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GQG Increases Investment in Patanjali Foods – Shares Rally Over 5% Today!

16 April 20244 mins read by Angel One
The US-based investment firm GQG Partners has significantly increased its stake in the edible oil firm Patanjali Foods from 3.3% to 11.48%.
GQG Increases Investment in Patanjali Foods – Shares Rally Over 5% Today!
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Today, the shares of Patanjali Foods showcased significant strength in the trading session, rallying over 5% with significant volumes.

Share Performance

At the start of the day’s trading session, the stock opened at Rs 1315.15 per share, compared to the previous day’s closing figure of Rs 1335.50 per share on the BSE. Finally, the shares concluded the day at Rs 1407.70 per share, representing a gain of 5.41% or Rs 72.20 per share on the BSE.

The company’s current market capitalisation stands at Rs 50,958 crore, and the stock has generated a return of around 45% in the past year and an impressive multibagger return of around 19,615% in the past five years.

GQG Investment in Patanjali Foods

As per the latest update regarding the shareholding pattern, the promoter’s holding in the company has decreased from 73.82% to 73.77% in the March quarter of FY24, while public investors’ shares have increased from 26.18% to 26.23%.

The US-based investment firm GQG Partners has substantially boosted its ownership in Patanjali Foods, an edible oil firm promoted by Baba Ramdev-led Patanjali Ayurved. As per the latest information, GQG Partners’ stake in the company has risen to 11.48%, equivalent to 41,538,428 shares, compared to approximately 3.3% in the December quarter.

Q4 FY24 Business Update

Patanjali Foods has shared the Q4 FY24 update, and the following are the updates across the business streams. The following is a brief overview of the quarterly updates provided by the company.

Edible Oil Segment

  • Stable prices in Q4, modest single-digit revenue growth, favorable EBITDA margin.
  • Mid-single-digit volume growth year-on-year in Q4, double-digit growth in FY24.
  • Branded sales accounted for over 77% of total sales value in Q4.
  • Premium Nutrela Oils saw notable double-digit volume growth.
  • Continued export sales to over 20 countries.

Oil Palm Plantation Business

  • The cumulative area under cultivation reached 74,376 hectares in FY24.
  • Rapid plantation expansion, with around 33% from 19% as of March 2023 area under three years old.

Food & FMCG Segment

  • High single-digit revenue growth, and stable EBITDA margins in Q4.
  • Segment contributed over 30% of revenue from operations compared to 23% in Q4 FY23.
  • With strong growth momentum in the biscuits portfolio, “Doodh” biscuits became a Rs 1,000 Crore brand.
  • Sales of Ghee and Dry Fruits remained steady, Kesar and beverages registered strong growth.
  • Noteworthy double-digit YoY growth in the Nutraceuticals segment.
  • Urban demand primary driver, and rural demand is expected to pick up.

Incorporated in 1986, Patanjali Foods Limited (formerly known as Ruchi Soya Industries Limited) is one of India’s top FMCG players. The company is present in the Edible Oils, Food & FMCG, and Wind Power Generation segments via a bouquet of brands like Patanjali, Ruchi Gold, Nutrela, etc.

Investors must keep this stock on their radar.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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