The share price of Patanjali Foods witnessed a decline of 3.91% in Wednesday’s trading session, reaching a low of Rs 1,556.80. This drop followed the Supreme Court’s decision to prohibit Patanjali Ayurved from running advertisements promoting its traditional ayurvedic medicines that claim to cure certain diseases. Patanjali Foods, a subsidiary of Patanjali Ayurved, clarified in a BSE filing that the SC order does not pertain to its operations.
The Supreme Court’s ruling was part of an ongoing legal dispute with the Indian Medical Association (IMA), which has accused Patanjali of making derogatory remarks about other forms of conventional medicines. The court noted Patanjali’s breach of its assurance from the previous year, where it pledged not to release advertisements containing statements implying medicinal effectiveness casually.
Patanjali Foods emphasized that the observations made by the Supreme Court do not affect its business operations or financial performance. Despite the dip in stock price, the company assured investors that its FMCG products, including edible oils and food items, remain unaffected.
As the stock traded close to its one-year high of Rs 1,741, analysts advise caution, suggesting that fresh buying may not be advisable at the current market price. However, existing investors are encouraged to maintain a strict stop-loss strategy, with a stop-loss level set at Rs 1,500.
With promoters holding a significant stake of 73.82% in the company as of the December 2023 quarter, Patanjali Foods aims to navigate through this period of market volatility.
(Disclaimer: This article provides stock market updates for informational purposes only and does not constitute investment advice. Readers are advised to seek guidance from a qualified financial advisor before making any investment decisions.)
