13 Sep , 2021 By : Kanchan Joshi
Shares of Patanjali-acquired Ruchi Soya surged over 3% in Monday's early deals on the BSE to Rs1,070 per share after the government announced basic import duty cut on crude palm oil, soyoil and sunflower oil as the world's biggest vegetable oil buyer tries to cool near-record price rises.
Ruchi Soya is among the largest manufacturers of edible oil in India. Rahul Sharma, Co-Founder, Equity99 said, “..in the month of August company plans to start palm oil plantations in Assam, Tripura, and other North-Eastern states. The company is currently focusing on edible oil as can be seen from Ramdev`s statement to make India self-sustainable in edible oil." The company recently got market regulator SEBI's nod for its Rs4,300 crore follow-on public offer (FPO).
“On technical charts, the stock has been trading sideways after the big rally it made, on weekly charts, it has been under the range of 1150 -1000, if the momentum continues and it breaks this consolidated range, the stock has the potential to reach in BlueSky zone again, this range breakout can take the stock to 1350-1400 levels," Sharma added.
Patanjali had acquired the erstwhile bankrupt firm known for the Nutrela brand of products in 2019 for around Rs4,350 crore through an insolvency and bankruptcy code (IBC) process. Ruchi Soya’s shares relisted on the exchanges on 27 January 2020.
The base import tax on crude palm oil has been slashed to 2.5% from 10%, while the tax on crude soyoil and crude sunflower oil has been reduced to 2.5% from 7.5%, the government said in a notification late on Friday. The base import tax on refined grades of palm oil, soyoil and sunflower oil cut to 32.5% from 37.5%.
India fulfils more than two-thirds of its edible oil demand through imports. The country imports palm oil mainly from top producers Indonesia and Malaysia, while other oils, such as soy and sunflower, come from Argentina, Brazil, Ukraine and Russia.
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