Shares of Patanjali Foods rose nearly 5% to Rs 948.90, recovering 10% from a low of Rs 865 on the BSE in intraday trade on Monday. Shares of the Baba Ramdev-backed FMCG company have slumped 21% from Rs 1,206.45 on January 24, 2023, in the past eight trading sessions.

Patanjali Foods was trading 4% higher at Rs 943.50 at 11:54 am, while the S&P BSE Sensex was down 0.66%. The average trade volume on the counter jumped 1.4 times today. A total of 3.63 lakh shares changed hands on the NSE and BSE. Currently, Patanjali Foods is traded under Group T on the BSE. Every transaction must be delivered in the T2T link, and net intraday positions are not allowed.

Patanjali Foods has not been doing well in the market lately. The stock has fallen 11% over the past week, compared with a 1.6% gain for the S&P BSE Sensex. In a month, it’s down 20%, while the benchmark index has gained nearly 1%. Moreover, it has lost 31% over the past three months, compared with a 1% decline in the Sensex. The stock hit a 52-week high of Rs 1,495 on September 22, 2022.

Part of the reason for the recent underperformance is the government’s decision to stop imports of crude soybean oil under the Tariff Rate Quota (TRQ) from April 1 this year.

Patanjali Foods (formerly Ruchi Soya Industries Limited), a diversified Fast Moving Consumer Goods (FMCG) and Fast-Moving Health Goods (FMHG) focused company with 25 strategically located manufacturing plants, pan-India presence and distribution of reputed brands 6.23 lakh hectares of oil palm plantations.

Patanjali Foods’ profit after tax (PAT) rose 139.73% quarter-on-quarter to Rs 269.18 crore in the October-December quarter (Q3FY23), bolstered by healthy operating performance. EBITDA increased 97.5% quarter-on-quarter to Rs 406 crore. EBITDA margin improved 270 basis points to 5.11% from 2.41% in Q2FY23. Operating income, however, fell 6.9% quarter-on-quarter to Rs 7,926 crore. On a year-over-year basis, revenue and PAT increased by 26.2% and 15%, respectively.