & Liquidity: Debt-to-equity at 0.24 indicates manageable leverage, ensuring financial stability.
- Valuation: P/E of 31.7 is higher than industry average (22.0), suggesting mild overvaluation. P/B ~4.4 indicates premium pricing relative to book value. PEG ratio (1.82) reflects moderate growth expectations.
- Technical Indicators: RSI at 38.0 indicates oversold conditions; MACD at -9.75 signals bearish trend. Current price ₹489 is below DMA 50 (₹517) and DMA 200 (₹554), showing weakness.
🏢 Business Model & Competitive Advantage
- Patanjali Foods operates in FMCG and edible oils, with strong brand recognition and diversified product portfolio.
- Competitive advantage lies in brand trust, distribution reach, and alignment with health-conscious consumer trends.
💡 Entry Zone Recommendation
- Entry zone: ₹470–₹500, near support levels.
- Attractive for long-term investors given strong brand and moderate fundamentals, but caution advised due to valuation premium.
📈 Long-Term Holding Guidance
- Suitable for long-term holding due to brand strength and sector demand.
- Upside potential tied to FMCG growth, edible oil demand, and rural consumption trends.
✅ Positive
- Quarterly PAT growth (+68.2%).
- Moderate ROE (12.1%) and ROCE (15.6%).
- Dividend yield of 0.68% adds investor appeal.
- DII holdings increased (+1.19%).
⚠️ Limitation
- P/E (31.7) above industry average (22.0).
- P/B ratio (~4.4) indicates premium valuation.
- Stock trading below DMA 50 and DMA 200, showing bearish trend.
📉 Company Negative News
- Bearish technical indicators (MACD negative, RSI oversold).
- FII holdings reduced (-1.42%).
📈 Company Positive News
- Quarterly PAT increased from ₹517 Cr. to ₹624 Cr.
- DII holdings increased (+1.19%).
- Strong brand presence in FMCG and edible oils.
🏭 Industry
- FMCG industry P/E at 22.0, lower than Patanjali’s valuation.
- Sector growth driven by rising consumer demand, health-focused products, and rural market expansion.
🔎 Conclusion
- Patanjali Foods shows strong brand presence and improving profits but trades at a valuation premium.
- Entry near ₹470–₹500 is attractive for long-term investors; recommended as a cautious holding with potential upside tied to FMCG growth.