Adani group stocks Adani Power and Adani Wilmar gained up to 5 per cent in Monday’s trade after NSE added the two stocks as constituents of a couple of stock indices. Adani Power will be part of Nifty 500, Nifty 200, Nifty Midcap 100, Nifty Midcap 150, Nifty LargeMidcap 250, and Nifty Midsmallcap 400 indices, NSE said. On the other hand, Adani Wilmar has been included in Nifty Next 50 and Nifty 100 indices. All the changes in the indices will be effective from March 31, the stock exchange added.
Shares of Adani Wilmar rose 3.91 per cent to hit a high of Rs 455.10. Adani Power, on the other hand, rose 4.99 per cent to hit a high of Rs 163. The two scrip still required up to 165 per cent rally to revisit their one-year highs.
For Adani Wilmar to revisit its 52-week high of Rs 878.35, it requires 93 per cent jump over the prevailing market price. For Adani Power to test its 52-week high of Rs 432.80, the scrip requires a 165 per cent surge over the prevailing price.
Among the two stocks, a couple of brokerages have turned positive on Adani Wilmar. KRChoksey Shares and Securities has suggested a target of 569 level for the stock. The brokerage expects Adani Wilmar to perform well diue to strong and sustainable volume growth. The Adani group company’s focus on penetration-led growth and increasing its reach is yielding results for the company, the brokerage said in a February 15 note.
“We like the company’s strategy of penetration-led growth, focus on the international market, increasing distribution reach, timely capacity addition to supporting the growth, new product launches, and acquisition of the Kohinoor brand. We expect Adani Wilmar to benefit from the recent uptick in demand,” it said.
Recently, Nuvama Institutional Equities said that Adani Wilmar competes in an extremely competitive business but it delivered strong volume growth across segments in December quarter. It cut its earning estimates for FY2-FY25 by 4.4-8.2 per cent and rolled over its estimates to FY25E with a new price target of Rs 680 from Rs 708 earlier.
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