PATANJALI - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.9

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📊 Fundamental Analysis Report

• Stock Code: PATANJALI
• Market Cap: ₹65,520 Cr
• Current Price: ₹603
• 52W High/Low: ₹671 / ₹523
• EPS: ₹11.2
• Stock P/E: 53.8 vs Industry P/E: 25.8 ❗
• PEG Ratio: 3.09 ❗ (Overvalued vs Growth)
• Book Value: ₹105 | P/B Ratio: ~5.74 ❗
• ROE: 12.1% | ROCE: 15.6% 🟡
• Debt to Equity: 0.07 🟢 (Low Leverage)
• Dividend Yield: 0.55% 💰
• Quarterly PAT: ₹180 Cr (↓31.4%)
• RSI: 55.3 | MACD: 1.36 📈

✅ Positive

• Low debt-to-equity ratio enhances financial flexibility and reduces risk.
• Consistent dividend payout adds value for income-focused investors.
• Price trading above DMA 50 and 200 indicates technical strength.
• Strong brand presence in FMCG and wellness segments with diversified product portfolio.

⚠️ Limitation

• High P/E and PEG ratios suggest overvaluation relative to earnings and growth.
• PAT dropped 31.4% QoQ, raising concerns about earnings volatility.
• ROE and ROCE are moderate, not industry-leading.
• FII holding declined by 0.75%, indicating cautious foreign sentiment.

📉 Company Negative News

• Quarterly profit fell from ₹359 Cr to ₹180 Cr, indicating margin pressure or cost escalation.

📈 Company Positive News

• Stock has delivered a 53.8% return over the past year, outperforming many FMCG peers.
• Positive DII sentiment (+0.63%) reflects domestic institutional confidence.
• Expansion into new product categories and retail channels continues to drive growth.

🏦 Industry

• PATANJALI operates in the FMCG and wellness sector, benefiting from rising health-conscious consumer trends.
• Industry P/E of 25.8 is significantly lower, suggesting PATANJALI trades at a premium.
• Sector growth supported by rural penetration, Ayurveda adoption, and brand loyalty.

🧭 Conclusion

• Entry Zone: ₹560–₹580 (near support and RSI neutral)
• Long-Term View: Strong brand and low debt make PATANJALI a viable long-term hold, though valuation and earnings volatility warrant cautious accumulation.