PATANJALI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | PATANJALI | Market Cap | 49,993 Cr. | Current Price | 459 ₹ | High / Low | 654 ₹ |
| Stock P/E | 29.8 | Book Value | 111 ₹ | Dividend Yield | 0.76 % | ROCE | 15.6 % |
| ROE | 12.1 % | Face Value | 2.00 ₹ | DMA 50 | 484 ₹ | DMA 200 | 534 ₹ |
| Chg in FII Hold | -1.62 % | Chg in DII Hold | -0.98 % | PAT Qtr | 624 Cr. | PAT Prev Qtr | 517 Cr. |
| RSI | 41.4 | MACD | -5.54 | Volume | 18,95,822 | Avg Vol 1Wk | 22,12,866 |
| Low price | 451 ₹ | High price | 654 ₹ | PEG Ratio | 1.71 | Debt to equity | 0.24 |
| 52w Index | 4.35 % | Qtr Profit Var | 68.2 % | EPS | 15.2 ₹ | Industry PE | 22.0 |
📊 PATANJALI shows moderate fundamentals with ROE at 12.1% and ROCE at 15.6%, reflecting decent capital efficiency. EPS of 15.2 ₹ supports profitability, and the PEG ratio of 1.71 suggests growth is reasonably priced. The P/E ratio of 29.8 is higher than the industry average of 22.0, indicating premium valuation. Dividend yield is modest at 0.76%. Debt-to-equity ratio of 0.24 is manageable, but technical indicators (RSI 41.4, MACD -5.54) show weak momentum. PAT improved significantly (517 Cr. → 624 Cr.), highlighting earnings growth, though institutional investors reduced holdings.
💰 Ideal Entry Price Zone: 440 ₹ – 460 ₹, near support levels and below DMA 50 (484 ₹), offering margin of safety.
📈 Long-Term Holding Guidance: PATANJALI is suitable for medium-to-long-term holding (3–5 years) given improving profitability and moderate efficiency. Investors should accumulate on dips but consider partial profit booking near 600–620 ₹ if valuations stretch without sustained earnings growth.
✅ Positive
- ROCE (15.6%) and ROE (12.1%) show decent capital efficiency.
- PEG ratio (1.71) suggests growth is fairly priced.
- EPS of 15.2 ₹ reflects profitability.
- PAT growth of 68.2% quarter-on-quarter.
⚠️ Limitation
- P/E (29.8) higher than industry average (22.0), indicating premium valuation.
- Dividend yield modest at 0.76%.
- Technical weakness with RSI at 41.4 and MACD negative (-5.54).
- Price trading below DMA 50 and DMA 200, showing medium-term weakness.
📉 Company Negative News
- FII holdings decreased (-1.62%) and DII holdings declined (-0.98%).
- Weak technical momentum despite earnings growth.
📈 Company Positive News
- PAT improved from 517 Cr. to 624 Cr. (+68.2%).
- EPS of 15.2 ₹ supports profitability.
🏭 Industry
- Industry P/E at 22.0, lower than PATANJALI’s 29.8, highlighting premium pricing.
- FMCG sector benefits from steady demand and brand-driven growth, though competition is intense.
🔎 Conclusion
PATANJALI shows improving earnings and moderate efficiency but trades at a premium valuation with weak technical momentum. Entry near 440–460 ₹ offers margin of safety. Suitable for medium-to-long-term investors, with partial profit booking near 600–620 ₹ if valuations stretch without sustained earnings growth.