Buzzing Stock: Ruchi Soya soars 6.9% post Q3FY22 results

The company plans to expand its existing product portfolio of nutraceuticals products.

Ruchi Soya Ltd, which is owned by Baba Ramdev-led Patanjali Ayurveda, is engaged in the manufacture of edible oils, vanaspati, bakery fats and soya foods. The company is a leader in the branded edible oil category as well with brands like Nutrela Soyumm (Soyabean Oil), Ruchi Gold (Palmolein Oil), Sunrich (Sunflower Oil) and Mandap (Mustard Oil). The stock was up by 6.90 per cent in the early trading session of Monday.

The company recently reported its quarterly numbers for December 2021. The company has reported 4.76% QoQ growth in net sales and 40.65% YoY growth. Net profit of the company in Q3 stands at Rs 234.07 crore which is a 42.49% growth from Rs 164.27 crore reported in Q2. PBIDT margins of the company shrunk by 96 basis points as compared to the corresponding period of last year. While net profit margins of the company shrunk by 136 basis points YoY.

According to filling, the company has also forayed into 100% Vegetarian Nutraceutical and wellness products under the joint branding of Nutrela and Patanjali. Ruchi Soya has over 56,000 hectares under oil palm cultivation engaging with more than 39,000 farmers across nine states in India. The company is also engaged in the wind power generation business out of which 19% is used for captive consumption. Ruchi Soya said it has strongly positioned itself with a diversified portfolio of products to capitalize on the trend of a shift in consumer preferences towards trusted and branded packaged foods amid the Covid-19 pandemic.

In the current year, it has launched “Ruchi Sunlight” a blended edible oil, biscuits, cookies, rusk, breakfast cereals, atta (wheat) noodles and other associated bakery products under the Patanjali brand name. The company has also tied up with Patanjali giving it access to Patanjali’s large distribution network and enabling it to leverage its product portfolio across new and incremental markets.

Ruchi Soya Industries Limited has filed a draft red herring prospectus with SEBI in relation to a further public offering proposed by Ruchi Soya (“FPO”).

At 1:45 pm on Monday the stock of Ruchi Soya. Ltd was trading at Rs 875, up by 6.90% or Rs 56.5 per share. The 52-week high of the scrip is recorded at Rs 1,377 and the 52-week low at Rs 619 on the BSE.

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