Buy Patanjali Foods, target price Rs 1750: ICICI Direct

ICICI Direct has buy call on Patanjali Foods with a target price of Rs 1750. The current market price of Patanjali Foods is Rs 1446.95. Time period given by analyst is 12-18 months when its price can reach defined target.

Patanjali Foods, incorporated in the year 1986, is a small cap company (having a market cap of Rs 53104.64 crore) operating in Agro Processing sector.

Its key products/revenue segments include vanaspati, food products, seed extraction/meal, power generation for the year ended March 31, 2022.

Financials
For the quarter ended June 30, 2022, the company has reported a standalone total income of Rs 7370.08 crore, up 10.39 per cent from last quarter total income of Rs 6676.20 crore and up 39.16 per cent from last year same quarter total income of Rs 5295.99 crore. Company has reported net profit after tax of Rs 241.26 crore in latest quarter.

The company’s top management includes Mr.Acharya Balkrishna, Mr.Ram Bharat, Mr.Swami Ramdev, Mr.Gyan Sudha Misra, Dr.Tejendra Mohan Bhasin, Dr.Girish Kumar Ahuja. Company has Chaturvedi & Shah LLP as its auditors. As on June 30, 2022, the company has a total of 36 crore shares outstanding.

Investment rationale
PFL’s share price has gone up 34 per cent in last one year. The brokerage initiates coverage on PFL under Stock Tales format with a BUY rating and a target price of Rs 1750/share.