Patanjali Foods Stock Hit 52-Week High, After Presenting 4 Fresh IPOs In Next 5 Yrs

The share price of Patanjali Foods Ltd. hit a fresh 52-week high-level today, on September 21. Patanjali group recently announced 5-years plan for their business, along with announcing 4 fresh IPOs in the next 5 years. Investors have reacted positively to that. Brokerage firm ICICI Direct has given a stock a buy rating with a target price of Rs. 1750/share, for a 25% upside in 1 year.

Patanjali Foods - NSE performance

The current market price of Patanjali Foods closed at Rs. 1,467.25/share on NSE, up by 5%. In the last 5 days, its share price up by 7.89% on NSE, in the last 1 month, its share price has surged by 34.35%, and in the past 6 months it has gained 41.18%. In the last 5 years its share gained sharply by 41.07%. It is a large cap stock with a market capitalization of Rs. 53,086 crore.

The 52-week high level of this stock is Rs. 1,467.25, and the 52-week low level of this stock is Rs. 1,021.

Market capitalization	Current market price	6 Months performance	1 Month performance
Rs. 53,086 crore	Rs. 1,467	41.18%	34.35%

Financial results

According to data available with NSE, in Q1 FY23, the company's total income stood at Rs. 7,37,007.59 lakh, as against Rs. 6,67,619.69 lakh in the previous quarter. The company's profit before tax or PBT was reported at Rs. 33,247.30 lakh in Q1 FY23, as against Rs. 29,569.13 lakh in Q4 FY22. The company's net profit was reported at Rs. 24,125.89 lakh in Q1 FY23, as against Rs. 23,443.13 lakh in Q4 FY22.

ICICI Direct says

Patanjali Foods has 3.9 million tonnes (MT) of oilseed crushing & refining capacity with current utilisation of 40%. The company would be able to increase capacity utilisation by leveraging its existing & Patanjali brand to drive volumes. Acquired foods business of PAL commands 16% operating margins with high sales contribution of ghee, juices, atta and honey. With consolidation of foods business, overall margins of the company to see an uptick. Backward integration in palm plantation is likely to reduce its dependency on imported CPO. Moreover, expansion in palm extraction capacities by the company would help in improving margin in the edible oil business in the next 3 to 5 years. The combined distribution network of PAL & PFL has expanded the company's reach to 1 million retail touch points.

Company profile

Patanjali Foods (PFL) is one of the largest edible oil companies in India with oilseed extraction (mustard, soybean & others) & refining capacity of 3.9 million tonnes per annum (MTPA). This includes seven standalone coastal refineries for processing imported crude palm oil (CPO). PFL also has a sizable food business, which includes soya chunks & soya flour under 'Nutrela' brand. It acquired the biscuits, noodles and breakfast cereals business from Patanjali Ayurveda (PAL) in May-June 2021.

Disclaimer

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