📷 Image Credits: The Economic Times
In the latest market news, Patanjali Foods Limited has been making headlines due to its recent developments and growth in the market. The company’s shares have seen a positive trend, with Axis Securities projecting a target range of Rs 1835-1950 for the stock in the coming year. Patanjali Foods shares gained 1.60% to Rs 1,672.95, showcasing a 40.76% increase in a year and a 5.73% rise since the beginning of this year.
On the technical side, the stock’s relative strength index (RSI) stands at 61.4, indicating a neutral zone in terms of trading. The stock is also trading above its moving averages, signaling a bullish trend. Analysts at Axis Securities have noted a consolidation phase in the stock’s chart, further reinforcing an upward momentum.
From a fundamental perspective, Patanjali Foods has been impacted by volatility in commodity prices, particularly in its oil business. However, the management remains optimistic about the profitability of the oil business in the second half of FY24. The food and FMCG segments continue to show strength, driven by distribution expansion and new product launches.
In terms of financial performance, the company reported a 126% increase in net profit for the quarter ended September 2023, showcasing a positive growth trajectory. Despite a slight decline in revenue in Q2, the food and FMCG segment saw a rise in revenue, while the edible oils segment faced challenges due to pricing pressure.
Overall, Patanjali Foods has been navigating the market volatility effectively and has shown resilience in its growth trajectory. With a focus on premiumization, distribution expansion, and new categories, the company is poised for further success in the market.
