Shares of FMCG company Patanjali Foods witnessed a 4.13 per cent dip, reaching Rs 1,555 apiece on the NSE a day after the Supreme Court (SC) issued notices to Baba Ramdev and Acharya Balakrishnan and asked why contempt proceedings should not be initiated against them for violating its orders. Patanjali Ayurved has been restrained from advertising and marketing the products meant to cure ailments-disorders till further orders.
The apex court also imposed restrictions on Patanjali, prohibiting the promotion of products that claim to cure diseases like heart ailments and asthma. The decision came in response to evidence presented by the Indian Medical Association (IMA), which included a Patanjali advertisement in The Hindu newspaper and statements made during a press conference, where the company asserted to have completely cured sugar and asthma through yoga.
However, Patanjali Foods, in a regulatory filing on the same day, said, “The observations of the Supreme Court of India do not relate to Patanjali Foods Limited, which is an independent listed entity and operates in the space of edible oil and food FMCG products only.”
It further added that the observations do not have any bearing on the regular business operations or the financial performance of Patanjali Foods.
The apex court order came on the back of an ongoing legal dispute with the Indian Medical Association (IMA), which has accused Patanjali of allegedly disparaging other forms of conventional medicines.
The court said Patanjali violated its assurance to judges last year in the ongoing case that it would not publish advertisements that make “casual statements claiming medicinal efficacy”.
The judges also asked Patanjali to explain why it should not initiate contempt of court proceedings against the company.
The Indian Medical Association (IMA) told the court that Ramdev’s firm had continued to publish newspaper ads claiming to offer a “permanent solution” for conditions, such as blood pressure, asthma, and diabetes. Patanjali sells personal care products and Ayurvedic medicines.
Over the past month, the stock has given positive returns of 1.36 per cent, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 27.13 per cent, indicating a strong upward trend.
Year-to-date, Patanjali Foods shares have surged by 2 per cent, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 72.29 per cent in the last twelve months, emphasizing its sustained growth and attractiveness to investors.
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