⚠ 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: 3.6
| Stock Code | PATANJALI | Market Cap | 53,880 Cr. | Current Price | 496 ₹ | High / Low | 671 ₹ |
| Stock P/E | 37.8 | Book Value | 111 ₹ | Dividend Yield | 0.67 % | ROCE | 15.6 % |
| ROE | 12.1 % | Face Value | 2.00 ₹ | DMA 50 | 541 ₹ | DMA 200 | 571 ₹ |
| Chg in FII Hold | -1.42 % | Chg in DII Hold | 1.19 % | PAT Qtr | 517 Cr. | PAT Prev Qtr | 180 Cr. |
| RSI | 29.2 | MACD | -14.9 | Volume | 8,52,969 | Avg Vol 1Wk | 38,15,856 |
| Low price | 484 ₹ | High price | 671 ₹ | PEG Ratio | 2.17 | Debt to equity | 0.24 |
| 52w Index | 6.29 % | Qtr Profit Var | 67.2 % | EPS | 13.1 ₹ | Industry PE | 23.5 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT surged from ₹180 Cr. to ₹517 Cr. (+67.2%), showing strong growth momentum. EPS at ₹13.1 reflects improving earnings power.
- Return Metrics: ROE at 12.1% and ROCE at 15.6% indicate moderate efficiency, acceptable but not industry-leading.
- Debt Position: Debt-to-equity ratio at 0.24 reflects low leverage, ensuring balance sheet stability.
- Cash Flow: Dividend yield at 0.67% provides modest shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 37.8, higher than industry average of 23.5, indicating premium valuation.
- P/B Ratio: Current Price ₹496 vs. Book Value ₹111 → ~4.5, trading at a steep premium.
- PEG Ratio: 2.17, expensive relative to growth prospects.
- Intrinsic Value: Current valuation appears stretched; intrinsic value likely lower than market price given moderate returns.
🏭 Business Model & Competitive Advantage
- Patanjali Foods operates in FMCG and edible oils, leveraging strong brand recognition and distribution network.
- Competitive advantage lies in brand loyalty, Ayurveda positioning, and diversified product portfolio.
- Profit growth is encouraging, but valuations remain demanding compared to peers.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹480–510, near 52-week low and oversold RSI levels.
- Long-Term Holding: Suitable for investors seeking exposure to FMCG growth; long-term compounding potential exists, but entry should be cautious given high valuation multiples.
Positive
- Strong quarterly PAT growth (+67.2%).
- Low debt-to-equity ratio (0.24), ensuring financial stability.
- DII holdings increased (+1.19%), showing domestic institutional confidence.
- RSI at 29.2 indicates oversold condition, potential rebound.
Limitation
- High P/E ratio (37.8) compared to industry average (23.5).
- P/B ratio at ~4.5 indicates steep premium valuation.
- PEG ratio at 2.17 suggests expensive growth-adjusted valuation.
- Dividend yield modest at 0.67%.
Company Negative News
- FII holdings reduced (-1.42%), showing lower foreign investor confidence.
- MACD negative (-14.9), signaling bearish momentum.
Company Positive News
- Quarterly PAT surged significantly from ₹180 Cr. to ₹517 Cr.
- DII holdings increased (+1.19%), reflecting domestic institutional support.
Industry
- FMCG industry P/E at 23.5, much lower than Patanjali’s 37.8, highlighting premium valuation.
- Sector outlook supported by rising consumer demand and health-focused products.
Conclusion
- Patanjali Foods demonstrates strong profit growth and brand strength but suffers from high valuation multiples.
- Debt levels are low, supporting financial stability, but returns remain moderate compared to valuation.
- Accumulation near ₹480–510 is recommended for cautious investors, with long-term potential tied to FMCG demand and brand-driven growth.
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