fmcg
Patanjali Foods
PATANJALI · Nifty 50
₹419
Price 2026-06-17
At a Glance
Fundamental
65/100
ADEQUATE
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Patanjali Foods scores 65/100 on fundamentals (adequate). Patanjali Foods: BROAD EXPANSION regime.
Fundamental Score: 65/100 · ADEQUATE · 2 signals detected
DuPont Analysis
ROE 12.7% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 12.66% is moderate efficiency-driven and stable. Net margin of 4.1% × asset turnover of 2.13x × leverage of 1.4x.
What This Means
Net margin of 4.1% means the company keeps ₹4.1 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 2.13x means the company efficiently uses its assets to generate revenue. Leverage of 1.4x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
13.4%
Operating
3.6%
Net
4.1%
Gross margin 13.4% → operating margin 3.6% → net margin 4.1%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.
Financial Health
Earnings Quality
WEAKCash flow only covers -0.2x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
COMFORTABLEInterest covered 11.9x — very comfortable. Debt service is not a concern. Debt/EBITDA at 1.6x is low — balance sheet has capacity.
Free Cash Flow
MODERATEFCF margin negative at -3.3% — spending more than earning. Check capex cycle.
Peer Comparison
Patanjali Foods is compared against 10 peers in the fmcg sector.
Key Watchpoints
Breaks above ₹440 (+5%)
Trend reversal confirmation
Breaks below ₹398 (-5%)
Further downside risk
Fmcg sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
OCF is only -0.2x net income. Profit not converting to cash — aggressive accounting possible.
Special charges of ₹199K Cr. May indicate restructuring, impairment, or one-time costs.
High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.
Working capital is consuming significant cash. Operational efficiency declining.
Strong insider alignment. Promoters have significant skin in the game.
Company not overvalued on revenue basis.
🔴 2 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes