The share price of Ruchi Soya has lost more than half its value just in the last 2 months. The Patanjali-owned stock has lost as much as 56.2 percent from its 52-week high, hit on June 29, 2020, to currently trading at Rs 672. An investment of Rs 1 lakh on June 29 would have shrunk to Rs 43,778 today.

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Baba Ramdev-led Patanjali Ayurved took full control of Ruchi Soya from NCLT in December 2019 after the firm went through the insolvency process. Ruchi Soya owed bankers close to Rs 9,300 crore and was dragged to the National Company Law Tribunal (NCLT), Standard Chartered Bank and HSBC. Among the bidders for the company were Adani Wilmar and Patanjali Ayurved.

It was relisted on January 27, 2020, at Rs 16.9. Since then, the stock surged nearly 9,000 percent in five months to its 52-week high of Rs 1,535.

However, the rise in the stock during those five months was not backed by financial performance. The stock halved its value just two months later on the back of weak Q1FY20 and Q4FY19.

In Q1, Ruchi Soya reported a 13 percent decline in its net profit to Rs 12.25 crore as against Rs 14.01 crore profit in the year-ago period. Its revenue also slipped 2.2 slipped to Rs 3,043.08 crore in Q1 against Rs 3,112 crore in the same period last fiscal.

Meanwhile in Q4FY19, the first quarterly earnings after the stock's listing, it reported a loss of Rs 41.25 versus Rs 32.11 crore in the corresponding year-ago period.

Currently, 99.03 percent (about 29 crore shares) of Ruchi Soya are held by 15 Patanjali group entities. These shares are locked in for 3 years. The remaining 0.97 percent (about 28 lakh shares) is held by 82,000 public shareholders.

First Published:Aug 28, 2020 12:50 PM IST