Shares of Patanjali Foods tumbled as much as 20 per cent on Wednesday, hitting a fresh 52-week low and their lowest level since April 2020, before recovering some of the losses later in the trading session
MUMBAI — Shares of Patanjali Foods tumbled as much as 20 per cent on Wednesday, hitting a fresh 52-week low and their lowest level since April 2020, before recovering some of the losses later in the trading session.
The stock fell to INR 328.20 on the NSE, extending its prolonged decline and nearly halving from the peak it had touched in July last year.
Following the sharp correction, the company issued a clarification to the stock exchanges, stating that there were no material events or developments that warranted disclosure and could explain the sudden movement in its share price.
“With reference to the significant movement in the price of the company's equity shares, we wish to clarify that the company continues to remain focused on its growth path and is carrying on its business operations in the ordinary course, while pursuing its business objectives,” it said in its stock exchange filing.
“To the best of the knowledge of the management, there are presently no material events, information or circumstances requiring disclosure to the Stock Exchanges under the applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015,” it added.
The stock later pared some losses and was trading around 16 per cent lower at about INR 345 apiece in afternoon trade.
The recent sell-off has intensified the pressure on the FMCG and edible oil company's stock.
Patanjali Foods has declined nearly 19 per cent over the past month and around 37 per cent so far this year.
On the BSE, the stock has fallen nearly 16 per cent in the past week, over 16.7 per cent in the last two weeks, close to 26 per cent over the past three months and more than 36.6 per cent in the last six months. On a year-to-date basis, the shares are down about 37.8 per cent.
Formerly known as Ruchi Soya Industries, Patanjali Foods is among India's leading edible oil and fast-moving consumer goods (FMCG) companies, with businesses spanning edible oils, foods, household products and personal care.