Patanjali group has acquired Ruchi Soya a debt ridden company for 4350 , when it was in a debt of 12000cr.
You will surprise that Adani Wilmer has offered a bid of 6000 Cr for buying Ruchi Soya, but.
Patanjali has raised his voice to court arguing that the Adani Wilmar promoters are ineligible to offer bid as per Section 29A of the Insolvency and Bankruptcy Code. As per this section, a resolution applicant is ineligible to submit a plan if connected to a person who meets any of the ineligibility criteria . Patanjali argued that Adani Wilmar's managing director Pranav Adani is related to Vikram Kothari, former promoter of Rotomac group, which has allegedly defaulted on nearly Rs 3,700 crore in bank loans. Since a defaulter’s relatives are barred from bidding for companies undergoing corporate insolvency resolution, Patanjali has sought cancellation of the approval for the Adani Wilmar bid.
Patanjali is now became a brand where it has managed to get reach to even the rural market. It has verity of products from bath soap to edible oil. As the holding around 99% stake in Ruchi soya so for meeting the regulatory criteria of 75% they came with a FPO of 4300cr. The FPO price was (615-650).
Note : The Major Support is at 650. Fundamentally as well as Technically on chart.
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Positive Points about it
1) Is at Cheap Valuation compare to industry, and relative peers.
2) On chart after relisting stock is in a strong Up trend.
3) The debt to equity ratio is stable.
4) Growth potential is high as the Patanjali is very aggressive on strategy making and execution on ground.
I am fan of this man Ramdev and Balkrishna , they ran a movement of SWADESHI which was super successful. Even they surpasses Dabur.
5) Many will argue at this point, but I think Patanjali has some political advantage. It taken loan for Ruchi from the same bank who filed NCLT case against Ruchi.
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Negative Points about it
1) During FPO company has gone into many allegations of spreading misleading messages to invest in FPOs. The date for payment of FPO was extended , many FPIs withdrawn from the FPO. Such news actually hurts the sentiments of Long term investor , because this rise a lot of questions on management.
2) Stock will not behave as it was behaved earlier If you are analysing previous charts and think .... ohh this is the behaviour of this stock than you will surely make a wrong assumption because , before Patanjali acquisition stock trading on news of bidding sentiments, after acquisition as promoter were having 99% shareholding so the continuous upper circuits do not have volumes, now the free shares have increased very much so big movement like earlier will be difficult.
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Conclusion
1) We can take this stock for long term if it breaks the triangle pattern. Fresh buying can be seen after that.
2) Should keenly watch during results session. Because the recent high of 1500 was made on result day and the stock fell more than 70% after that.
3) Risky stock so manage your risk properly do not take leverage or any big position according to your sizing.
You will surprise that Adani Wilmer has offered a bid of 6000 Cr for buying Ruchi Soya, but.
Patanjali has raised his voice to court arguing that the Adani Wilmar promoters are ineligible to offer bid as per Section 29A of the Insolvency and Bankruptcy Code. As per this section, a resolution applicant is ineligible to submit a plan if connected to a person who meets any of the ineligibility criteria . Patanjali argued that Adani Wilmar's managing director Pranav Adani is related to Vikram Kothari, former promoter of Rotomac group, which has allegedly defaulted on nearly Rs 3,700 crore in bank loans. Since a defaulter’s relatives are barred from bidding for companies undergoing corporate insolvency resolution, Patanjali has sought cancellation of the approval for the Adani Wilmar bid.
Patanjali is now became a brand where it has managed to get reach to even the rural market. It has verity of products from bath soap to edible oil. As the holding around 99% stake in Ruchi soya so for meeting the regulatory criteria of 75% they came with a FPO of 4300cr. The FPO price was (615-650).
Note : The Major Support is at 650. Fundamentally as well as Technically on chart.
++++++++++++++++
Positive Points about it
1) Is at Cheap Valuation compare to industry, and relative peers.
2) On chart after relisting stock is in a strong Up trend.
3) The debt to equity ratio is stable.
4) Growth potential is high as the Patanjali is very aggressive on strategy making and execution on ground.
I am fan of this man Ramdev and Balkrishna , they ran a movement of SWADESHI which was super successful. Even they surpasses Dabur.
5) Many will argue at this point, but I think Patanjali has some political advantage. It taken loan for Ruchi from the same bank who filed NCLT case against Ruchi.
-----------------------
Negative Points about it
1) During FPO company has gone into many allegations of spreading misleading messages to invest in FPOs. The date for payment of FPO was extended , many FPIs withdrawn from the FPO. Such news actually hurts the sentiments of Long term investor , because this rise a lot of questions on management.
2) Stock will not behave as it was behaved earlier If you are analysing previous charts and think .... ohh this is the behaviour of this stock than you will surely make a wrong assumption because , before Patanjali acquisition stock trading on news of bidding sentiments, after acquisition as promoter were having 99% shareholding so the continuous upper circuits do not have volumes, now the free shares have increased very much so big movement like earlier will be difficult.
===============
Conclusion
1) We can take this stock for long term if it breaks the triangle pattern. Fresh buying can be seen after that.
2) Should keenly watch during results session. Because the recent high of 1500 was made on result day and the stock fell more than 70% after that.
3) Risky stock so manage your risk properly do not take leverage or any big position according to your sizing.