Patanjali Foods Ltd.
NSE: PATANJALIPatanjali Foods Ltd.: A 30-second snapshot
Patanjali Foods (NSE: PATANJALI) is an FMCG-sector stock trading at ₹449.95, down 25.2% over the past 12 months and 30.65% from its 52-week high, with the price sitting below both its 50-DMA (₹470.91) and 200-DMA (₹543.40). The company reported a 5-year earnings CAGR of 59.7% and revenue CAGR of 15.2%, but carries a debt-to-equity ratio of 23.9 — a significant outlier versus FMCG peers — and a thin net profit margin of 4.24%. Quality and consistency scores of 50 and 53 respectively rank it mid-to-lower within its 6-company peer group.
P/E
30.3
Forward P/E
28.9
ROE
—
Debt / Equity
23.90
Profit Margin
+4.2%
Div. Yield
+0.8%
5Y ROE > 15%
0/5
5Y FCF > 0
3/5
Quality
48/100
News
8 headlines · 1 positive · 0 negative
Patanjali Foods Announces Second Interim Dividend Of Rs 1.75 Per Share — Check Record Date - NDTV Profit
NDTV Profit
Patanjali Foods Ltd gains for third straight session - Business Standard
Business Standard
Patanjali Foods allots 4,400 shares under ESOP 2023 - scanx.trade
scanx.trade
Number of shareholders of Patanjali Foods Limited – NSE:PATANJALI - TradingView
TradingView
Patanjali Foods Limited Announces Special Window for Re-lodgement of Physical Share Transfer Requests - scanx.trade
scanx.trade
Recent context
- ·Patanjali Foods announced a second interim dividend of ₹1.75 per share with a record date in April 2026, representing the most constructive near-term news item in the coverage window.
- ·ESOP 2023 allotment of 4,400 shares was disclosed in May 2026, a routine corporate action with no material price impact indicated.
- ·Price logged a third consecutive session of gains as of 15 May 2026 per Business Standard, though this follows a multi-month decline and the stock remains well below its SMA levels.
Strengths
- +5-year earnings CAGR of 59.7% indicates rapid profit growth from a low base, accompanied by a falling debt trend over the measured period.
- +Revenue CAGR of 15.2% over 5 years demonstrates meaningful top-line expansion within the competitive FMCG sector.
- +PE of 30.3 is the second-lowest among 6 sector peers (ITC at 19.0 is the only lower), suggesting the stock trades at a relative valuation discount to peers such as Nestle (79.0) and Britannia (51.3).
- +FCF was positive in 3 of available recorded years, and the company declared an interim dividend of ₹1.75 per share in April 2026, indicating some free cash generation capacity.
Weaknesses
- −Debt-to-equity of 23.9 is an extreme outlier for the FMCG sector; this level of leverage elevates refinancing and interest-cost risk, particularly if revenue growth moderates.
- −ROE has never exceeded 15% in the recorded history and is currently unreported, indicating the high earnings CAGR has not yet produced competitive returns on equity capital.
- −Price has declined 25.2% over 12 months and 30.65% from its 52-week high; the stock has remained below its 200-DMA with a current RSI of 40.5, reflecting sustained selling pressure.
- −Net profit margin of 4.24% is thin for an FMCG business, limiting the buffer against input-cost inflation or competitive pricing pressure; quality score of 50 ranks 3rd of 6 peers.
Open questions
- ?Does the debt-to-equity ratio of 23.9 reflect a structural feature of the Patanjali Foods business model (e.g., commodity procurement financing), or does it represent a trend that management has disclosed a plan to unwind?
- ?The 5-year earnings CAGR of 59.7% is high, but ROE has never cleared 15% — what does the capital allocation history reveal about how retained earnings have been deployed?
- ?With the stock 30.65% off its 52-week high and below both key moving averages, what operational or financial developments would need to materialize for the market to re-engage with the valuation?
- ?How does Patanjali Foods's 4.24% profit margin compare to its own 5-year margin history, and is the current margin a trough, a trend, or a structural ceiling given the commodity-linked cost base?
Peer comparison: FMCG
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| PATANJALI | Patanjali Foods Ltd.You're viewing | 30.3 | — | 50 |
| Industry avg | across 5 peers | 55.8 | +39.5% | 52 |
| NESTLEIND | Nestle India Ltd. | 79.0 | +76.3% | 61 |
| HINDUNILVR | Hindustan Unilever Ltd. | 50.3 | +21.6% | 58 |
| BRITANNIA | Britannia Industries Ltd. | 51.3 | +53.3% | 50 |
| TATACONSUM | Tata Consumer Products Ltd. | 79.1 | +6.9% | 45 |
| ITC | ITC Ltd. | 19.0 | — | 44 |
Technical state
Current price
₹449.95
SMA 50
₹470.91
SMA 200
₹543.40
RSI (14)
40.5 (neutral)
From 52w high
-30.6%
1Y return
-25.2%
3M return
-13.4%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 23.9 is an extreme outlier within the FMCG sector; peers such as Hindustan Unilever and Britannia typically operate with debt-to-equity well below 1.0, placing PATANJALI at materially higher balance-sheet leverage.
- highROE is not reported, and the persistence block records zero years with ROE above 15% in available history, indicating no demonstrated sustained return on equity at levels typical of quality FMCG franchises.
- mediumCurrent price of ₹449.95 is 17.5% below the 50-DMA (₹470.91) and 17.2% below the 200-DMA (₹543.40); the stock is down 25.2% over 12 months and 13.4% over the past 3 months, with a 52-week drawdown of 30.65%.
- mediumNet profit margin of 4.24% is thin relative to FMCG sector norms; consistency score of 53 and quality score of 50 (ranked 3rd of 6 peers) reflect uneven historical execution despite a 5-year earnings CAGR of 59.7%.
- lowAnalyst coverage stands at only 4 analysts with no mean rating reported, limiting statistical confidence in any consensus read; sector peer priceChange1Y is null for all 5 peers, preventing relative price-performance comparison.
Cross-section contradictions
- 5-year earnings CAGR of 59.7% and a falling debt trend coexist with zero years of ROE above 15% and a 4.24% profit margin — rapid earnings growth has not translated into sustained return-on-equity metrics.
- News flow is predominantly neutral (7 of 8 articles) with one dividend announcement; the stock is nevertheless down 25.2% over 12 months and 30.65% from its 52-week high, indicating the market has re-rated the stock independent of near-term news tone.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days