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Published: August 21, 2024
Updated: August 21, 2024

Patanjali Foods Soars to Record High: Brokerage Predicts Industry-Leading Growth

A Stellar Performance

Patanjali Foods Ltd's shares have hit a record high, defying the broader market's negative sentiment. The stock gained 3.42% to reach a high of Rs 1875, with a market capitalization of Rs 67,852 crore.

Technical Analysis

Patanjali Foods' stock is trading above its 5-day, 20-day, 50-day, 100-day, 150-day, and 200-day moving averages, indicating a strong uptrend. The relative strength index (RSI) stands at 65.4, signalling a stable trading zone.

Brokerage Bullish on Patanjali Foods

Systematix brokerage has initiated coverage on Patanjali Foods with a BUY rating and a target price of Rs 2259. The brokerage expects the company to deliver industry-leading growth in the FMCG space, driven by its strong brand equity and distribution network.

Growth Prospects

Systematix predicts a 10.3%/41.3%/48.9% CAGR in revenue/EBITDA/PAT over FY24-27E, driven by Patanjali Foods' aggressive forays into emerging categories and robust margins in new premium categories.

Key Risks

The brokerage highlights volatility in edible oil prices, integration issues with the HPC business, and execution issues as key risks to the business.

Patanjali Foods' record high stock price reflects its strong growth prospects and industry-leading potential. With a BUY rating and a target price of Rs 2259, Systematix brokerage is bullish on the stock. Investors can consider this opportunity, but it's essential to weigh the risks and maintain a long-term perspective.