Why Baba Ramdev's Patanjali Shares Nosedived 10% Today? Key Reasons Explained Amid Bloodbath In Market

Baba Ramdev's company, Patanjali Foods, witnessed a sharp decline in its stock price today, plunging nearly 10% as the broader stock market faced a heavy sell-off.

The Sensex today tumbled 1.72% or 1,286 points to trade at 73,325, while the Nifty 50 also declined 1.67% or 375 points to 22,169 in the bear market.

Patanjali Foods Share Price Update

On Friday, February 28, Patanjali Foods' stock price took a major hit, falling by approximately 10% in early trade. The stock opened at Rs. 1,806 and continued to slide as the day progressed. Currently the Patanjali stocks are 6.71% down, trading at Rs.1651 apiece at the time of writing. This steep decline comes amid heightened market volatility, with investors pulling out funds due to bearish trends across major indices.

Reasons Behind Patanjali Share Price Decline
The Indian stock market is experiencing a significant downturn, with both Sensex and Nifty plunging over 1.6% today, impacting various stocks, including Patanjali Foods. Patanjali Foods Ltd. recently began trading with Futures & Options (F&O) contracts at the start of the March series. While most of the new F&O stocks have seen corrections of 40% to 60% from their peak, the FMCG sector has been struggling, as multiple companies undergo profit-booking following recent rallies.

Should You Buy or Hold Patanjali Shares?

Analysts are giving a BUY recommendation for Patanjali Foods despite recent stock volatility. According to Systematix Institutional Equities, the company's Q3 FY25 revenue was in line with expectations, but profits were stronger than anticipated. Revenue grew 15% year-on-year, mainly due to higher edible oil prices (though sales volume dropped), while food sales declined 18% YoY. They predict steady revenue growth of 9% per year through FY27 and have set a new target price of Rs. 2,115.

Antique Stock Broking also maintains a BUY rating for Patanjali shares, slightly adjusting earnings estimates and setting a revised target price of Rs. 2,045 (down from Rs. 2,100). They value the stock at 30 times its expected earnings in FY27, which is still lower than FMCG industry peers. Overall, analysts believe Patanjali shares has strong long-term potential despite short-term challenges.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.