Why Ruchi Soya Share Price Is Nosediving? Analysts List Out These Reasons
Ruchi Soya share price has been under sell-off heat for last one week. However, the stock hit lower circuit on Wednesday after the central government’s announcement to exempt customs duty and agri cess on yearly import of 20 lakh MT each of crude soyabean and sunflower oil till March 2024 to cap domestic prices. According to stock market experts, this announcement has worked as immediate trigger for Ruchi Soya share price tumble but other reasons like rising input cost and weak Q4 results are also one of the reasons for sudden tank in Ruchi Soya shares.
Speaking on Ruchi Soya share price outlook, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Ruchi Soya shares are nosediving after central government’s decision to exempt customs duty and agri cess on yearly imports of crude soyabean and sunflower oil till March 2024. This is expected to bring down edible oil prices in domestic market and hence Dalal Street has gone down bearing on the stock. However, if we look at the quarterly numbers of the stock, it is not on the expected lines of market observers and hence the stock is expected to remain under sell-off heat for few more sessions.”
Echoing with Avinash Gorakshkar’s views, Anuj Gupta, Vice President — Research at IIFL Securities said, “In last few months, due to high inflation, input cost of edible oil makers have gone higher and hence in the wake of lowering edible oil prices, market is expecting that Ruchi Soya’s quarterly numbers are expected to remain under pressure in upcoming quarters as well.”
Anuj Gupta of IIFL Securities said that those who have Ruchi soya shares in their stock portfolio can hold the stock with stop loss at ₹940 levels. He said that festival season is expected to start in next 2-3 months and there can be trend reversal in the stock after rise in demand due to the beginning of festive season.
Ruchi Soya share price hit 5 per cent lower circuit on third successive session on Wednesday and closed at ₹1044.10 per share levels on NSE. In last one week, this FMCG stock has tumbled more than 13 per cent.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.