Latest news with #PatanjaliFoods
Mint
7 days ago
- Business
- Mint
LIC's June-quarter bets signal shift from momentum to value investing
India's largest domestic institutional investor, Life Insurance Corporation of India (LIC) made selective bets in its equity portfolio in the June quarter of FY26, even as global uncertainties continued to dampen foreign investor sentiment. LIC increased its stake in 54 listed companies during the quarter, reflecting a calibrated and sectoral approach to navigating market volatility. However, it also trimmed its stakes in another 64 firms on a sequential basis, a Mint analysis of 2,945 BSE-listed firms that have disclosed their shareholdings for the quarter revealed. This comes after LIC participated in State Bank of India's ₹5000-crore qualified institutional placement (QIP) on 21 July, raising its stake from 9.21% to 9.49%. The analysis also showed LIC had holdings of more than 1% in 232 companies —nearly 8% of all listed firms—in Q1FY25. Of these, it increased its holdings in roughly one out of every four, signalling a strategic accumulation spree across sectors such as FMCG, chemicals, auto components, engineering and metals. Also read Q1 moves: Retails investors bet big on property, cement and auto parts as 'smart money' retreats 'LIC's investments in mid to large caps across diverse sectors validate the broader India growth story beyond just finance or infra. This move can attract foreign players and draw retail interest to newer mid-cap names. With LIC setting the trend, other institutions and long-term investors may follow," said Kush Gupta, director at SKG Investment & Advisor. The five companies in which LIC raised its shareholding the most were Patanjali Foods, Shyam Metalics, Bharat Forge, Gujarat Fluorochemicals, and Havells India. These investments point to a broader shift in LIC's portfolio strategy—one focused less on momentum and more on deep-value and conviction plays. Patanjali Foods: Swimming against the tide In a quarter in which foreign and retail investors cut their positions in Patanjali Foods (PFL), a leading FMCG and edible oil company, LIC took a markedly contrarian approach, raising its stake by 1.48 percentage points to 9.14%. FPIs marginally trimmed their holdings by 3 percentage points to 0.21%, while individuals (holding nominal share capital up to ₹2 lakh) slashed theirs by 55 basis points (bps) to 2.62%. Mutual funds, however, aligned with LIC's stance, hiking their exposure by 1.29 bps to 1.72% sequentially during the quarter. This institutional buying came despite the stock falling 8.7% in Q1. The company's trailing price-to-earnings ratio of 53x also remains below its five-year median of 60x, indicating possible valuation comfort for long-term players. While the company's edible oil sales surged 21% year-on-year in Q4FY25 due to price hikes, the foods & FMCG segment declined 16.6% owing to subdued urban demand and seasonal weakness. 'To revive growth, PFL is expanding its retail reach, targeting ethnic foods, and scaling direct distribution to 4 million outlets," noted ULJK Research, maintaining a 'buy' rating and forecasting a 10% compound annual growth in revenue over FY25-27. Shyam Metalics: A contrarian metals play LIC's aggressive investment in Shyam Metalics and Energy (SMEL), a major producer of steel and ferro alloys, was another contrarian move. The insurance behemoth raised its stake by 1.01 percentage points to 5.47% sequentially during the quarter even as FPIs reduced their holdings by 3.37 bps to just 0.64%. Retail ownership fell by 29 bps. Despite delivering only a 2% return in Q1, LIC's bet could signal a long-term view on India's industrial metal cycle. At 28x trailing P/E, the stock trades significantly above its five-year median of 13.7x. Yet analysts believe the premium may be justified by strong fundamentals and infrastructure-led growth. 'Domestic demand for ferro alloys and structural steel remains robust, supported by the government's infra push," said Harshal Dasani, business head at INVasset PMS. 'LIC's increased holding reflects a strong belief in SMEL's long-term fundamentals." In Q1FY26, SMEL reported Ebitda of ₹633.2 crore, surpassing Bloomberg's projections. The company has earmarked ₹2,000 crore in capex for FY26 and is targeting ₹1,300-1,400 crore in revenue from its stainless steel segment. Having already invested ₹6,600 crore, it is making steady progress toward its ₹10,000 crore expansion road map, said JM Financial. Bharat Forge: Realignment in defence and EV play LIC increased its stake In Bharat Forge, a key player in auto components and defence equipment, by 91 bps to 4.95% even as FPIs pared their exposure by 1.66 percentage points. Mutual funds and retail investors increased their holdings by 44 bps and 31 bps, respectively, suggesting a broader realignment among domestic investors. The stock delivered a 12% return in Q1 but trades at a trailing P/E of 60.5x—below its five-year average of 66x. While global brokerages have turned cautious, citing weak visibility in commercial vehicles and export markets, others remain bullish. JP Morgan downgraded the stock to 'neutral', flagging a 20% decline in US class 8 truck production in 2025 and lacklustre demand in India. Revenue growth is seen at just 2% in FY26, with a recovery likely only in FY27. But LIC appears to be playing the long game. 'With stock correcting around 40% from its peak and with a robust order book and expanding presence in defence, aerospace, and electronics, Bharat Forge remains well-positioned for long-term value creation," ICICI Direct said, maintaining a 'buy' rating. Gujarat Fluorochemicals: Clean-tech conviction Despite broad-based selling, LIC raised its stake in Gujarat Fluorochemicals, a specialty chemical manufacturer, by 85 bps sequentially to 3.1% during the quarter. In contrast, foreign portfolio investors, mutual funds and retail shareholders trimmed their holdings by 38 bps, 21 bps and 17 bps, respectively. Even as the stock posted a negative 9.7% return in the quarter and trades at a steep trailing P/E of 72x—well above the five-year median of 40x—LIC's conviction in the company's long-term prospects remains intact. Dasani noted that LIC's move likely reflected faith in the company's leadership in high-performance fluoropolymers and refrigerant gases. 'These moves appear less about short-term sector rotation and more about valuation comfort and early-cycle accumulation," he said. JM Financial has initiated coverage with a 'hold' rating, citing execution risks at stretched valuations, even as battery chemicals offer long-term promise. Havells India: Steady build-up in consumption LIC also increased its stake in Havells India, a consumer electrical and appliances firm, by 84 basis points to 5.27%. Mutual funds and retail investors followed suit with 12 bps and 4 bps hikes, while FPIs exited marginally. With a muted Q1 return of 1.5%, the stock remains a proxy for India's urban consumption recovery. In Q1FY26 revenue declined 6% year-on-year, primarily due to a sharp drop in summer-oriented categories such as electrical consumer durables (ECD), which fell 14.1%, and Lloyd's appliance portfolio—largely air conditioners and cooling products—which plunged 34.4%. Also read | Indian pharma Q1 preview: Strong domestic sales to offset US drag However, infrastructure-driven segments like switchgears and wires showed resilience, growing 9.3% and 27.1%, respectively, noted Yes Securities. The brokerage upgraded the stock to 'add' while retaining its 50x valuation multiple. 'With institutional buying turning inward, market cycles may become less dependent on FPI risk appetite," said Dasani. 'LIC's conviction could act as a confidence signal—marking a subtle yet significant change in India's capital market dynamics."
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Business Standard
18-07-2025
- Business
- Business Standard
Patanjali Foods shares rally 17% in 1 week, eyes record high; here's why
Patanjali Foods share price today Patanjali Foods shares gained 2 per cent to ₹1,944.90 on the BSE in Friday's intraday trade, in an otherwise weak market, extending its rally into fifth straight trading day. The stock of the consumer goods company has surged 17 per cent during the period. Further, it is trading close to its all-time high level of ₹2,030, touched on September 4, 2024. At 10:03 AM, Patanjali Foods share price was trading 1.7 per cent higher at ₹1,942.10, as compared to 0.37 per cent decline in the BSE Sensex. CATCH STOCK MARKET UPDATES TODAY LIVE What's driving Patanjali Foods stock price? The board of directors of Patanjali Foods, in its meeting held on Thursday, July 17, 2025, recommended to issue bonus shares in the ratio of 2:1 i.e. two new equity shares each for every one existing equity share held by eligible equity shareholders of the company as on record date. The bonus issue is subject to approval of the shareholders of the company, by capitalisation of capital redemption reserve and / or securities premium and / or general reserve, the company said in exchange filing. Business overview Patanjali Foods enjoys a healthy market position across several product categories. It is the second-largest player in India's branded edible oil market, the market leader in the palm oil segment and second in position in the soybean oil segment. It is also the market leader in the soya protein segment, commanding a 35-40 per cent market share. Further, the company is the fourth-largest player in India in the biscuits segment and in the oral care market. It is also among the largest players in India in the product segments of cow ghee and honey. While the erstwhile Ruchi Soya Industries was largely focused on the edible oil business, Patanjali Foods has gradually diversified the business through the acquisition of various FMCG segments from Patanjali Ayurved. In addition to being margin accretive, these segments have also aided the diversification of Patanjali Foods' portfolio and mitigated the impact of the inherent risks associated with the edible oil segment to a certain extent. ALSO READ | Multiple order wins lift Afcons Infrastructure shares by 6%; details here The contribution of the FMCG segment to Patanjali Foods overall revenues has increased to around 30 per cent in FY2025 and is expected to grow further over the near to medium term, leading to further diversification of the business and stabilisation of earnings, according to Icra. In the absence of any major debt-funded capex, the debt protection metrics are expected to remain strong in the long term as well. Its healthy financial profile is also aided by a strong liquidity position owing to healthy cash balances, liquid investments and unutilised working capital limits, the rating agency said in rationale. As around 50 per cent of the revenue from the edible oils business is generated from palm oil, Patanjali Foods is also working towards expanding its palm plantation business, to reduce its import dependence for crude palm oil. In addition, the company has diversified to the FMCG segment to provide further stability to its earnings. About Patanjali Foods Patanjali Foods (formerly known as Ruchi Soya Industries Limited) is engaged primarily in the business of processing of oil-seeds, refining of crude oil for edible use, production of oil meal, food products from soya and value added products from downstream and upstream processing. The Company is also engaged in the Fast-Moving Consumer Goods (FMCG) and Fast Moving Health Goods (FMHG) business consisting mainly of food, biscuits and nutraceutical products.
Economic Times
17-07-2025
- Business
- Economic Times
Electrum Portfolio Managers launches AIF-Laureate, a SEBI-Registered Category III alternative investment fund
Electrum Portfolio Managers, one of India's fastest-growing investment management firms with an AUM of Rs 790 crore as of June 30, 2025, has announced the launch of AIF–Laureate, a SEBI-registered Category III Alternative Investment Fund. ADVERTISEMENT This new offering brings the proven investment philosophy of Electrum's flagship Laureate PMS strategy to a broader audience through a more flexible AIF format, according to a press release. Also Read | Patanjali Foods approves 2:1 bonus issue, record date to be announced later AIF-Laureate follows a benchmark-agnostic and sector-agnostic approach, with a bottom-up stock selection process anchored in the GARP (Growth at a Reasonable Price) style. The fund focuses on identifying under-researched small- and mid-cap companies with strong fundamentals, consistent cash flows, and substantial headroom for growth, hallmarks of sustainable wealth financial metrics, corporate governance plays a pivotal role in the fund's selection process. AIF-Laureate prioritises companies that demonstrate transparency, accountability, and ethical business practices, aligning closely with the long-term interests of investors.'We're excited to launch AIF-Laureate and extend our equity strategy through a SEBI-compliant, institutionally robust structure. This is a strategic milestone for Electrum, enabling us to serve a wider spectrum of sophisticated investors with a time-tested investment framework,' said Arpit Agarwal, Co-Founder & CIO, Electrum Portfolio Managers. ADVERTISEMENT Built for long-term capital appreciation, AIF-Laureate follows a disciplined, research-intensive approach that seeks to reduce emotional bias and navigate market volatility with consistency. The fund's structure allows for greater flexibility in strategy execution while maintaining full regulatory compliance and transparency. Designed for HNIs, Family Offices, and Institutional Investors, AIF-Laureate requires a minimum investment of Rs 1 crore, as per SEBI regulations. Also Read | Stocks, FD or Mutual Funds? Radhika Gupta shares 3 basics to smart investing ADVERTISEMENT The launch of AIF-Laureate reaffirms Electrum's commitment to democratizing access to high-quality, research-led equity investing through multiple investor-centric platforms. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
News18
17-07-2025
- Business
- News18
Bonus Issue Alert: Patanjali Foods Announces 2:1 Bonus To Shareholders
Total income increased to Rs 9,744.73 crore in the fourth quarter of the last fiscal year, up from Rs 8,348.02 crore in the corresponding period of the preceding year, according to a regulatory filing. For the 2024-25 financial year, the company's net profit grew to Rs 1,301.34 crore, up from Rs 765.15 crore the previous year. Total income for the last fiscal year rose to Rs 34,289.40 crore, compared to Rs 31,961.62 crore in the 2023-24 financial year. Patanjali Foods, established in 1986, primarily operates in the edible oil business. It also has a presence in the food & FMCG, home and personal care, and wind power generation sectors, selling products under various brands including Patanjali, Ruchi Gold, Nutrela, Dant Kanti, among others.
Time of India
17-07-2025
- Business
- Time of India
Patanjali Foods approves 2:1 bonus issue, record date to be announced later
Patanjali Foods on Thursday announced a bonus issue in the ratio of 2:1 and approved a postal ballot notice to seek shareholders' approval for the same at its board meeting. 'Considered and recommended the issue of bonus shares in the ratio of 2:1, i.e., 2 (Two) new fully paid-up equity shares of Rs 2 (Rupees Two Only) each for every 1 (One) existing fully paid-up equity share of Rs 2 (Rupees Two Only), to eligible equity shareholders of the company as on the record date, subject to shareholders' approval, by capitalization of the capital redemption reserve and/or securities premium and/or general reserve,' the company said in its exchange filing. Explore courses from Top Institutes in Select a Course Category healthcare Digital Marketing Data Analytics Others Data Science Management Leadership PGDM Technology Public Policy Cybersecurity CXO Data Science Artificial Intelligence Project Management MBA MCA Product Management Design Thinking Degree Healthcare others Operations Management Finance Skills you'll gain: Duration: 11 Months IIM Lucknow CERT-IIML Healthcare Management India Starts on undefined Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas Prices In Dubai Might Be More Affordable Than You Think Villas In Dubai | Search Ads Get Quote Undo The filing further stated that the record date for determining the eligibility of shareholders entitled to receive the bonus shares will be announced in due course. The total number of securities proposed to be issued is approximately 72,50,12,628 equity shares of face value Rs 2 each. The estimated date by which the bonus shares will be credited/dispatched is within two months from the date of the board meeting, i.e., on or before September 16, 2025. Live Events The bonus shares will be issued by capitalizing the capital redemption reserve, securities premium, and/or general reserve, subject to shareholder approval. Share capital details (pre- and post-bonus issue): - Pre-bonus paid-up share capital: 36,25,06,314 equity shares of face value Rs 2 each, aggregating to Rs 72,50,12,628 - Post-bonus paid-up share capital: 108,75,18,942 equity shares of face value Rs 2 each, aggregating to Rs 217,50,37,884 Over the last two years, shares of Patanjali Foods have risen 48.42%, and over the past three years, they are up 79.49%.
