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Fundamentals for Patanjali Foods Limited
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Fundamentals for Patanjali Foods Limited
Business Operations:
Sector: Consumer DefensiveIndustry: Packaged Foods
Patanjali Foods Limited engages in the processing of oil seeds and refining crude oil for edible use in India. The company operates through Edible Oils, Food & FMCG, and Wind Power Generation segments. The company offers crude and refined oil; vanaspati, bakery fats, seed extractions, and other related products; mustard, soyabean, sunflower, rice bran, sesame, groundnut, and roasted/virgin coconut oil; palm, castor, and soya derivatives, as well as glycerine; and soya value-added products, such as soya flakes, lecithin, textured vegetable protein, grits, flour, and soybean meal. It also provides food products comprising dry fruits, ghee, honey, flour, sugar, salt, juices, beverages/drinks, sharbat, roasted diet, herbal products, rice, pulses, spices, and namkeen products; biscuits, breakfast cereals, candy, jam, noodles, pickles, sauces, sweets, and tea products; soya chunks and granules, maxs millet, maxx millet oats, maxx nuts; and nutraceutical products. In addition, the company generates electricity from windmills; and trading of various products. It sells its products under the Patanjali, Nutrela, Mahakosh, Sunrich, and Ruchi Gold brands. The company was formerly known as Ruchi Soya Industries Limited and changed its name to Patanjali Foods Limited in June 2022. Patanjali Foods Limited was incorporated in 1986 and is based in Indore, India.
Revenue projections:
Investors may react cautiously to news that PATANJALI's revenues are forecasted to be lower than last year's. Such declines are likely to have a negative effect on the company's bottom line, which can lead to concerns about profitability and hinder investor confidence in the company's future performance.
Financial Ratios:
| currentRatio | 2.101000 |
|---|---|
| forwardPE | 30.528202 |
| debtToEquity | 23.903000 |
| earningsGrowth | 0.671000 |
| revenueGrowth | 0.202000 |
| grossMargins | 0.151340 |
| operatingMargins | 0.049920 |
| trailingEps | 13.150000 |
| forwardEps | 16.755000 |
PATANJALI's current ratio of 2.101 shows that the company has ample resources to service its short-term debt. This indicates a solid financial position, as PATANJALI can rely on its cash reserves and current assets to cover its immediate liabilities without strain.
PATANJALI's low Debt-to-Equity ratio means the company is not over-leveraged, highlighting its conservative use of debt. This suggests reduced financial risk and a stable balance sheet, making PATANJALI a financially resilient company with lower exposure to debt-related pressures.
With positive growth in both earnings and revenue, Patanjali Foods Limited is expected to grow its business. These indicators highlight a strong financial outlook, with the company on track for continued expansion and increasing profitability.
PATANJALI's forward EPS surpassing its trailing EPS signals projected growth in profitability, with the company expected to perform better this year. This forecast suggests that PATANJALI's earnings will improve compared to the previous financial year, highlighting optimism in its financial outlook.
Price projections:
The current price of Patanjali Foods Limited aligns with projections, showing no clear risks or opportunities. This lack of volatility suggests a stable environment for investors, who may wish to hold off on major adjustments until market conditions change.
Recommendation changes over time:
PATANJALI has received a favorable buy bias from analysts recently, positioning it as a solid investment opportunity. This sentiment may attract more investors, who view PATANJALI as a stable option to park their money and potentially benefit from the company's continued growth and profitability.
DISCLAIMER: We provide information and our musings based on events, but nothing on this site can be considered professional advice of any kind.
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