Patanjali Foods Ltd.
FMCG · NSE
52-week range
₹449 – ₹649
From 52w high
-28.9%
RSI (14)
45.3
vs SMA 50 / 200
↓ 50 · ↓ 200
Patanjali Foods (PATANJALI) is an FMCG company trading at ₹460.6, down 24% over the past 12 months and 29% from its 52-week high, with the price below both its 50-day SMA (₹475.33) and 200-day SMA (₹546.38). The stock carries a debt-to-equity ratio of 23.9 — far above FMCG sector norms — alongside a 4.24% net profit margin and a quality score of 50 out of 100, ranking 3rd among 6 FMCG peers. Five-year revenue CAGR of 15.2% and earnings CAGR of 59.7% represent notable growth, though FCF has been positive in only 3 of the available years and ROE has not exceeded 15% in any recorded year.
- ✓5-year earnings CAGR of 59.7% and revenue CAGR of 15.2% indicate substantial top- and bottom-line expansion over the medium term.
- ✓Debt trend is classified as falling, suggesting the company has been reducing its leverage position even from an elevated starting point of D/E 23.9.
- ✓PE of 30.4 is the 2nd lowest among the 6 FMCG peers tracked (peers range from 18.9 to 81.6), reflecting a relatively lower earnings multiple within the sector.
- ✓Two interim dividends were declared in Q4 FY2026, with a yield of 0.76%, indicating the company is returning cash to shareholders despite its debt load.
- ✗Debt-to-equity of 23.9 is a significant outlier in the FMCG sector, where peers such as Hindustan Unilever carry structurally lower leverage; this level of debt materially increases financial risk in a rising-rate or demand-slowdown scenario.
- ✗ROE has not exceeded 15% in any year recorded in the persistence data, and current ROE is unavailable (null) — the high earnings growth rate has not produced consistently strong returns on shareholder equity.
- ✗The stock is 24.03% lower than 12 months ago and 29% below its 52-week high, trading below both key moving averages (SMA50 ₹475.33, SMA200 ₹546.38) with RSI at 44.4, reflecting sustained price weakness.
- ✗Net profit margin of 4.24% is thin for an FMCG business; the FCF record shows positive free cash flow in only 3 of the available years, and the consistency score of 53 reflects uneven historical earnings quality.
- ·Q1 2026 results were reported (per Mint, May 2026) alongside a second interim dividend of ₹1.75 per share declared on April 21, 2026, with a record date set; these are the primary near-term news catalysts.
- ·Four of eight recent news items carry positive sentiment, all centered on dividend announcements — no negative headlines appeared in the tracked period, though stock price performance over the same window has been negative.
- ·The 52-week drawdown of 29.01% and 3-month decline of 10.32% have occurred during a period of dividend activity, indicating that distribution news has not reversed the price trend.
- ?Does the 59.7% 5-year earnings CAGR reflect genuine structural improvement in the business model, or does it partly reflect a low base effect from an earlier period of losses or restructuring?
- ?At a D/E ratio of 23.9, what is the composition of debt (short-term vs long-term, secured vs unsecured), and how does the interest coverage ratio compare to FMCG peers given the thin 4.24% profit margin?
- ?With ROE below 15% in every recorded year despite rapid earnings growth, what is the trajectory of capital efficiency, and at what point might asset turnover or margin expansion begin to improve return on equity?
- ?How does the company's edible-oils and food segment exposure influence revenue and margin sensitivity to commodity price cycles, and how has this played out in the FCF-negative years within the available history?
PE
30.4
Forward PE
29.0
ROE
—
Profit margin
+4.2%
D/E
23.90
Dividend yield
+0.8%
Quality score
50/100
ROE 5y above 15%
0/5 yrs
FCF 5y positive
3/5 yrs
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.Analysis generated 11 May 2026.