Adani Wilmar Vs Patanjali Foods – Financials, Future Plans & More

Adani Wilmar Vs Patanjali Foods: The Fast-Moving Consumer Goods (FMCG) industry plays a pivotal role in our daily lives, offering essential products that are consumed on a daily basis. From the toothpaste we use in the morning to the packaged foods we rely on for our meals, the FMCG industry encompasses a wide range of products that are an integral part of our routines. Two of the major players in the industry are Adani Wilmar and Patanjali Foods. In this article, we will do a comparative analysis of Adani Wilmar vs Patanjali Foods and figure out which is the better of the two. Keep reading to find out! Adani Wilmar Vs Patanjali Foods Industry Overview With consumer-driven growth and higher product prices for essential goods, the FMCG sector has witnessed a significant expansion making it the fourth largest sector in India. During 2022-23, the sales of the FMCG sector were estimated to grow at 7-9%. The expanding growth rate are a result of the rising youth population, rising disposable income and rising awareness among consumers. The urban sector is the largest contributor to the overall revenue generated by the FMCG sector. Although, the markets for this industry have grown at a faster pace in the rural sector compared to the urban sector over the past few years. As of December 2022, the FMCG market has reached a total of US$ 56.8 billion. From 2021-2027, the total revenue of the FMCG market is estimated to grow at a CAGR of 27.9%, which will nearly be US$ 615.87 billion. Company Overview Adani Wilmar Incorporated in 1999 as a joint venture between Wilmar Group and Adani Group, Adani Wilmar Limited is one of the leading FMCG companies in India. Singapore-based Wilmar Group and Gautam Adani-led Adani Group each hold a 43.97% stake in the company, taking the total promoter shareholding to 87% The company has a wide range of products including edible oils, wheat flour, rice, pulses, sugar, and packaged foods. The company has a strong presence in the Indian market, with over 50 manufacturing plants across the Indian states. It employs 5,500 people and has a wide network of more than 7,300 distributors that serve 113 million households across the country through 1.6 million retail touchpoints. Fortune, Kohinoor, Fryola, and Wilpuff are among the well-known brands in the company’s portfolio. Patanjali Foods Incorporated in 1986, Patanjali Foods (Formerly known as Ruchi Soya) is among the top FMCG players as a prominent manufacturer and marketer of a healthy range of edible oils and a pioneer of soya foods. After the company became insolvent in 2019, it was acquired by Baba Ramdev-led Patanjali Ayurved and was rebranded as Patanjali Foods. Apart from Edible oils, the company manufactures and markets a diverse range of consumer packaged goods, soya meals, noodles, cookies, honey, and other items. The company has over 22 manufacturing units that have been strategically located in order to strike the right balance between raw materials and markets. Along with this, the firm has 7500+ distributors, 100+ sales depots, 130+ super distributors, and 1.5 million retail locations across India. Adani Wilmar Vs Patanjali Foods – Financials Before we proceed to compare the financial statements of both companies, it should be noted that data collected for Adani Wilmar is on a consolidated basis and that of Patanjali Foods is on a standalone basis Revenue Growth If we look at the revenues of both companies, Adani reported a total revenue of Rs. 58,446.16 Crores in FY23. In FY19, it reported a total revenue of Rs. 28,919.68 Crores which gives it a 4-CAGR growth of 19.23%. On the other hand, the total revenues of Patanjali Foods have increased at a faster pace from Rs. 12829.25 in FY19 to Rs 31821.45 Crores in FY23. This gives it a 4-year CAGR growth of 25.50% The table below showcases the revenue growth of Adani Wilmar Vs Patanjali Foods for the last five financial years. Fiscal Year Adani Wilmar Patanjali Foods 2019 28,919.68 12829.25 2020 29,766.98 13175.36 2021 37,195.65 16382.97 2022 54,385.89 24284.38 2023 58,446.16 31821.45 4-year CAGR 19.23% 25.50% (figures in Rs. Crores)Net Profit Growth Although the revenue figures reported by Adani Wilmar were more, Patanjali Foods has been able to report greater figures in its net profits. While Adani Wilmar reported a net profit of Rs. 582.12 Crores in FY23, Patanjali Foods reported a net profit of Rs 886.44 Crores during the same period. Between FY19 and FY23, Adani Wilmar reported a CAGR growth of 11.58%. On the other hand, Patanjali Foods reported a CAGR growth of 84.20%. The table below showcases the profit growth of Adani Wilmar Vs Patanjali Foods for the last five financial years. Fiscal Year Adani Wilmar Patanjali Foods 2019 375.52 77 2020 460.87 7,672 2021 727.64 680.77 2022 803.73 806.30 2023 582.12 886.44 4-year CAGR 11.58% 84.20% (figures in Rs. Crores)Profit Margins Though the overall operating margin of both companies is low, Patanjali Foods has comparatively outperformed Adani Wilmar. For FY23 Adani Wilmar and Patanjali Foods reported a net profit margin of 2.81% and 4.49% respectively. These figures represent that Patanjali Foods have managed its operating costs better than Adani Wilmar. The figures below compare the operating profit margins of Adani Wilmar and Patanjali Foods India over the last five fiscals. Fiscal Year Adani Wilmar Patanjali Foods 2019 2.60 0.65 2020 2.86 2.46 2021 3.14% 5.42 2022 2.96% 5.9 2023 2.81 4.49 (figures in %) The impact of high operating expenses has been reflected in their net profit margins. For FY23, Adani Wilmar and Patanjali Foods reported a net profit margin of 1% and 2.79%. The figures below compare the net profit margins of Adani Wilmar Vs Patanjali Foods India over the last five fiscals. Fiscal Year Adani Wilmar Patanjali Foods 2019 1.30 0.60 2020 1.55 58.23 2021 1.96 4.16 2022 1.48 3.32 2023 1.00 2.79 (figures in %)Return Ratios The RoE of both companies indicate an efficient return to the shareholders’ equity in the past fiscal years. But the returns of both companies show a decline in the financial year 2022-23. The figures below highlight the RoE of Adani Wilmar and Patanjali Foods for the last five fiscal years. Fiscal Year Adani Wilmar Patanjali Foods 2019 19 -1.71 2020 17 227.59 2021 25 16.75 2022 19 16.51 2023 7.6 9 (figures in %) Note: The RoE of Patanjali Foods during FY19 and FY20 show a negative and an overvalued figure because those were the years when Ruchi Soya declared bankruptcy and then was acquired by Patanjali Ayurved The RoCE of Adani Wilmar have displayed promising figures until FY22 indicating the effective use of the company’s resources. But this return has reduced to 17.18% during FY23. On the other hand, Patanjali Foods have displayed a below-average RoCE though it has increased in the past five years. The figures below highlight the RoCE of Adani Wilmar and Patanjali Foods for the last five fiscal years. Fiscal Year Adani Wilmar Patanjali Foods 2019 29 -1.88 2020 26 4.85 2021 23 12.16 2022 27 15.49 2023 17.18 14.12 (figures in %)Debt-to-equity Both companies’ debt-to-equity ratios show a positive trend over the last five years. Both companies have relied less on borrowed funds, which allows them to keep more of their revenue because they do not have a large commitment to repay debt and interest. The figures below compare the operating profit margins of Adani Wilmar and Patanjali Foods India over the last five fiscals. Fiscal Year Adani Wilmar Patanjali Foods 2019 0.32 -1.63 2020 0.37 0.93 2021 0.89 0.75 2022 0.34 0.66 2023 0.27 0.15 Future Plans So far, we have studied the company’s financial records and have gained an understanding of how each company performs. Let us now examine the future prospects of both companies to discover what they have planned. Adani Wilmar In an effort to increase its retail penetration and improve its sales productivity, the company is focusing on bringing more rural towns under its direct coverage. One of the major priorities of the company going ahead is to gain a share in the under-indexed markets and to improve its margins in the consumer pack segment. The company sees significant prospects in the hospitality, institutional, and export markets and is developing strategies to capitalise on those opportunities. Patanjali Foods The company recently announced a capex of Rs 1,500 crores which will be rolled out in the next five years. This is said to be focused towards increasing the palm oil business of the company. The company’s primary goal is to develop geographically in the international market by increasing its presence in key areas. During the year, the company generated export revenue of Rs. 530.80 crores by exporting its products to 33 countries. The company also has plans to launch new products that have high margins which enable them to increase their profits. The company has plans to get into digital channels and e-commerce segments which will enable them to reach a wider range of audience. Key Metrics We’re nearly done with our Adani Wilmar vs Patanjali Foods comparison. Let’s have a look at some important metrics for both the stocks that aren’t included previously. Particulars Adani Wilmar Patanjali Foods CMP ₹ 420 ₹ 1,175 Market Cap (Cr.) ₹ 52,870 ₹ 43,160 EPS ₹ 4.67 ₹24.5 Stock P/E 89.9 46.8 Book Value ₹ 61.5 ₹ 272 Price to Book Value 6.83 4.21 Promoter Holding 87.9% 80.8% In Closing Going Forward, both companies have set out plans that will help them increase the revenues earned. Adding to the revenues, Patanjali Foods has also set forth plans to increase its scale of operation and its margins giving it a slightly better edge over Adani Foods. Investors should keep an eye on the revenues and margins of both companies during the announcement of results that can help to drive stock value. Let us know your thoughts in the comments below. Written by Aaron Vas By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions. The post Adani Wilmar Vs Patanjali Foods – Financials, Future Plans & More appeared first on Trade Brains. [Image] Here are Some More Investing Tips and Resources. Enjoy! Sponsored [Steven's Daily Dividends Replay is Ready! Click here to watch. (No opt-in required)]( [Adani Wilmar Vs Patanjali Foods – Financials, Future Plans & More](?site= Adani Wilmar Vs Patanjali Foods: The Fast-Moving Consumer Goods (FMCG) industry plays a pivotal role in our daily lives, offering essential products that are consumed on a daily basis. From the toothpaste we use in the morning to the packaged foods we rely on for our meals, the FMCG industry encompasses a wide range of products that are an integral part of our routines. Two of the major players in the industry are Adani Wilmar and Patanjali Foods. In this article, we will do a comparative analysis of Adani Wilmar vs Patanjali Foods and figure out which is the better of the two. Keep reading to find out! Adani Wilmar Vs Patanjali Foods Industry Overview With consumer-driven growth and higher product prices for essential goods, the FMCG sector has witnessed a significant expansion making it the fourth largest sector in India. During 2022-23, the sales of the FMCG sector were estimated to grow at 7-9%. The expanding growth rate are a result of the rising youth population, rising disposable income and rising awareness among consumers. The urban sector is the largest contributor to the overall revenue generated by the FMCG sector. Although, the markets for this industry have grown at a faster pace in the rural sector compared to the urban sector over the past few years. As of December 2022, the FMCG market has reached a total of US$ 56.8 billion. From 2021-2027, the total revenue of the FMCG market is estimated to grow at a CAGR of 27.9%, which will nearly be US$ 615.87 billion. Company Overview Adani Wilmar Incorporated in 1999 as a joint venture between Wilmar Group and Adani Group, Adani Wilmar Limited is one of the leading FMCG companies in India. Singapore-based Wilmar Group and Gautam Adani-led Adani Group each hold a 43.97% stake in the company, taking the total promoter shareholding to 87% The company has a wide range of products including edible oils, wheat flour, rice, pulses, sugar, and packaged foods. The company has a strong presence in the Indian market, with over 50 manufacturing plants across the Indian states. It employs 5,500 people and has a wide network of more than 7,300 distributors that serve 113 million households across the country through 1.6 million retail touchpoints. Fortune, Kohinoor, Fryola, and Wilpuff are among the well-known brands in the company’s portfolio. Patanjali Foods Incorporated in 1986, Patanjali Foods (Formerly known as Ruchi Soya) is among the top FMCG players as a prominent manufacturer and marketer of a healthy range of edible oils and a pioneer of soya foods. After the company became insolvent in 2019, it was acquired by Baba Ramdev-led Patanjali Ayurved and was rebranded as Patanjali Foods. Apart from Edible oils, the company manufactures and markets a diverse range of consumer packaged goods, soya meals, noodles, cookies, honey, and other items. The company has over 22 manufacturing units that have been strategically located in order to strike the right balance between raw materials and markets. Along with this, the firm has 7500+ distributors, 100+ sales depots, 130+ super distributors, and 1.5 million retail locations across India. Adani Wilmar Vs Patanjali Foods – Financials Before we proceed to compare the financial statements of both companies, it should be noted that data collected for Adani Wilmar is on a consolidated basis and that of Patanjali Foods is on a standalone basis Revenue Growth If we look at the revenues of both companies, Adani reported a total revenue of Rs. 58,446.16 Crores in FY23. In FY19, it reported a total revenue of Rs. 28,919.68 Crores which gives it a 4-CAGR growth of 19.23%. On the other hand, the total revenues of Patanjali Foods have increased at a faster pace from Rs. 12829.25 in FY19 to Rs 31821.45 Crores in FY23. This gives it a 4-year CAGR growth of 25.50% The table below showcases the revenue growth of Adani Wilmar Vs Patanjali Foods for the last five financial years. Fiscal Year Adani Wilmar Patanjali Foods 2019 28,919.68 12829.25 2020 29,766.98 13175.36 2021 37,195.65 16382.97 2022 54,385.89 24284.38 2023 58,446.16 31821.45 4-year CAGR 19.23% 25.50% (figures in Rs. Crores)Net Profit Growth Although the revenue figures reported by Adani Wilmar were more, Patanjali Foods has been able to report greater figures in its net profits. While Adani Wilmar reported a net profit of Rs. 582.12 Crores in FY23, Patanjali Foods reported a net profit of Rs 886.44 Crores during the same period. Between FY19 and FY23, Adani Wilmar reported a CAGR growth of 11.58%. On the other hand, Patanjali Foods reported a CAGR growth of 84.20%. The table below showcases the profit growth of Adani Wilmar Vs Patanjali Foods for the last five financial years. Fiscal Year Adani Wilmar Patanjali Foods 2019 375.52 77 2020 460.87 7,672 2021 727.64 680.77 2022 803.73 806.30 2023 582.12 886.44 4-year CAGR 11.58% 84.20% (figures in Rs. Crores)Profit Margins Though the overall operating margin of both companies is low, Patanjali Foods has comparatively outperformed Adani Wilmar. For FY23 Adani Wilmar and Patanjali Foods reported a net profit margin of 2.81% and 4.49% respectively. These figures represent that Patanjali Foods have managed its operating costs better than Adani Wilmar. The figures below compare the operating profit margins of Adani Wilmar and Patanjali Foods India over the last five fiscals. Fiscal Year Adani Wilmar Patanjali Foods 2019 2.60 0.65 2020 2.86 2.46 2021 3.14% 5.42 2022 2.96% 5.9 2023 2.81 4.49 (figures in %) The impact of high operating expenses has been reflected in their net profit margins. For FY23, Adani Wilmar and Patanjali Foods reported a net profit margin of 1% and 2.79%. The figures below compare the net profit margins of Adani Wilmar Vs Patanjali Foods India over the last five fiscals. Fiscal Year Adani Wilmar Patanjali Foods 2019 1.30 0.60 2020 1.55 58.23 2021 1.96 4.16 2022 1.48 3.32 2023 1.00 2.79 (figures in %)Return Ratios The RoE of both companies indicate an efficient return to the shareholders’ equity in the past fiscal years. But the returns of both companies show a decline in the financial year 2022-23. The figures below highlight the RoE of Adani Wilmar and Patanjali Foods for the last five fiscal years. Fiscal Year Adani Wilmar Patanjali Foods 2019 19 -1.71 2020 17 227.59 2021 25 16.75 2022 19 16.51 2023 7.6 9 (figures in %) Note: The RoE of Patanjali Foods during FY19 and FY20 show a negative and an overvalued figure because those were the years when Ruchi Soya declared bankruptcy and then was acquired by Patanjali Ayurved The RoCE of Adani Wilmar have displayed promising figures until FY22 indicating the effective use of the company’s resources. But this return has reduced to 17.18% during FY23. On the other hand, Patanjali Foods have displayed a below-average RoCE though it has increased in the past five years. The figures below highlight the RoCE of Adani Wilmar and Patanjali Foods for the last five fiscal years. Fiscal Year Adani Wilmar Patanjali Foods 2019 29 -1.88 2020 26 4.85 2021 23 12.16 2022 27 15.49 2023 17.18 14.12 (figures in %)Debt-to-equity Both companies’ debt-to-equity ratios show a positive trend over the last five years. Both companies have relied less on borrowed funds, which allows them to keep more of their revenue because they do not have a large commitment to repay debt and interest. The figures below compare the operating profit margins of Adani Wilmar and Patanjali Foods India over the last five fiscals. Fiscal Year Adani Wilmar Patanjali Foods 2019 0.32 -1.63 2020 0.37 0.93 2021 0.89 0.75 2022 0.34 0.66 2023 0.27 0.15 Future Plans So far, we have studied the company’s financial records and have gained an understanding of how each company performs. Let us now examine the future prospects of both companies to discover what they have planned. Adani Wilmar In an effort to increase its retail penetration and improve its sales productivity, the company is focusing on bringing more rural towns under its direct coverage. One of the major priorities of the company going ahead is to gain a share in the under-indexed markets and to improve its margins in the consumer pack segment. The company sees significant prospects in the hospitality, institutional, and export markets and is developing strategies to capitalise on those opportunities. Patanjali Foods The company recently announced a capex of Rs 1,500 crores which will be rolled out in the next five years. This is said to be focused towards increasing the palm oil business of the company. The company’s primary goal is to develop geographically in the international market by increasing its presence in key areas. During the year, the company generated export revenue of Rs. 530.80 crores by exporting its products to 33 countries. The company also has plans to launch new products that have high margins which enable them to increase their profits. The company has plans to get into digital channels and e-commerce segments which will enable them to reach a wider range of audience. Key Metrics We’re nearly done with our Adani Wilmar vs Patanjali Foods comparison. Let’s have a look at some important metrics for both the stocks that aren’t included previously. Particulars Adani Wilmar Patanjali Foods CMP ₹ 420 ₹ 1,175 Market Cap (Cr.) ₹ 52,870 ₹ 43,160 EPS ₹ 4.67 ₹24.5 Stock P/E 89.9 46.8 Book Value ₹ 61.5 ₹ 272 Price to Book Value 6.83 4.21 Promoter Holding 87.9% 80.8% In Closing Going Forward, both companies have set out plans that will help them increase the revenues earned. Adding to the revenues, Patanjali Foods has also set forth plans to increase its scale of operation and its margins giving it a slightly better edge over Adani Foods. Investors should keep an eye on the revenues and margins of both companies during the announcement of results that can help to drive stock value. Let us know your thoughts in the comments below. Written by Aaron Vas By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions. The post Adani Wilmar Vs Patanjali Foods – Financials, Future Plans & More appeared first on Trade Brains. 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