Following a 7% stake sale, the promoter stake has been reduced from 80.82% in Patanjali to 73.82%. Accordingly, the company has now become compliant with minimum public shareholding requirements of 75%.Dr Ravi Singh of Share India warns that the stock price is expected to witness some correction soon. On the technical setup, the counter is in a downtrend and may touch the level of Rs 1,100.
Chartists say that Patanjali stock is currently at a resistance area which can lead to some profit booking in an ongoing mild uptrend.
“Although from a fundamental standpoint, the stock doesn’t look very attractive owing to high valuations, in the near term one can still look to buy this counter above key levels to play this uptrend. If the stock price closes above Rs 1,250 level, that would imply that the near-term resistance is taken out,” said Rahul K Ghose of Hedged.
In Q4, the company reported a 18.2% YoY growth in net profit to Rs 349.4 crore and a 18.2% rise in revenue to Rs 7,872.9 crore, driven by its food and FMCG segment. The company has a return on equity (ROE) of 11% and a return on capital employed (ROCE) of 13.4%. The company has a return on assets (ROA) of 7.2% and a manageable debt-to-equity ratio of 0.2.
“We expect the company to post good results and improve margins on the back of declining palm oil prices in Q1FY24. It has chalked out an aggressive growth plan to reach Rs 5,000 crore operational profit and over Rs 50,000 crore turnover in the next five years, banking on a huge opportunity that it sees in FMCG business and oil palm plantations,” said Mohit Nigam, Head – PMS, Hem Securities.
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