RNEL shares rose 5% on Tuesday, hitting the maximum trading price of the day of ₹2.56. About 2 million buy orders were pending on both the BSE and NSE. As on September 30, 2022, nearly 194,000 small investors held shares of RNEL.

The year 2022 was marked with geopolitical tensions, inflationary worries, interest rate hikes and fears of recession, which altogether soured the sentiments for financial markets.Since the beginning of the year, till December 12, Indian domestic markets welcomed as many as 32 companies raising about Rs 50,305 crore via their initial stake sales, delivering an average listing pop of little more than 12%.

"The year 2023 will be tough, with growth slowing down globally, we are bound to see some repercussions in India. I expect a slower or quieter market in 2023, and I suspect money garnered through IPOs next year will be lower than or on the same level as 2022," said Nikhil Kamath, co-founder of True Beacon and Zerodha.

The company, earlier known as Ruchi Soya, said the quarter witnessed multiple headwinds in the edible oil segment

"We rely on a data driven approach to select stocks. With years of research experience in constructing factor based portfolios, we have been able to help our investors tide these volatile times. Over the last couple of years, we have been investing heavily in expanding our capability in AI-ML research for capital markets."

“The valuations currently would look extremely expensive. It is quoting at about 50 times forward PE which is definitely very comparable to the existing FMCG companies. People like to participate in niche companies like Patanjali and if they deliver good in terms of growth and capital raising, that will bring in an additional amount of excitement.”

Following the announcement, shares of Patanjali Foods, which was earlier known as Ruchi Soya and eventually re-branded following the acquisition by Baba Ramdev-led Patanjali Ayurved, were trading 0.6 per cent higher at Rs 1,351 at 1 pm. The stock has rallied nearly 60 per cent year-to-date.

Stating that Patanjali Foods is well on its way to be a diversified FMCG and FMHG-focused company with widely recognised brands (Ruchi, Nutrela, Patanjali) across value chain, it said the company will outperform peers through portfolio diversification and benefit from PAL's strong distribution network.

Patanjali Foods Ltd, erstwhile Ruchi Soya Industries, on Wednesday said it has laid foundation stone for setting up oil palm mill in Arunachal Pradesh and will do cultivation in 3.2 lakh hectare area in the North-East states. Patanajali Foods said it plans to undertake large-scale cultivation of oil palm plantations on 5 lakh hectares in India, out of which 3.2 lakh hectare area will be in the North Eastern region.

In the days trade, the stock hit the upper circuit limit of 5 per cent, also its new 52-week high of Rs 1,230.75. The stock has advanced 15.1 per cent in the past one year. The scrip has given a massive return of over 25,700 per cent in the last three years.

Kotak Mahindra Bank, India's fourth-largest bank in terms of market capitalisation, could be the biggest beneficiary of the FTSE change. The stock is expected to see an inflow of $61 million from foreign portfolio investors (FPIs), according to data compiled by IIFL Alternative Research.

The effective reduction in the last 45 days, including the proposed Rs 10-15 per litre cut, would reach to Rs 30-35 per litre, he said, and pointed out that its competitors have not taken similar cuts in the last one and half months.

“For the edible oil companies there could be some negative impact because there will be price deflation and so their sales growth will become negative because of it. Volume growth does not accelerate in this category because of price cut, this is a daily consumption product with high penetration.”

Abhay Agarwal, smallcase manager, founder and MD, Piper Serica Advisors, said that the markets have struggled to form a bottom in the first half faced by multiple head winds."We believe that markets are trying to form a bottom now, but we will see big inflows only if at least a couple of these issues are resolved in a concrete manner," he added.

In 2019, Baba Ramdev-led Patanjali Ayurved acquired Ruchi Soya for Rs 4,350 crore through an insolvency process.

“Our edible oil revenues are about 80% plus, the balance 20% comes from the non-edible oil portfolio which is a very large food portfolio that we have in the biscuits and confectionery, breakfast cereals etc. We are also in the process of acquiring Patanjalis food business subject to a couple of approvals which is expected to happen very soon as well,” says Sanjeev K Asthana.

JSW Steel, GAIL, Nykaa, United Spirits, Info Edge, Jindal Steel, Ruchi Soya, Astral, PB Fintech, Aarti Industries, Oil India, Sumitomo Chemicals, 3M India and Crompton Greaves are among the companies which will announce their March quarter earnings today.

“We are getting into the peak production season of palm in Malaysia and Indonesia and to that extent, the palm oil scene seems more comfortable. Soya oil and Sunflower oil are in the territory of uncertainty but net-net, the way prices have spiked, we should watch. I would not yet say that the worst is behind us.”

“I am looking at growing the food businesses by 15- 20% year on year. The edible oil business shall grow 5-10% which is the secular growth in the segment itself and some of the other categories like oil palm, etc, will have longer term tenure in terms of the growth. In four years time, that should take us closer to being a Rs 40,000-50,000 crore business.”

As of March 31, Patanjai Ayurved held a 39.37 per cent stake in Ruchi Soya. Acharya Balkrishna, one of the promoters and chairman of Ruchi Soya, holds 98.5 per cent of the paid up equity share capital of Patanjali Ayurved.

Patanjali Ayurveda-led Ruchi Soya Industries' board recently approved to rename it 'Patanjali Foods Limited'. According to media reports, the company is likely to acquire the FMCG business of Patanjali Ayurveda and revamp itself into a full-fledged FMCG player to compete with the likes of Marico, Nestle, HUL and others.

The world's top palm oil producer's shock move could further inflame surging global food inflation.

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“Just because FIIs have been net buyers in India in April so far, does not mean they have changed their stance. I would recommend that investors remain cautious about FII flows in the near term. Honestly, I do not think we have seen the full extent of FII selling in emerging markets yet.”

“The critical thing I am watching out for is where the TCS margins are because for the last two-three quarters, most of these companies have been able to hold on to margins pretty well despite inflation and huge attrition in the entire IT industry. So margin performance will be critical for stock price performance. ”

“Our personal favourite still remains Voltas which is the market leader in the air conditioning business and we expect that the company should report excellent numbers. But a dark horse could be Symphony which is Indias largest air cool manufacturing company and that has been underperforming for the last two-three years or so.”

Vedanta's board has approved a proposal to source 580 MW of green energy for its operations across India.

“In the overall home consumption space. I prefer Tata Consumer more in the long run because the tea and beverage business continues to grow double digit in volume, their Sampann brand which is into foods is doing very well and then the Starbucks AVM, which is the out of home consumption. Some of the other players will recover as the economy reopens and the stock has taken a 15-20% correction.”

Since it would be profitable to sell Ruchi Soya stocks in hand at a higher price and apply for the same at a lower price in the FPO, apparently investors did exactly that. And, they are likely to reap a handsome profit as well.

Vinod Nair, Head of Research at Geojit Financial Services said that after a strong rally last week, the market turned sideways with a negative bias as global cues haunted domestic investors forcing them to stay sidelined. "The domestic market will continue to follow global developments. An end to the war and rise in oil supply can help India to sustain its resilience or else high volatility will be a concern in the short-term," he added.

As of 2.30 pm, the issue was subscribed close to 24 per cent, with total applications coming in for 1,19,79,975 shares against 4,89,46,260 on offer.

Analysts are largely upbeat about the issue as the company is selling shares at a deep discount to the prevailing prices. Moreover, the company plans to use the fund to pay off debts, which will also strengthen its balance sheet.

“We are into MNC pharma companies like Abbot Laboratories. After the correction, we have also started to buy into Dr Lal Path Labs, a company with 35-40% ROEs, a company which has a larger market share of around Rs 800 revenues per patient. These are some metrics which we like. Apart from it, we also like the CRAM space, where Syngene has been one of the top picks in the last two, three years.”