Share price of Patanjali Group firm Ruchi Soya has more than halved in last two months. The stock which hit a 52-week high of Rs 1,535 on June 29 has slumped to Rs 672 in today's session. An investment of Rs 1 lakh in Ruchi Soya on June 29, 2020 would have shrunk to Rs 43,778 today, translating into wealth erosion of 56% during the period.

The fall in stock has been accompanied by weak Q1 and Q4 earnings in last fiscal. In Q1, Ruchi Soya reported a 13% decline in its net profit to Rs 12.25 crore for the first quarter ended June 30 against Rs 14.01 crore profit reported in the year-ago period. Revenue slipped 2.2% to Rs 3,043.08 crore in Q1 against Rs 3,112 crore in the same period last fiscal.

The announcement of Q1 result was made after market hours on August 19, 2020. Reacting to Q1 earnings, Ruchi Soya share hit lower circuit of 5% in next session, falling to intra day low of Rs 683.9. The stock fell after two days of gain.

Similarly, the stock slipped off its 52-week high after the firm announced its Q4 earnings in last fiscal. The share fell 5% each in three trading sessions after Patanjali's subsidiary announced its earnings. The edible oil maker reported a loss of Rs 41.25 crore for Q4 against profit of Rs 32.11 crore in the corresponding period of 2018-19. Loss came on the back of inclusion of exceptional items of Rs 18.43 crore in Q4. This was the first quarterly earnings after Ruchi Soya stock got relisted on stock exchanges.

Acharya Balkrishna steps down as Ruchi Soya MD

Since Ruchi Soya's relisting on January 27, 2020 at a price of Rs 16.10, the stock had zoomed 9,434% in five months taking the market cap of the firm to nearly Rs 45,000 crore.

The rise in stock in five months was not backed by financial performance of the firm. In December 2019, Baba Ramdev-led Patanjali Ayurved took full control of Ruchi Soya from NCLT in December last year after the firm went through insolvency process.

Patanjali injuncted from using trademark 'Coronil', Madras High Court imposes Rs 10 lakh fine

Ruchi Soya share closed 1.37% higher today at Rs 672 against previous close of Rs 662 on BSE.

By Aseem Thapliyal

Coronavirus drug: Maharashtra minister threatens action against Patanjali for misleading public

Patanjali\'s Ruchi Soya stock suffers weight loss! Falls from Rs 1\,535 to Rs 672 in two months

Patanjali's Ruchi Soya stock suffers weight loss! Falls from Rs 1,535 to Rs 672 in two months

An investment of Rs 1 lakh in Ruchi Soya on June 29, 2020 would have shrunk to Rs 43,778 today, translating into wealth erosion of 56% during the period.