A major upheaval in the stock market; Big blow to Patanjali shareholders after Adani

Patanjali Foods shares fall: Yoguru Ramdev’s Patanjali Foods Limited company share is falling day by day. On the last trading day of last week i.e. February 3, Patanjali Foods shares hit a lower circuit and the market capitalization of the company registered a drop of Rs 7 thousand crores in one week.

Currently, a big upheaval is being seen in the stock market. After the Hindenburg report, Adani Group’s shares fell sharply. It also affected the market as a whole. Several other stocks saw declines due to negative market cues. The stock of Yoguru Ramdev’s Patanjali Foods Limited Company is falling day by day and the investors of Patanjali Foods got a big shock last week. The company’s stock has been falling continuously for the last week and during this time the investors have lost around Rs. 7000 crores so far.

Shares lower circuit last week

On the last trading day of last week i.e. February 3, Patanjali Foods shares hit the lower circuit and the stock fell to Rs 903.35. At the close of business, the share price was Rs 906.80. The market capitalization of the company is Rs 32,825.69 crore. A week ago i.e. on January 27, the share price was at the level of Rs 1102 and the market capitalization was around Rs 40 thousand crores. Thus, in one week the company’s market capitalization recorded a fall of Rs 7 thousand crores.

Increase in Patanjali Foods’ profits

Patanjali Foods Ltd’s net profit rose 15 percent to Rs 269.18 crore in the December quarter. The reason for the increase in net profit is the increase in sales. The company recently informed the stock market that its net profit for the same quarter of 2021-22 was Rs 234.07 crore a year ago. Pantajalit Foods’ total revenue for the quarter ended December 31 increased 26 percent to Rs 7,963.75 crore from Rs 6,301.19 crore in the same period last year.

Analysts’ Opinion

Analysts say Patanjali’s December quarter results are mixed. Margins are under pressure. Margins in the food segment stood at 11 percent while it was estimated at 15-18 percent. The effect of such situation is being seen on the share of Patanjali Foods. Apart from this, promoters’ stake will have to be reduced to comply with SEBI norms. It also has pressure on the stock. Patanjali wanted to bring down the non-promoter and public shareholding to at least 25 percent by December 2022, but could not do so. The company has sought more time from SEBI for this.

Sameer Rastogi, Director, Saksham Wealth Pvt Ltd, says investors need to be cautious about Patanjali Foods. He says, “The stock should be cautious for now as there are corporate governance and transparency issues. Patanjali Foods has lost nearly 25 percent of its market capitalization in a month. I would not consider it a good share in terms of corporate governance.’

At the same time, Nitin Kedia, founder of Kedia Fincorp, says that stocks with high PEs are under pressure. The valuation of Patanjali Foods had risen significantly, so the stock has been hit hard by negative market cues.

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