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Check Before You Invest : Patanjali Foods Ltd

BSE: 500368 NSE: PATANJALI ISIN: INE619A01035
  |   Sector:  FMCG   |   Industry:  Edible Oil

Snapshot

Q.1 Which industry/sub-sector does Patanjali Foods Ltd belong to?
Patanjali Foods Ltd belongs to the FMCG sector, operating specifically within the Edible Oil segment.
Q.2 Is Patanjali Foods Ltd a good quality company?
Patanjali Foods Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Patanjali Foods Ltd undervalued or overvalued?
Patanjali Foods Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Patanjali Foods Ltd a good buy now?
Patanjali Foods Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Patanjali Foods Ltd?
Patanjali Foods Ltd revenue growth is 7.7% for FY-2025 , which is below its 5 year CAGR of 21.1% , indicating slower growth.
Q.2 Gross Profit margin of Patanjali Foods Ltd?
Patanjali Foods Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.8% for FY-2025 , which is above its 5 year median of 4.3% , indicating increasing margins.
Q.3 Operating Profit Margin of Patanjali Foods Ltd?
Patanjali Foods Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.22% for FY-2025 , which is in line with its 5 year median of 5.22% indicating stable margins.
Q.4 Net Profit Margin of Patanjali Foods Ltd?
Patanjali Foods Ltd Net Profit Margin is 3.81% for FY-2025 , is above with its 5 year median of 3.33%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 5.8 4.3
Operating Profit Margin 5.22 5.22
Net Profit Margin 3.81 3.33
Q.5 Return on Asset of Patanjali Foods Ltd?
Patanjali Foods Ltd Return on Asset is 9.1%, which is above its 5 year historical median of 7.95%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Patanjali Foods Ltd?
Patanjali Foods Ltd Return on equity is 12.13% for FY-2025 , which is in line with its historical median of 12.13%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Patanjali Foods Ltd?
Patanjali Foods Ltd Return on capital employed is 15.56% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Patanjali Foods Ltd?
Patanjali Foods Ltd Cash conversion cycle is 46 days, above its historical median of 41 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 2.39 2.39
ROE 12.13 12.13
ROCE 15.56 13.45
Cash Conversion Cycle 46 days 41 days
Q.9 Debt to Equity ratio of Patanjali Foods Ltd?
Patanjali Foods Ltd Debt-to-Equity ratio is 0.07 , which is above with the industry average of 0.05 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Patanjali Foods Ltd?
Patanjali Foods Ltd Debt to cash flow from operations is 3.95 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Patanjali Foods Ltd?
Promoters hold 68.26% of the Patanjali Foods Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Patanjali Foods Ltd vs industry peers?
Patanjali Foods Ltd revenue CAGR is 21.09% , compared to the industry median CAGR of 4.09% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 34,157 4,826.5
Gross Profit 1,981.1 666.6
Operating Profit 1,764 653.5
Net Profit 1,301 403
Operating Efficiency
Current Level Industry Median
Asset Turnover 2.39 0.88
ROE 12.13 6.07
ROCE 15.56 6.73
Cash Conversion Cycle (days) 46.41 3

Valuation & price assessment

Q.1 Stock return of Patanjali Foods Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 47% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 47% 16.3% 13.2% -28.8%
Q.3 Valuation ratios of Patanjali Foods Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 30.7 1.99 37.53
Price to Book 3.98 4.37 2.30
Price to Sales 1.3 1.11 0.64
EV to EBITDA 25.98 27.01 16.35

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