Ruchi Soya Share Price

Company Overview

Company Journey

• 2017 saw the signing of a contract between Patanjali Ayurved Limited, which is supported by Baba Ramdev, and Ruchi Soya Industries Ltd for the physical refinement and packaging of edible oils. Ruchi Soya and Patanjali Ayurved Ltd. also sign a contract in this same year.
• Through an insolvency procedure, Baba Ramdev-led Patanjali Ayurved Limited acquired Ruchi Soya for ₹4,350 crore in 2019.
• In accordance with a business transfer agreement dated 11 May 2021, the company acquired the biscuits, rusk, cookies, and other related bakery product business from Patanjali Natural Biscuits Private Limited throughout 2021. This included the manufacturing facility in the Bhagwanpur District of Haridwar, Uttrakhand.
• GHI Energy Private Limited (GHI), a division of the corporation that had previously controlled 49% of the equity share capital, gave up its equity share capital. This division consisted of over 242 products divided into eight different categories. The company acquired the food section of Patanjali Ayurved Limited in May 2022.
• Ruchi Soya's IPO was listed on 8 April 2022 at a face value of ₹2 per share at a price of ₹615-650 per share.
• On 24 June 2022, Patanjali Foods Ltd. replaced Ruchi Soya Industries Ltd. as the new name for the company.

Business Highlights

Performance highlights

• Ruchi Soya(Patanjali Foods Ltd) has a market capitalisation of ₹44,518 crore as of 2022.
• The 2019-2022 stock price CAGR (compound annual growth rate) is 618%.
• Its 2019-2022 compounded profit growth is 118%.
• The operating profit increased from ₹126 crore in the FY (fiscal year) 2019 to ₹1491 crore in the FY ending in March 2022.
• Ruchi Soya made a net profit of ₹806 crore in the FY 2022 as opposed to ₹681 crore in the prior FY, 2021. Ruchi Soya's compounded sales growth for the last 3 years is 24%.
• Ruchi Soya is included in the following important indices, among others:
  • Nifty 200
  • Nifty 500
  • Nifty Midcap 150
  • Nifty MidSmallcap 400
  • S&P BSE 150 MidCap Index
  • S&P BSE 200
• Promoter holdings remain unchanged at 80.82% in the September 2022 quarter. Mutual Funds increased their holdings from 1.04% to 1.10% in the third quarter of 2022. The following mutual funds own Ruchi Soya stock:
  • Motilal Oswal Nifty 500 Fund Regular Growth
  • Nippon India Nifty Midcap 150 Index Fund Regular Growth
  • Bank of India Flexi Cap Fund Regular Growth
  • Mirae Asset Nifty Midcap 150 ETF
• The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) for the fourth quarter of 2021–22 was ₹419 crore with a 6.27% EBITDA margin.
• For the fiscal year that ended in March 2022, Ruchi Soya had an ROE (Return On Equity) of 16.5% and a ROCE (Return On Capital Expenditure) of 18.9%. For the same time period, its Return on Assets percentage was 10.2%.
• The Ruchi Soya Stock Price as of November 2022 was ₹1,220.

Management

• Chairman: Acharya Balkrishna
• CEO: Sanjeev Asthana
• CFO: Kumar Rajesh

Investor Relations Contact:

Industry Overview

• Adani Wilmar: ₹84,759 crore
• Gujarat Ambuja Exports Limited: ₹5,326 crore
• Agro Tech Foods: ₹1,876 crore
• AVT Natural Products Ltd: ₹1,742 crore

Risks and concerns

• Continuously changing marketing strategies: Consumer demands are rapidly changing and that demands a change in the marketing strategy. FMCG industries are required to adapt to these changes, use their strengths and utilise them in the right marketing channels, to build an approach to market the products to customers.
• Rising cost and prices: Because of the rise in input prices like selling price and administrative expenses, the profit margin is reducing slowly. Though most consumer goods companies are able to forward the cost to their consumers, it is not likely to occur when the earnings of a company are pressured.
• Hindrance in growth due to local competition: For FMCG companies, the revenues need to be very strong in order to support them to emerge in larger markets. The competition is locally high, which may hinder the path to emerging in such markets.
• Risks from sourcing of material: When producing goods that require raw material to be fetched from different parts of the world, it poses location specific risks like costs, taxes, and market position. With more diversification, too, more tentative problems may occur.
• Disruption in the supply chain: The FMCG market is associated with rapid and agile, large-scale production of products. It records a lot of logistical details as it remains close to customers through retail. A disruption in the supply chain, therefore, will pose a problem for an FMCG company.

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