Adani Wilmar’s Stock Falls 26% From Its All-Time High: Time To Buy, Sell Or Hold?


Shares of Adani Wilmar were trading higher for the second consecutive session today in a broader and weaker market. Adani Group’s stock, which has mostly traded above the 600 rupees level since mid-May, gained as much as 4.59% to hit 649.45 rupees in early trading today.

Shares of Adani Wilmar closed up 4.93% at Rs 620.90 in the previous BSE session. The stock, which closed at Rs 591.75 on June 13, climbed 9.75% or Rs 57.7 over the next two sessions. However, large-cap stocks are down 26% from a record high of Rs 878.35 on April 28, 2022.

Adani Wilmar is trading above the 100-day and 200-day moving averages, but below the 5-day, 20-day and 50-day moving averages. In one month, the title gained 8.71%.

A total of 0.41 lakh shares of the company changed hands, representing turnover of Rs 2.62 crore on BSE. The company’s market cap rose to Rs 84,366 crore on BSE.

READ ALSO : Adani Wilmar releases two Fortune Poha variants on World Poha Day

With two days of gain in a falling market, here’s a look at what the experts had to say about the stock’s outlook.

Manoj Dalmia, Founder and Director, Proficient Equities:

Shares of Adani Wilmar hit the 5% upper circuit in a volatile trading session on Tuesday, but investors shouldn’t get caught up in these little hiccups as it won’t last long. key support areas to buy opportunities and avoid falling into traps Prospects are bright in the long term due to its robust value chains, the edible oils sector is expected to grow at a rate of 10% over the next two years. In addition, it is entering several vertical markets like basmati rice recently under the Fortune brand. In the short term, the main challenge will be increased cost pressure and inflationary concerns. Investors can accumulate this stock at the level of Rs 543 . “

Actions in the news: HUL, Asian Paints, IDBI Bank, PNB Housing, etc.

Ravi Singh, Vice President and Head of Research, Share India:

“Adani Wilmar’s stock held well above strong support at Rs 580 levels and rebounded strongly. The global stock market may be facing the heat of war between Ukraine and Russia. Russia, but rising commodity prices, particularly the price of palm oil, are giving a margin advantage to AWL’s unsold inventory and will further strengthen the company’s balance sheet. overall market and will approach the target of Rs 700-Rs 740 levels in the short term.

Currently, Adani Wilmar stock is trading 193.86% higher than its IPO price this year.

The company made its muted market debut on February 8. Shares of Adani Wilmar were listed at Rs 221, a discount of 3.91% from their issue price on BSE. The issue price of the IPO stood at Rs 230. The company offered its shares in a price range of Rs 218 to Rs 230.

In mid-May, ICICI Securities initiated a hedge on Adani Wilmar stock with a ‘Hold’ rating and a target price based on SoTP of Rs. 550, 24E (including the impact of the Bangladesh acquisition).

“In FY23E, we expect volume growth of 11% with some benefit from the full year consolidation of Bangladesh – we note that operations in Bangladesh are primarily in the edible oils segment. For FY24E, we expect 9.0% volume growth in the edible oils business,” he said.

ICICI Securities said strong competitive advantages (price scale, oil segments, scale, market intelligence (courtesy Wilmar) in edible oil will give Adani Wilmar an edge over the competition.

On May 2, Adani Wilmar announced a 26% decline in net profit to Rs 234.3 crore for the quarter ended March 31, 2022 from a net profit of Rs 315 crore for the prior year period. However, operating revenue soared 40% year-on-year to Rs 14,960.4 crore in the fourth quarter from Rs 10,672 crore in the corresponding quarter last fiscal year.

Adani Wilmar Ltd is a joint venture between Adani Group and Wilmar Group of Singapore. It is engaged in the manufacture of edible oil, wheat flour, rice, pulses and sugar. The company also owns the popular brand Fortune, which is the top selling edible oil brand in India.

Read also : Adani Wilmar’s stock down 25% from record high, will it slip below Rs 600?


About Author

Comments are closed.