Investment in the share market is always associated with unpredictable risks and in case of Ruchi Soya Infustries, we cannot anticipate its financial health since its debt has almost touched to the level of 12, 000 crores according to the financial report published in 2018. However, the consolation part of its restoration of financial health is due to its take over by the Patanjali Aurveda in the year 2019.
Now looking back of its history, Ruchi Soya was established in the year 1988 with the working capital of 750 crores and till 2008, it had established its leadership role in the manufacturing and selling of bakery and soya foods. The company has numerous plants producing brands such as Nutrela, Mahakosh, Ruchi Star, Ruchi Gold etc.
Though the past performance of the company was quite encouraging but it could not maintain consistency in terms of profit in the year 2017 to 2019. Its price on 1 st January 2019 was quoted at Rs 9.40 but the same nosedived on 24 the July 2019 to a low level at Rs 3.27.
Surprisingly, its share price has moved to Rs 270/- on 17 th April 2020 indicating an unexpected surge of its price. Such a phenomenal growth does not establish the real cause of the surge of the price. Here we can simply speculate that such a high move of the price may be due to recovery of its financial strength or may be some elements are operating to enhance its share price.
You need to watch cautiously prior to making any heavy investment in this portfolio or still better, you may have the option to approach a financial consultant for the better guidance.