New Delhi, February 4
In the slipstream of the bigger crash of Adani Group stocks, the slide in scrips of Patanjali Foods has gone unnoticed. Over the five days this week, its shares have slid by over 16 per cent, touching a year-long low of Rs 700 as against a high of Rs 1,495 barely four months back.
Analysts are pointing at two reasons for fall, both related to market conditions and not allegations of stock market manipulation, as has been the case with the Adani Group. The first reason is said to be the underwhelming quarterly results for December.
Patanjali Foods said its revenue during the quarter rose 26 per cent on a year-on-year basis which was not what the market had expected. The drag due to lower rural demand estimated at 7 per cent led to gross profits declining by over 12 per cent and margins contracting to 2.1 per cent from 4.6 per cent in the same quarter last year. These figures set the shares on a downward trend.
What may have accentuated matters is the Centre’s decision to discontinue the import of crude soybean oil under the tariff rate quota (TRQ) from April 1, 2023. Under the tariff rate quota of 20 lakh tonnes, Patanjali and companies in the edible oil business could import a specified volume of the oil at nil duty. After the quota is reached, normal import duty is applicable.
Patjanjali as well as its competitors have now been deprived of the opportunity of importing part of the oil at nil duty which would drive the input cost higher and impact consumption in this segment. The crash of Adani Wilmar stocks may also have been partly due to this reason.
Most Read In 24 Hours
Don't MissView All
No need to worry as of now, Arvind Kejriwal says on Delhi covid spike
Says govt keeping eye on Covid situation, prepared to face a...
Death toll in Indore temple tragedy rises to 35
The slab constructed on top of an ancient `bawdi' or well co...
Navjot Sidhu likely to be released from jail on April 1
He is serving time in a road rage case dating back to 1988
Donald Trump indicted by New York grand jury over hush money payments, first US ex-president charged with crime
Trump call it ‘political persecution and election interferen...
India unveils Foreign Trade Policy 2023, eyes USD 2 trillion exports by 2030
India is likely to end this fiscal year with total exports o...