Patanjali Foods Limited (PATANJALI) AI Stock Analysis

• Market Cap: ₹217.79B
• Dividend Yield: 0.22%
• Average Volume (3M): 27.28K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.72
• Revenue Growth: 15.17%
• EPS Growth: 29.56%
• Country: IN
• Employees: 5,562
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 1.67
• Shares Outstanding: 362,609,400
• 10 Day Avg. Volume: 25,049
• 30 Day Avg. Volume: 27,281
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,976.00
• Price Target Upside: 228.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: ₹1,952.00 ▲(224.93% Upside)

Patanjali Foods Limited's overall stock score is driven primarily by its strong financial performance, characterized by revenue growth and effective cost management. However, the high valuation and neutral technical indicators suggest caution. Improving cash flow and net profit margins will be crucial for enhancing the stock's attractiveness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates successful market penetration and product adoption, supporting long-term business expansion and stability.

Cost Management

Improved cost management enhances profitability and competitive positioning, allowing the company to reinvest in growth initiatives.

Balance Sheet Health

A strong balance sheet with declining leverage provides financial stability and flexibility for strategic investments and weathering economic downturns.

Negative Factors

Cash Flow Weakness

Declining operational cash flow limits the company's ability to fund growth internally and may necessitate external financing, impacting financial flexibility.

Net Profit Margin

Suboptimal net profit margins suggest potential inefficiencies or pricing pressures that could affect long-term profitability and shareholder returns.

Cash Generation

Limited cash generation relative to earnings may constrain the company's ability to invest in growth opportunities and return capital to shareholders.

Patanjali Foods Limited Business Overview & Revenue Model

Company Description

Patanjali Foods Limited (PATANJALI) is an Indian consumer goods company specializing in the production and distribution of a wide range of food products, personal care items, and health supplements. The company is renowned for its focus on natural and Ayurvedic products, leveraging traditional Indian medicine practices. Patanjali Foods seeks to provide consumers with high-quality, affordable alternatives to synthetic products, with an emphasis on health and wellness.

How the Company Makes Money

Patanjali Foods Limited makes money primarily through the sale of its diverse product line that includes packaged foods, beverages, health supplements, and personal care products. The company capitalizes on its brand image of offering natural and Ayurvedic products, which appeals to health-conscious consumers. Revenue streams include direct sales through retail outlets, online platforms, and a vast network of distributors across India and internationally. Additionally, Patanjali has strategic partnerships with retailers and e-commerce platforms to enhance its market reach. The company also benefits from its vertically integrated business model, which includes sourcing raw materials, manufacturing, and distribution, allowing for control over costs and product quality.

Patanjali Foods Limited Financial Statement Overview

Summary

Patanjali Foods Limited demonstrates strong financial performance with significant revenue growth and improved gross profit margins. The balance sheet is solid with a strong equity base and declining leverage. However, cash flow from operations has declined, impacting free cash flow, and the net profit margin has room for improvement.

Income Statement

Patanjali Foods Limited has demonstrated strong revenue growth, with a notable increase from 2024 to 2025. Gross profit margin has improved significantly, reflecting efficient cost management. The EBIT and EBITDA margins show robust operational performance. However, the net profit margin, while increasing, still leaves room for improvement.

Balance Sheet

The company maintains a healthy balance sheet characterized by a strong equity base and declining leverage, as evidenced by the decreasing debt-to-equity ratio. The equity ratio reflects strong capital structure management. However, the return on equity, while positive, indicates potential for higher returns on shareholders' investments.

Cash Flow

Cash flow from operations has declined, impacting free cash flow. The free cash flow to net income ratio is low, suggesting limited cash generation relative to earnings. However, the company has reduced capital expenditures, which is favorable for future cash preservation. Improving operating cash flow would strengthen financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	341.23B	341.57B	317.24B	312.68B	239.18B	161.68B
Gross Profit	49.21B	53.16B	38.77B	19.64B	21.09B	15.67B
EBITDA	20.08B	19.46B	13.82B	13.83B	15.39B	9.98B
Net Income	13.01B	13.01B	7.65B	8.86B	8.06B	6.81B
Balance Sheet
Total Assets	155.17B	155.17B	132.62B	132.44B	114.80B	90.09B
Cash, Cash Equivalents and Short-Term Investments	4.34B	4.34B	16.61B	8.21B	3.88B	580.32M
Total Debt	7.88B	7.88B	10.49B	14.54B	36.96B	36.60B
Total Liabilities	41.46B	41.46B	30.57B	33.97B	53.09B	49.46B
Stockholders Equity	113.71B	113.71B	102.05B	98.47B	61.71B	40.62B
Cash Flow
Free Cash Flow	0.00	527.96M	16.46B	-4.38B	6.84B	2.20B
Operating Cash Flow	0.00	1.97B	17.46B	-3.39B	7.24B	2.41B
Investing Cash Flow	0.00	-141.00M	-9.12B	5.26B	-15.62B	-415.65M
Financing Cash Flow	0.00	-6.11B	-10.15B	2.41B	11.67B	-3.07B

Patanjali Foods Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 600.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PATANJALI, the sentiment is Positive. The current price of 600.75 is below the 20-day moving average (MA) of 1796.05, below the 50-day MA of 1793.46, and below the 200-day MA of 1792.81, indicating a bullish trend. The MACD of -1.23 indicates Positive momentum. The RSI at 50.23 is Neutral, neither overbought nor oversold. The STOCH value of 47.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PATANJALI.

Patanjali Foods Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMAMILTD	76 Outperform	₹262.81B	31.94		1.33%	4.06%	10.78%
AWL	74 Outperform	₹333.11B	28.97		―	26.87%	112.88%
MARICO	71 Outperform	₹953.57B	57.00		1.43%	16.58%	9.72%
TATACONSUM	71 Outperform	₹1.09T	81.76		0.76%	14.09%	13.85%
DABUR	68 Neutral	₹971.01B	54.48		1.46%	-0.03%	-5.22%
PATANJALI	67 Neutral	₹217.79B	17.85		0.22%	15.17%	29.56%
Sector *	62 Neutral	$20.32B	14.51	-3.18%	3.18%	1.92%	-6.57%

Patanjali Foods Limited Corporate Events

Patanjali Foods’ Organic Wild Honey Sale Ban Revoked

Patanjali Foods Limited announced that a previous prohibition on the sale of a batch of its Organic Wild Honey has been revoked by the Office of Administration of Union Territory of Ladakh. The revocation follows a Referral Laboratory test report confirming that the honey batch complies with food safety regulations, ensuring its safety for consumption. This development is likely to positively impact the company’s operations and market positioning by reinstating consumer confidence in its product safety standards.