- Supreme Court orders Patanjali Ayurved to stop ads claiming disease cures
- Patanjali Foods clarifies SC ruling doesn’t apply to them
- The stock price of Patanjali Foods drops after the court decision
The Supreme Court made a decision in an ongoing argument with the Indian Medical Association (IMA). Patanjali Foods, in a notice to the Bombay Stock Exchange (BSE), said that the Supreme Court’s decision doesn’t concern them.
Patanjali Foods’ stock dropped by 10.58% from its highest price in a year, which was Rs 1,741. On Wednesday, the shares fell by 3.91% to reach a low price of Rs 1,556.80.
This drop happened because the Supreme Court said that Patanjali Ayurved can’t advertise its traditional ayurvedic medicines as curing diseases. Patanjali Foods, earlier known as Ruchi Soya, is a part of Patanjali Ayurved, which was founded by yoga teacher Ramdev.
The Supreme Court’s decision was part of an ongoing dispute with the Indian Medical Association (IMA). The IMA accused Patanjali of putting down other types of traditional medicines.
The court said that Patanjali broke its promise from last year when it assured the judges it wouldn’t publish ads claiming its medicines have medicinal effects casually.
Patanjali Foods, in its notice to BSE, said, “The Supreme Court’s remarks don’t concern Patanjali Foods Ltd, which is a separate listed company dealing only with edible oil and food FMCG products.”
The company added that the court’s remarks won’t affect its regular business or financial performance.
With the stock price at Rs 1,556.80, it’s down by 10.58% from its highest price of Rs 1,741 in the past year, which it reached on February 16.
“Buying more stocks at this price isn’t a good idea. Those who have them should set a strict stop loss at Rs 1,500,” said Kiran Jani, Head of Technical Research at Jainam Broking, on Business Today TV.
As of December 2023, the company’s promoters owned 73.82% of the shares.