PATANJALI - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

🪴 Fundamental Stock Analysis: Patanjali Foods Ltd (PATANJALI) Rating: 3.8

🧾 Core Financial Health

Profitability & Returns

EPS at ₹35.9 is modest and steady, though ROE and ROCE are undisclosed, making full return metrics unclear.

PAT showed slight softness (₹359 Cr vs. ₹371 Cr), but the drop appears marginal — likely reflecting seasonal variation or margin pressures.

Capital Structure

Debt-to-Equity at just 0.07 — outstanding financial hygiene. Minimal debt enhances flexibility and shields against interest rate swings.

Dividend Yield at 0.42% — modest income generation for shareholders; management likely prioritizing reinvestment.

💰 Valuation & Market Action

Metric Value Insight

P/E Ratio 52.5 High — significantly above industry average (30.2)

P/B Ratio ~6.01 Indicates market is pricing in brand strength and growth

PEG Ratio Not available Cannot assess value-growth tradeoff

RSI & MACD RSI 65.9, MACD 59.7 Strong momentum, nearing overbought zone

Price vs DMA ₹1,887 vs DMA 50/200: ₹1,769 / ₹1,755 Trading above key averages, short-term strength

Volume Watch: Current volumes are below average → hints of waning interest or quiet consolidation.

Institutional Behavior: DII interest is rising (+2.51%), while FII has trimmed (-0.43%) — cautious optimism from domestic funds.

🧠 Business Model & Strategic Edge

Business Focus: Patanjali Foods operates across edible oils, packaged foods, and wellness-oriented FMCG products. Its hybrid consumer and commodity model is rare in the sector.

Moat Indicators

Strong brand equity and expansive distribution give it household-level reach.

Synergies from the Patanjali Ayurved umbrella enhance recall and cross-selling.

Asset-light FMCG approach and supply chain efficiency support margin potential.

📌 Investment Strategy

Entry Zone Recommendation: Ideal accumulation range: ₹1,740–₹1,800. This band sits near its 50-DMA and provides technical support while reducing valuation risk.

Long-Term Outlook

Solid for growth-driven investors focused on India’s consumption story.

Key risks include margin volatility, high valuation multiples, and operational integration.

ROE/ROCE disclosures and further clarity on PAT drivers could bolster conviction.

Want me to set up a comparison against FMCG peers like Marico, Dabur, or HUL? I can chart valuations, margins, and earnings trends for sharper context. Ready when you are.

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