Ruchi Soya share, which raised eyebrows by zooming 9,434% in five months till June 26, has lost 15% in last three trading sessions after Patanjali's subsidiary announced its Q4 earnings. Share price of Ruchi Soya closed 5% or Rs 68 lower to Rs 1,292 today against previous close of Rs 1,360 on BSE. The stock opened with a loss of 5% today.
The stock stands higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages. Market cap of the firm fell to Rs 38,234 crore on BSE.
On June 29 and June 30, the share ended 5% lower each, snapping a rally of 22 consecutive sessions. Till June 29, the stock had rallied 198%. On May 27, the stock closed at Rs 515 and opened at Rs 1,535 on June 29.
Since Ruchi Soya's relisting on January 27, 2020 at a price of Rs 16.10, the stock zoomed 9,434% in five months taking the market cap of the firm to nearly Rs 45,000 crore.
However, the fall in share price came after the firm 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. Ruchi Soya announced its earnings after market hours on June 26.
However, for FY20, the firm logged a huge profit of Rs 7,672 crore due to exceptional income of Rs 7,447 crore arising out of debt and equity restructuring.
The rise in stock in five months is not backed by financial performance of the firm. This was the first quarterly earnings after Ruchi Soya stock got relisted on stock exchanges. 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.