After 16% Surge In 5 Sessions And 2:1 Bonus Shares News, Is Patanjali Foods Due For A Cool-Off?

At higher levels, Patanjali Foods has been stabilizing within a broad trading range and is now trading at about Rs 1,929. Supported by steady volumes, the stock has gone up by more than sixteen percent over the last five trading days, indicating strength in the current upward trend. The FMCG behemoth, however, has been in the limelight following the recent Board meeting on Thursday, July 17, 2025, where the first-ever 2:1 bonus shares were announced. This sparked more upward momentum in the stock, which closed the Friday trading session 1.01% higher at Rs 1,928.50.

Patanjali Foods Bonus Shares

The Board of Directors of the company "considered and recommended for issue of bonus shares in the ratio of 2:1 i.e. 2 (Two) new fully paid-up Equity Shares of Rs. 2/- (Rupees Two Only) each for every 1 (One) existing fully paid-up Equity Share of Rs. 2/- (Rupees Two Only) to the eligible Equity Shareholders of the Company as on record date, subject to approval of the Shareholders of the Company, by capitalization of capital redemption reserve and / or securities premium and / or general reserve," said Patanjali Foods in a stock exchange filing on Thursday.

To raise the paid-up share capital from Rs 72.5 crore comprising 36,25,06,314 shares to Rs 217.5 crore comprising 108,75,18,942 shares, a total of about 72.5 crore equity shares with a face value of Rs 2 apiece are planned to be issued as bonus shares.

The corporation has determined that in order to effectuate this bonus issue, Rs 145 crore will need to be taken out of its reserves. The firm has enough reserves as per the most recent audited financial statement, which was dated March 31, 2025: Rs 418.16 crore for the general reserve, Rs 4,704.38 crore for the securities premium, and Rs 266.93 crore for the capital redemption reserve.

On or before September 16, 2025 is the estimated date by which such bonus shares would be credited/dispatched to the eligible shareholders as per Patanjali Foods whereas the record date for the purpose of the same will be declared in due course of time.

Patanjali Foods Share Price Target

"The Relative Strength Index (RSI) is at 80.37, indicating the stock has entered the overbought territory. In such conditions, short-term traders are advised to wait for a pullback before initiating fresh positions. However, any pullback should be viewed as a buying opportunity, as the overall momentum remains strong. Technically, PATANJALI has reclaimed and sustained above all its key moving averages, reinforcing the positive structure," said Hardik Matalia - Derivative Analyst at Choice Broking.

"On the downside, key support lies near the lower band of the consolidation range. If the stock manages to retest or break above the upper range, further upside targets could unfold. Long-term investors holding the stock can continue to stay invested as long as it trades above the crucial support level of ₹1,550. In the broader bullish context, buying on dips remains a favorable strategy, backed by strong technical indicators," the analyst further recommended.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.