admin
Patanjali Foods Ltd. witnessed a sharp 3.24 % rise in share price to ₹1,801.10 on Wednesday, July 16, 2025, on strong trading volume. The mid-cap FMCG firm became one of the top gainers on the Nifty Midcap 150 index today, reflecting growing investor optimism amid corporate action headlines and upbeat financial indicators.
What Drove the Rally?
- High trading volume: Volume spiked significantly during today’s session, signaling renewed investor interest and momentum.
- Bonus issue anticipation: Patanjali Foods’ board is scheduled to meet on July 17, 2025, to consider issuing bonus shares—the company’s maiden bonus issue. This announcement, made via BSE/NSE filings, has energized market sentiment.
- FMCG revival: A broader recovery in FMCG sentiment and strong positional metrics further supported the stock’s rise.
- Technical breakout: Buy signals emerged as both 50‑day and 200‑day EMA crossover patterns triggered bullish technical setups around ₹1,701–1,739 levels.
A Two-Day Surge: 8% Gain
Patanjali Foods has rallied an impressive ~8 % over the past two trading sessions. The stock hit a two-day high of ₹1,813.60 on the BSE after the bonus-issued board meeting announcement.
| Date | % Change | Price Approx. |
|---|---|---|
| Tuesday | +4.2 % | ₹1,781 |
| Wednesday | +3.24 % | ₹1,801 |
This two-day rally reflects intensified buying as investors anticipate favorable outcomes from tomorrow’s meeting.
Bonus Issue: A First Ever?
If approved, this will mark Patanjali Foods’ first-ever bonus issue, rewarding existing shareholders with additional free shares—boosting investor goodwill though not affecting overall equity value. The proposal’s rollout path:
- Board meeting: Scheduled for July 17, 2025
- Shareholder approval: Subject to upcoming AGM consensus
- Bonus timing & ratio: Pending final decision
Shareholding & Analyst Outlook
- Promoter holding: 69.5 % post various corporate acquisitions
- Public float: 30.5 %, widely held by mutual funds and FIIs
- Analyst consensus: Four analysts hold a “Buy” rating, with an average 12‑month target of ₹2,116—implying 17 % upside from current levels.
Robust Financial Profile
Despite recent stock action, what underpins the firm’s performance is a strong financial foundation:
- FY25 revenue: ₹34,157 cr, up sharply from ₹12,729 cr in FY19
- FY25 net profit: ₹1,301 cr, swinging from losses of ₹88 cr in FY19
- Q4 FY25 vs Q3: March quarter net profit: ₹358 cr; revenue: ₹9,692 cr
- Valuation metrics: Adjusted P/E 46x, P/B 5.8x; debt‑to‑equity 0.07x—highlighting low leverage
Technical Signals: Bullish Outlook Ahead
Technical chart patterns support a bullish stance:
- 50‑day EMA crossover on July 15 at ₹1,701.63
- 200‑day EMA crossover around ₹1,739.58
- Historically, prior crossovers delivered 9 %–15 % gains over 30 days
Together, these technical triggers bolster the bullish narrative fueled by bonus‑share anticipation.
Risk Factors to Watch
- Bonus outcome uncertainty: Final approvals still pending—failure could lead to sharp reversal.
- FMCG headwinds: Inflation or demand softness may impact margins.
- Valuation caution: At 46 × earnings and 5.8 × book value, current multiples leave limited margin for error.
- Market volatility: July historically sees weakness—average returns in July have been negative (–1.6 %) in 10 of 17 years.
What Investors Should Do Now
- Trades/short‑term: Momentum strategies may work until July 17 as pre‑meeting enthusiasm holds.
- Medium‑term: Those who factor in FY26 growth and momentum may add on dips.
- Long‑term: Wait till bonus decision and Q1 FY26 results before committing, given valuation and seasonal risks.
Bottom Line
Patanjali Foods’ 3.24 % surge today—propelled by high-volume activity and bonus-issue anticipation—emphasizes investor belief in the company’s future. Coupled with solid earnings, robust financials, bullish technicals, and analyst confidence, the stock looks well-placed for near-term gains. However, investors should stay alert for the board’s decision and broader FMCG trends.
Also Read: ITC Hotels Q1 FY26: Profit Soars 54%, Stock Surges 5%.
