✨ At a Glance
From insolvency to IPO stardom, Patanjali Foods (a.k.a. Ruchi Soya 2.0) has done more asanas in five years than a morning yoga class. But now that the edible oil boom has cooled and scrutiny’s heating up, is this still a spiritual multibagger or an oily trap? We dive in.
🌿 Part 1: What Exactly Is Patanjali Foods?
- Legacy: Ruchi Soya was bankrupt in 2019. Patanjali acquired it via NCLT and slapped some ghee on top.
- Rebranded: In 2022, the company officially became Patanjali Foods Ltd, merging Baba-branding with edible oil operations.
- Core Segments:
- Edible Oils (72% of revenue): Palm, Soybean, Sunflower via brands like Nutrela, Mahakosh, Patanjali.
- Food & FMCG (16% of FY25 sales): Nutrela soya chunks, flour, atta, biscuits, rice, etc.
- Oleochemicals & Palm Plantations: Castor, kernel cake, solvent extraction.
Despite the FMCG hype, edible oils still run the show. The fancy atta ads? Just side hustle.
📈 Part 2: Financials – Tumultuous but Toned
FY20 to FY25 Snapshot
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | OPM % | ROCE % |
|---|---|---|---|---|---|
| FY20 | 13,118 | 7,672 | 259.33 | 3% | 6% |
| FY21 | 16,319 | 681 | 23.01 | 6% | 12% |
| FY22 | 24,205 | 806 | 27.25 | 6% | 16% |
| FY23 | 31,525 | 886 | 24.49 | 4% | 14% |
| FY24 | 31,721 | 765 | 21.14 | 4% | 11% |
| FY25 | 34,157 | 1,301 | 35.93 | 6% | 15% |
From insolvency to consistent profits? That’s some Baba-level pranayama.
👀 Part 3: What Changed in 5 Years?
- Margins recovered post COVID commodity price madness
- FMCG push helped diversify beyond volatile edible oil biz
- Debt down from ₹7,916 Cr (FY19) to just ₹788 Cr (FY25)
- EPS normalized (no more weird 259 EPS like FY20)
But make no mistake: 70%+ revenue still comes from edible oil. It’s not Dabur yet.
📃 Part 4: Recent Quarter (Mar 2025) Snapshot
- Revenue: ₹9,692 Cr
- Net Profit: ₹359 Cr
- EPS: ₹9.90
- OPM: 5%
- Sales growth YoY: 12%
- FMCG share: Now 16%, up from 7% in FY22
Quarterly performance looks stable, but growth is plateauing. Time for another Baba launch?
🥇 Part 5: Shareholding Pattern
| Category | Jun ’22 | Mar ’25 |
|---|---|---|
| Promoters | 80.82% | 69.45% |
| FII | 2.35% | 13.42% |
| DII | 2.27% | 8.71% |
| Public | 14.55% | 8.42% |
- Promoters sold down due to SEBI’s MPS rules
- FIIs clearly interested
- Retail losing interest? Public shareholding cut in half
🪖 Part 6: Valuation & Fair Value
- CMP: ₹1,658
- FY25 EPS: ₹35.93
- P/E: ~46x (rich for an edible oil firm)
- Sector median P/E: 30x (Marico trades at 54x, AWL at 27x)
Let’s assume:
- FY26 EPS = ₹40 (growth + FMCG tilt)
- Fair P/E range = 30x (base case) to 40x (bull case)
🎯 FV Range = ₹1,200 to ₹1,600
At current price, it’s fairly priced to slightly overvalued unless FMCG really takes off.
🤯 Part 7: Risks & Red Flags
- MCA investigation & insider trading compliance issues
- Baba-brand dependence is huge
- Volatile palm oil margins
- OPM still just ~5% — FMCG dreams, edible oil reality
🧮 Final Verdict
Patanjali Foods is a legit turnaround story. From bankruptcy to listing to profit. But as of FY25:
- ✔ Profitable
- ✔ Debt-free
- ✔ Growing FMCG mix
- ❌ Still dependent on volatile edible oil
- ❌ Expensive valuation vs peers
It’s not yet Dabur or Nestle, but it’s no longer the Ruchi Soya disaster either. Just don’t expect every launch to turn into an FMCG revolution. Sometimes it’s just ghee in a new bottle.
📝 Written by Prashant | 🗕️ June 18, 2025
Tags: Patanjali Foods, Ruchi Soya, FMCG Stocks, Edible Oil, FY25 Results, Baba Ramdev, Stock Analysis, Fair Value
