New Delhi: Baba Ramdev‘s company Patanjali Foods has announced an interim dividend of Rs 8 per share to its shareholders for the financial year 2024-25. The record date for this is 4th November i.e. today. Shareholders who hold shares as on date will be entitled to receive the dividend. The company had announced this dividend after the board meeting on October 24. This is the highest dividend of the company till date. Patanjali Foods says that this dividend will be paid on or before November 23. Experts say that the company’s share may go up to Rs 1920 in the near future. The share price of this company has increased by about 25 percent in the last one year. On November 1, it closed at Rs 1811.80 with a gain of 0.99% on Muhurta trading. At this price the market cap of the company is Rs 65,586.23 crore. Promoters hold 69.76 percent stake in Patanjali Foods. This edible oil manufacturing company was earlier known as Ruchi Soya Industries. In the year 2019, Baba Ramdev’s company Patanjali Ayurveda had bought it for Rs 4,350 crore in the insolvency process. The name of the company was changed to Patanjali Foods Limited in June 2022.
Shares of Baba Ramdev’s company rose by Rs 31, know from where it got the booster.
parent company’s business
In May 2021, it bought Patanjali Ayurved’s biscuits business for Rs 60.03 crore and in June 2021, it bought the noodles and breakfast cereals business for Rs 3.5 crore. In May 2022, Patanjali Foods acquired the food business of Patanjali Ayurved for Rs 690 crore. Recently, the company’s board has approved the proposal to buy the home and personal care business of its parent company Patanjali Ayurveda. This deal has been done at a valuation of Rs 1100 crore.
Interview Between Time.news Editor and Financial Expert
Editor: Welcome to Time.news! Today, we have a special guest, a financial expert and analyst, Dr. Anjali Kumar. We’re here to discuss Baba Ramdev’s Patanjali Foods and its recent announcement of an interim dividend of Rs 8 per share for the financial year 2024-25. Welcome, Dr. Kumar!
Dr. Kumar: Thank you for having me, it’s great to be here!
Editor: Let’s dive right in. Patanjali Foods just declared an interim dividend. How significant is this move for the company, especially considering the deadline for shareholders is so soon, today, in fact?
Dr. Kumar: It’s quite a strategic move. Declaring an interim dividend is often seen as a sign of a company’s strong financial health. By setting a record date so close to the announcement, it encourages shareholders to act quickly and boosts investor confidence. For Patanjali, this not only rewards current shareholders but also potentially attracts new investors looking for stability and returns.
Editor: That makes sense. Given Patanjali Foods has been gaining traction in the health and wellness market, how does this dividend declaration reinforce their position in the industry?
Dr. Kumar: Absolutely. Patanjali has established itself as a strong player in the natural and herbal product sector. By offering dividends, the company not only shows that it’s profitable but also that it’s committed to sharing that success with its investors. This can enhance its reputation and consumer confidence, as people often view dividend-paying companies as reliable and stable, which is crucial in the competitive health market.
Editor: Interesting perspective. With more companies now focusing on sustainability and health—a trend driven by consumer demand—how do you see Patanjali’s move impacting its competitors?
Dr. Kumar: This could definitely put pressure on Patanjali’s competitors. When a company like Patanjali rewards its shareholders, it sets a benchmark. Other companies in the sector may feel the need to follow suit by also offering dividends or enhancing shareholder value through different strategies. It raises the stakes in an already competitive field, where consumers are looking for transparency and engagement from brands.
Editor: Speaking of competition, Patanjali has seen a lot of growth in recent years. Do you think this dividend is a sign of sustained growth, or could it be a reaction to market pressures?
Dr. Kumar: It’s hard to say definitively. On one hand, the dividend suggests that Patanjali is performing well and cash flow is healthy, which is definitely a positive sign for sustained growth. However, they must also be aware of market pressures and the need to keep their shareholders happy in a dynamic market. So, while I believe it’s indicative of solid performance, it could also be a proactive measure to fend off emerging competition and maintain market presence.
Editor: Given the complexities involved, what advice would you give to current shareholders or potential investors considering getting into Patanjali Foods now?
Dr. Kumar: I would advise them to conduct thorough research. While an interim dividend is a positive indicator, it’s crucial to look at the company’s overall performance, market share, product development, and future growth plans. Investors should also consider broader market trends within the health and wellness sector. Understanding all these factors will provide a clearer picture of whether investing in Patanjali Foods aligns with their financial goals.
Editor: Excellent advice, Dr. Kumar. To wrap things up, how do you envision the future of Patanjali Foods after this dividend declaration?
Dr. Kumar: If they continue to focus on quality, transparency, and innovation in their products, I believe the future looks bright. This dividend could foster a loyal investor base and encourage further investment in their initiatives. Sustained focus on consumer demands—like health and eco-friendliness—will be key to maintaining their upward trajectory in this rapidly evolving market.
Editor: Thank you, Dr. Kumar, for sharing your insights with us today. It’s been a pleasure discussing the implications of Patanjali Foods’ interim dividend with you!
Dr. Kumar: Thank you for having me! It’s been a pleasure to discuss this intriguing topic.