Patanjali Foods Ltd (formerly Ruchi Soya Industries) is a leading Indian FMCG company with a dominant presence in the edible oils segment, including palm, soybean, mustard, and rice bran oil under brands like Patanjali, Nutrela, Mahakosh, and Ruchi Gold. The company has expanded into biscuits, honey, pulses, spices, and nutraceuticals, backed by strong rural distribution and aggressive branding. With robust profit growth and strategic backward integration (including oil palm plantations), Patanjali Foods presents a compelling opportunity for long-term investors—but its recent bonus issue and valuation require careful analysis. This article provides a fact-based outlook and realistic share price targets for each year from 2026 to 2030.
Incorporated: 1985 (as Ruchi Soya); rebranded in 2020 after acquisition by Patanjali Ayurved
Core Business: Edible oils (72% of revenue), FMCG foods, oleochemicals, and wind power
Ownership: Promoter holding at 68.26% – controlled by Patanjali Ayurved / Baba Ramdev group
Listed: Yes – on BSE (533156) and NSE (PATANJALI)
Clarifications:
Is Patanjali Foods listed? Yes – since 1994 (as Ruchi Soya).
What was the IPO price? The original Ruchi Soya IPO (1994) was priced at ₹10 per share. Post-acquisition, the company relisted via delisting/relisting in 2019 at ₹990/share (not a traditional IPO).
Did it issue bonus shares? Yes – a 2:1 bonus issue was announced in September 2025 (record date: 11 Sept 2025).
Dividend in 2025? Interim dividend of ₹3.50/share declared; full-year likely around ₹4.50/share (0.67% yield).
Is it a good buy? Suitable for long-term FMCG investors who believe in rural penetration and brand scale—but current P/B of 4.5x leaves limited margin of safety.
Patanjali Foods: Key Financial Snapshot
Metric
Value
Market Capitalization
₹53,971.62 Cr
Current Share Price
₹496
52-Week High / Low
₹671 / ₹480
P/E (TTM)
37.83
P/B (TTM)
4.46
Book Value (TTM)
₹111.34
EPS (TTM)
₹13.11
ROE
12.13%
ROCE
15.56%
Dividend Yield
0.67%
Debt
₹781.30 Cr
Cash Reserves
₹275.30 Cr
Sales Growth (YoY)
7.61%
Profit Growth (YoY)
70.08%
Shareholding Pattern
Category
Holding (%)
Promoters
68.26%
Domestic Institutions (DII)
23.86%
Public (Retail)
7.87%
FII
0%
Others
0%
Note: Zero FII holding reflects regulatory restrictions on foreign investment in certain FMCG segments.
Based on strong profit momentum, brand expansion, and FMCG tailwinds, but tempered by modest ROE and high P/B, we project the following realistic price ranges:
Year
Target Price Range (₹)
2026
₹520 – ₹590
2027
₹560 – ₹650
2028
₹600 – ₹710
2029
₹640 – ₹770
2030
₹680 – ₹830
These targets assume:
EPS CAGR of 15–18% (supported by 70% recent profit growth, though likely to moderate)
P/B range of 4.0–4.5x (in line with FMCG peers like Dabur)
Sustained dividend payout (~35% of profits)
Year-wise Breakdown
Patanjali Foods Share Price Target 2026
Year
Target 1
Target 2
2026
₹520
₹590
Rationale: Near-term upside driven by Q3 FY26 results and bonus-adjusted affordability. However, the P/B of 4.46x limits aggressive re-rating.
Patanjali Foods Share Price Target 2027
Year
Target 1
Target 2
2027
₹560
₹650
Rationale: Expected benefit from rural demand recovery, new product launches, and oil plantation yield improvement.
Patanjali Foods Share Price Target 2028
Year
Target 1
Target 2
2028
₹600
₹710
Rationale: By 2028, backward integration in edible oils could improve margins. ROCE sustainability (~15.5%) supports premium vs commodity players.
Patanjali Foods Share Price Target 2029
Year
Target 1
Target 2
2029
₹640
₹770
Rationale: Long-term play on India’s edible oil import substitution and FMCG penetration in Tier-3/4 towns.
Patanjali Foods Share Price Target 2030
Year
Target 1
Target 2
2030
₹680
₹830
Rationale: The upper end assumes sales growth rebounds to 12%+, ROE improves above 14%, and debt/EBITDA falls below 1x. Even at ₹830, P/E would be ~40x—reasonable for quality FMCG.
Strengths vs Risks
✅ Strengths
Explosive profit growth (70% YoY)
Strong brand recall and rural distribution
Backward integration in oil seeds reduces import dependency
High promoter conviction (68% holding)
⚠️ Risks
P/B of 4.46x – rich for 12% ROE
Zero FII ownership limits institutional re-rating
Competition from Adani Wilmar, Marico, and regional brands
Working capital pressure (inventory days rising)
Investment Suitability
Factor
Assessment
Risk Profile
Moderate (FMCG with execution risk)
Time Horizon
Long-term (5+ years)
Volatility
Moderate
Dividend/Income
Low but growing (0.67% yield)
Ideal Investor
FMCG-focused investor bullish on Patanjali’s brand scale and rural reach
FAQs
Originally listed as Ruchi Soya in 1994 at ₹10/share. After acquisition, it relisted in 2019 at ₹990/share—not a conventional IPO.
Yes – a 2:1 bonus issue was implemented in September 2025.
Only for long-term believers in its brand and rural strategy. Avoid if seeking value or high ROE.
Final Verdict
Patanjali Foods is a high-growth FMCG player with strong momentum in edible oils and expanding food categories. While its valuation is stretched, its profit trajectory and market position justify a premium. Our 2026–2030 price targets (₹520–₹830) reflect steady appreciation—not speculative hype. Investors should consider accumulating on dips with a 5-year horizon.
📌 Disclaimer: Price targets are estimates based on current fundamentals and sector trends. They are not investment advice. Please consult a SEBI-registered advisor before investing.
Hi, I’m Raj Mittal, a stock market content writer focused on company analysis, share price trends, and fundamental research. I create simple, research-based insights to help investors make smarter market decisions.
