Ruchi Soya surpasses Marico in market-cap ahead of Q4 results

With the market-cap of Rs 45,592 crore, the company today surpassed packaged foods firm Marico (Rs 44,489 crore) and United Spirits (Rs 43,354 crore)

Shares of Ruchi Soya Industries hit a fresh life-time high of Rs 1,507, up 5 per cent, on the BSE on Friday ahead of its January - March quarter (Q4FY20) results later in the day.

The stock of the edibles oil firm was locked in the upper circuit for 22nd consecutive session. In the past one month, it zoomed 178 per cent as compared to 14 per cent rise in the S&P BSE Sensex.

Since January 27, 2020 -- when it was re-listed on the stock exchanges after consolidation of equity shares of the company -- the company's stock price has appreciated by nearly 90-fold from the level of Rs 16.90 on the BSE. The stock opened for trading again after Patanjali Ayurved acquired it for Rs 4,350 crore.

A sharp rally in the stock price of Ruchi Soya Industries has helped the company to enter into the list of top-100 most valued companies in terms of market capitalisation (m-cap).

Currently, with the market-cap of Rs 45,592 crore at 01:52 pm, Ruchi Soya Industries stood at 60th position in the overall ranking. Today, the company surpassed packaged foods firm Marico (Rs 44,489 crore) and breweries & distilleries major United Spirits (Rs 43,354 crore), that have less than Rs 45,000 crore market-cap, the BSE data shows.

As on March 31, 2020, promoters held 99.03 per cent stake in Ruchi Soya Industries. The public shareholders held 0.97 per cent holding, of which, individual shareholders held 0.82 per cent stake, the shareholding pattern data shows.

“The company’s liquidity position remains adequate as of December 2019 (9MFY20), considering the absence of fixed debt obligations during FY21, a low average collection period and the availability of unencumbered liquid assets of over Rs 380 crore for meeting its required working capital needs,” Brickwork Ratings said in rating rationale last month.

"The management also plans to raise funds through public offering of shares after the completion of the one year lock-in period as per Sebi guidelines. Furthermore, additional liquidity can be raised by the company by hiving off of its non-core assets and divesting a stake in subsidiaries as and when required," it said.

Raising red-flag, the agency said the new management is yet to ramp-up operations to satisfactory levels and improve its operational efficiency over the medium term. Thus, any delay in ramping-up its operations and generating low operating profitability margins than projected will impact its credit profile over the medium term.