Can Patanjali Become A Malti-bagger

Patanjali Stock analysis


This resolution plan was incorporated four months ago, but in the meantime, it has been delayed due to several other obstacles that have caused investors to suffer.

Ruchi Soya Industries, about one month later Ruchi Soya NSE saw Rs4.80 4.35% upper circuit. The main cause of the upper circuit was Rs 4350cr infusion.

Ruchisoya  share complete data : Patanjali equity Infusion 4350Cr.
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In fact, Patanjali owner Baba Ramdev has written a 373cr infusion in Ruchi Soya, of which Rs 207.75 crore in equity and Rs 3233.37 crore in debt.

Apart from this, through non-convertible debentures, Patanjali will collect Rs 900 crore for Ruchisoya and also provide a guarantee of 1200cr.

Some part of the combined amount will be used by the debentures in the SPV (Patanjali Consortium Adigranth), SPV is a special tourist vehicle of Patanjali which will later be included in Ruchi Soya.

Have a look at the result:-
You also need to know
"At present, this result is based only on Ruchi soya, Patanjali has not been included,
but the next quarterly result will be very important for investors."

Sale Growth
Quarterly Results of Ruchi Soya IndustriesJun '19Mar '19Dec '18Sep '18Jun '18
Net Sales/Income from operations3,112.333,146.333,473.653,142.702,972.87
Total Income From Operations3,112.333,146.333,473.653,142.702,972.87
EXPENDITURE
Consumption of Raw Materials2,745.872,549.223,127.032,734.802,556.85
Purchase of Traded Goods64.68185.1550.3747.2672.57
Increase/Decrease in Stocks-35.5177.03-48.9836.8513.9
Employees Cost36.6637.7337.7440.8634.86
Depreciation33.7333.4736.3233.534.96
Provisions And Contingencies5.143.449.66--0.3
Profit
P/L Before Tax14.0232.116.2915.7122.61
Tax----------
P/L After Tax from Ordinary Activities14.0232.116.2915.7122.61
Net Profit/(Loss) For the Period14.0232.116.2915.7122.61
Equity Share Capital
Equity Share Capital65.2965.2965.2965.2965.29
Basic EPS0.430.980.20.480.69
Diluted EPS0.430.980.20.480.69


Can Patanjali become multi-bagger in the future?

According to me, it can become absurd if Ruchi Soya Patanjali's consolidated sales growth is equal to 2015 year on year.

In 2015, only Ruchi Soya sales increased by 31561 crores and the total income was 7.59 crores. Earnings were very low despite good sales.

If Patanjali crosses the 2015 figures then Ruchisoya can definitely prove to be a multi-bagger.


Keep in mind one thing:-

Can Patanjali Become A Malti-baggerBut still, investors will have to keep in mind that Patanjali will have a huge debt burden.
If the income is not good, then the risk for the investors will remain the same as we hope to become multi-baggers.


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Intrinsic Value