PATANJALI - Investment Analysis

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

Investment Rating: 3.6

📊 Fundamental & Valuation Analysis

Metric Value Interpretation

Market Cap ₹68,333 Cr Mid-large cap

Current Price ₹1,887 Near resistance zone

Book Value ₹314 P/B ~6 (expensive)

Stock P/E 52.5 Overvalued vs industry PE of 30.2

PEG Ratio 1.53

1

Fairly valued for growth

ROE 12.1%

2

Moderate efficiency

ROCE 15.5%

2

Healthy capital efficiency

Dividend Yield 0.53%

3

Low income generation

Debt to Equity 0.07

3

Very low debt, financially sound

📈 Price Trends & Technicals

52W High/Low: ₹2,030 / ₹1,570 — currently near upper range

DMA 50 / 200: ₹1,769 / ₹1,755 — trading above both, bullish signal

RSI: 65.9 — approaching overbought zone

MACD: 59.7 — bullish crossover

Volume: Below 1-week average — waning momentum

🎯 Entry Price Zone (Valuation-Based)

Given the high P/E and premium valuation, ideal entry would be in the ₹1,600–₹1,720 range, closer to the 200 DMA and support zone. This offers better margin of safety and aligns with long-term accumulation.

🧭 Holding or Exit Strategy

If you already hold Patanjali

Holding Period: Minimum 3–5 years to benefit from FMCG sector growth and brand expansion.

Exit Strategy

Partial profit booking near ₹2,000–₹2,050 (resistance zone)

Re-enter on dips near ₹1,600–₹1,720

Exit fully if ROE/ROCE stagnates or PEG rises above 2.0

✅ Long-Term Investment Verdict

Pros

Strong brand and FMCG positioning

Low debt, improving margins

PEG ratio supports growth valuation

Cons

High P/E and P/B ratios

Low dividend yield

Promoter holding slightly reduced

Conclusion: Patanjali Foods is a moderate long-term candidate with strong fundamentals but expensive valuation. Accumulate on dips for better returns.

Would you like a comparison with its FMCG peers like Tata Consumer or Nestlé India?

1

www.indmoney.com

2

www.screener.in

3

stockanalysis.com

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