It is estimated that Ruchi Soya Industries Ltd has NPA debt of nearly 8,000-9,000 Cr, which is in final stages of settlement where a hair cut of nearly 60% as per the current norm can bring it down to around 4,000 Cr.
Ruchi's low Market capitalisation makes it a prime target for Global corporates wanting to enter India' consumer Market. In fact as per business insiders a Big MNC is in pursuit and there has been due diligence and negotiations are going on. What has added to Ruchi soya value is tie up with patanjali with regards to edible oil and interest shown by Patanjali to invest in it.
The Market norm for valuation of company is nearly 3 to 4 times its sale. Sale revenue of Ruchi at 18,000 Cr makes it 60,000 Cr company. With Market capitalisation of 800 Crores, it is a blind buy and can be 50x the current value.
About RUCHI SOYA INDUSTRIES LIMITED
Ruchi Soya is India’s leading Agri and Food FMCG Company with a turnover of USD 4 billion.
It enjoys Number 1 position in cooking oil and soy foods categories of the country. Its leading brand include nutrela, Nahakosh, Sunrich, Ruchi Star and Ruchi Gold. An integrated in player from farm to fork; Ruchi Soya is also among the pioneers of oil palm plantations in India. It is one of the highest exporters of value added soybean products like soy meal, textured soy protein and soy lecithin. Ruchi soya has also diversified into renewable energy and is committed to environmental protection.
Source: TST NewsdeskPrevious Next
In Conversation With Mr. Pradeep Rawat, Chairman National Shipping Board
India Tanker Shipping Trade Summit 2018