Patanjali Foods: Street’s optimism in assigning high FMCG valuation multiples was misplaced

The Patanjali Foods stock, at its peak price of 670.33 on 16 April 2025, commanded a market capitalization of almost 73,000 crore. Given FY25’s net profit of 1,283 crore, it was valued at a price-to-earnings ratio of 57x, reflecting optimism in assigning a high FMCG valuation multiple to Patanjali.


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