FrontPage is India's Stock Market Social Network
Join 3,00,000+ Traders and Investors
RUCHISOYA
Popular Posts
R

Ramanuja

Indonesia band Palm oil export from April 28. Positive for Ruchi Soya and AWL https://www.reuters.com/world/asia-pacific/indonesia-ban-palm-oil-exports-shore-up-supply-soyoil-futures-surge-2022-04-22/ #AWL #RUCHISOYA

TradeAdda

Good News for RUCHI SOYA Investors | ruchi soya latest news https://youtu.be/4P7jC_Pi63U #RUCHISOYA #RUCHI

Jagdish Jha

Sridhar Balakrishnan

Gyanee

Market memes

Clans India

Market Buzz Bayer CropScience & BASF India could see positive momentum as Govt. likely to pass Food Safety and Standards (Genetically Modified or Engineered Foods) Regulations, 2021 in the coming Budget session which can pave the way for use of GM seeds in production of Edible Oils. GM seeds allow growers to increase output and reduce unit costs. Lower Edible oil prices could be negative for Ruchi Soya & Adani Wilmar. #BASF #BAYERCROP #RUCHISOYA #adaniwilmer

Srksagar

Intrinsic Value

BankNifty Expert

#RUCHISOYA ~~~*RUCHI SOYA* ~~~ What’s happening with Ruchi Soya? =========================== Ruchi Soya is one of the largest FMCG companies in this country. They process crude palm oil and turn it into refined oil. You’ve probably heard of the brands Nutrela, Sunrich or Mahakosh. That’s all Ruchi Soya. But the company has had a topsy turvy journey this past decade. Back in October 2011, Indonesia raised export duty on crude palm oil. Ruchi Soya’s input cost soared overnight since they imported most of their raw materials. Ideally, they should have been able to pass on this cost to their customers. However, there was one tiny problem. Indonesia had also cut export duty on refined edible oil — the end product Ruchi Soya sold. So manufacturers had a very enticing alternative — buy refined edible oil from Ruchi Soya or import from elsewhere. And since most manufacturers prioritize “cost of procurement” above all else, Ruchi Soya had no choice but to take a hit on margins. They kept competing with these cheap imports by bearing brunt of the burden themselves. Then their seed extraction business started failing. Droughts in many parts of India hit the oilseed industry. Ruchi Soya’s manufacturing facilities were barely running at half capacity. Margins kept tumbling. It was bad and when you thought things couldn’t get worse, they lost a fortune betting on castor seeds. Then they were in hot waters with SEBI and soon after, the company’s customers started bailing too. The final blow Ruchi Soya made most of its money supplying refined edible oil to other consumer goods companies. However, in a bid to push sales, they offered very generous credit terms to their customers. Collecting cash became an afterthought and at the end of the day, they were left with receivables to the tune of 5000 crores. Receivables they simply couldn't retrieve. So they gave up and took a hit on their bottom line once again. Their debt burden spiralled out of control. And in late 2017, a couple of banks finally had had enough. They dragged Ruchi Soya to the bankruptcy court and the company was now there for the taking. Here’s where things really get crazy. The lenders agreed to resolve the bankruptcy proceedings by selling Ruchi Soya to another FMCG company. Patanjali and Adani Wilmar were top contenders. Eventually, though, Patanjali won out. They acquired 99% of the company and settled ~4000 crores in dues. While this might look like an exorbitant sum, know that Ruchi Soya collectively owed ~9000 crores. Meaning the creditors only retrieved half their dues. The other half was… well… lost forever. But wait, we are not done yet. Putting up 4000 odd crores is no easy task and Patanjali did not have the resources to buy Ruchi Soya upfront. Instead, they put up around 1000 crores on their own and borrowed the rest from the same banks that had sold Ruchi Soya. So technically the banks loaned out ~3000 crores to Patanjali in a bid to retrieve 4000 crores in dues from Ruchi Soya. Fascinating!!! But wait, there’s more. Loans are often backed by collateral. Collateral that’s usually worth something. So when Patanjali borrowed 3000 crores, you’d expect them to put up something solid. Instead, they borrowed all this money by pledging Ruchi Soya shares as collateral. In fact, they pledged almost their entire shareholding (99% of Ruchi Soya) in the process. Bottom line — They borrowed 3000 crores using shares of a bankrupt company and banks complied because…. Well, we don’t know. Nonetheless, Ruchi Soya was all set to reemerge under a new promoter group and take a stab at reemerging from the void once again. The company relisted on the market back in Jan 27th, 2020. Shares that were pretty much worthless (just a year ago) began trading at 16.5. Perhaps people expected Ruchi Soya to turn the tide. But then in almost spectacular fashion, the company’s stock price rallied by a whopping 9100%. From 16.5 to 1500 in ~5 months, Ruchi Soya had defied all odds. A week ago, the company was worth 44,700 crores. It’s almost comical, to be honest. But then again, remember — less than 1% of Ruchi Soya’s shares are now trading on the open market. Very few people own these shares and if they could all act in unison they could keep buying and selling these shares at whatever value they deem fit. We’re not saying that’s what’s happening. We’re saying it’s possible. So theoretically, a small coterie of traders could keep pumping the value of the company’s stock and in turn, boost the value of Patanjali’s shareholding. And then if Patanjali were to issue new shares, they could potentially sell it a premium. A very hefty premium in fact. After all, regulations mandate Patanjali to reduce their shareholding to 90% in the next 12 months. So they’ll have to start issuing new shares or offload existing ones soon enough. Also, that collateral backing Patanjali’s ~3000 crore loan — It isn’t looking all that bad now, is it? Anyhow, Ruchi Soya’s story is far from over. Some have called this the greatest miracle of 2020. Others have called for an investigation into the rapid rise in the company’s stock price. But no matter how you look at it, this is a story that’s definitely worth talking about and now you know why…

Sridhar Balakrishnan

Buyers double today #RUCHISOYA
P

P S

R
Reputation: 1,554  •  Jul 7 8:18 AM
4 Likes
2 Comments
Share
Add a comment
Jagdish Jha-display-image
Reputation: 7,698  •  May 26 8:35 AM
Like
Comment
Share
Add a comment
Know Your Stocks-display-image
Reputation: 2,415  •  May 19 12:55 PM

AdaniWilmar trades at
Double the valuations of RuchiSoya
RuchiSoya (Patanjali foods) trades at
Double the valuations of GodrejAgrovet
The equation is simple:
GodrejAgro= Value stock + Great Mgmt
3 Likes
Comment
Share
Add a comment
Know Your Stocks-display-image
Reputation: 2,415  •  May 18 3:09 AM

*Ruchi Soya* - Patanjali is transferring its foods business to Ruchi Soya (as already indicated during the FPO meet of Ruchi Soya). The business size is ~Rs 4100 cr and expected to grow by 20-25%. Margins of the food business are 15-20%. Ruchi Soya needs to pay Rs 690 cr as the ......read more
2 Likes
Comment
Share
Add a comment
Jagdish Jha-display-image
Reputation: 7,698  •  May 5 7:05 AM

#RUCHISOYA 1087: Targets 1185 & more targets & stoploss in..
Like
Comment
Share
Add a comment
BankNifty Expert-display-image
Reputation: 44,584  •  Apr 25 3:01 AM

Indian edible oil mkt relieved, Indonesia not to ban crude palm oil export ,
This could also be beneficial to the Indian local refining industry as any move to curb import of refined oils boosts domestic oilseeds crushing and refining.
Like
Comment
Share
Add a comment
TradeAdda-display-image
Reputation: 53,194  •  Apr 24 1:46 AM
Indonesia bans palm oil exports as global food inflation spikes
The world's top palm oil producer's shock move could further inflame surging global food inflation.
Reuters
1 Like
Comment
Share
Add a comment
Jagdish Jha-display-image
Reputation: 7,698  •  Apr 12 2:57 AM
link
YouTube
Share your videos with friends, family, and the world
youtu.be
1 Like
Comment
Share
Add a comment
Sridhar Balakrishnan-display-image
Reputation: 195,586  •  Apr 10 9:02 AM
3 Likes
Comment
Share
Add a comment
Y
Reputation: 342  •  Apr 8 8:48 AM
Like
Comment
Share
Add a comment
StocksnMore-display-image
Reputation: 616  •  Mar 28 5:05 AM

Ruchi Soya FPO
1.3x, QIB: 0.9X, NII:3.7x, Retail: 0.5x
Fully subscribed till this morning.
Like
1 Comment
Share
Add a comment
StocksnMore-display-image
Reputation: 616  •  Mar 28 2:28 AM

FPO
Ruchi Soya Industries: Open: 24-Mar-22; Close: 28-Mar-22
Like
Comment
Share
Add a comment
Gyanee-display-image
Reputation: 8,139  •  Mar 28 12:49 PM
1 Like
Comment
Share
Add a comment
StocksnMore-display-image
Reputation: 616  •  Mar 25 2:24 AM

FPO
Ruchi Soya Industries:
Open: 24-Mar-22;
Close: 28-Mar-22
Like
Comment
Share
Add a comment
Market memes-display-image
Reputation: 6,894  •  Mar 24 8:17 AM
10 Likes
Comment
Share
Add a comment
StocksnMore-display-image
Reputation: 616  •  Mar 24 2:50 AM

FPO
Open: 24-Mar-22; Close: 28-Mar-22
I will wait ans share my view on 27th-28th
Like
Comment
Share
Add a comment
Clans India-display-image
Reputation: 4,732  •  Mar 23 5:25 AM

Price band & bid lot for RUCHI SOYA INDUSTRIES LIMITED FPO.
Also attached is Retail Price chart
4 Likes
Comment
Share
Add a comment
Srksagar-display-image
Reputation: 66,090  •  Jan 17 1:53 AM

Market Buzz
Bayer CropScience & BASF India could see positive momentum as Govt. likely to pass Food Safety and Standards (Genetically Modified or Engineered Foods) Regulations, 2021 in the coming Budget session which can pave the way for use of GM seeds in production of Edible Oi......read more
1 Like
1 Comment
Share
Add a comment
Spoiledbrahmin-display-image
Reputation: 1,198  •  Jul 14, 2021 6:51 AM

#RUCHISOYA : Baba Ramdev press Confreence Today at 12 pm
Like
Comment
Share
Add a comment
Intrinsic Value-display-image
Reputation: 29,645  •  Jun 14, 2021 2:10 AM
15 Likes
Comment
Share
Add a comment
Finvest Capitals-display-image
Reputation: 10,924  •  Jul 4, 2020 2:13 AM
How Ruchi soya became the hottest stock in town?
What's powering the inexplicable rise of Ruchi Soya's stock price and how did they get here ?
Finshots
Like
Comment
Share
Add a comment
P
Reputation: 16  •  Jun 27, 2019 2:51 AM
1 Like
Comment
Share
Add a comment
P
Reputation: 16  •  May 2, 2019 2:21 AM

It looks a very much upside today. Any others view?
Like
Comment
Share
Add a comment