Shares of Kishore Biyani-led Future group companies rallied up to 20 per cent in Friday's trade after the company announced a tieup with Baba Ramdev's Patanjali for exclusive rights on a wide range of products that the ayurvedic company produces. Future Retail soared 7.36 per cent to hit a high of Rs 144.40 on BSE. Future Retail's DVR spurted 20 per cent to a high of Rs 129.65. Future Consumer Enterprise's stock jumped 13.49 per cent to a high of Rs 18.50.
Two other group company stocks, Future Lifestyle Fashions (up 5.4 per cent) and Future Market Networks (20 per cent), also witnessed substantial gains. The stock exchanges sought a clarification from the group companies on the report. Patanjali's revenue grew at an extraordinary pace - a CAGR of 64.7 per cent over FY12-15 - which has made some brokerages get excited about the company.
But Patanjali maintains that it has no plan so far to get listed on stock exchanges. According to a recent report by CLSA, Patanjali is bigger than Emami and Jyothy Labs and is "perhaps the fastest growing fast moving consumer company in India with revenues in excess of Rs 2,500 crore for 2014-15.
" Edelweiss Securities in a note this week said, "Patanjali boasts of a strong pipeline of new products. The products are not only innovative, but reasonably priced too. A central R&D facility equipped with latest technology along with a separate new product department has helped it line up a series of new launches over next few months." The new pipeline of launches includes Patanjali Noodles, Dant Kanti Advance, Sugar free Chyawanprash, PowerVita, Seabuck thorn dietary supplement and powdered hair dye, among others, it pointed out