Shares of Adani Wilmar plunged for the third straight session today with the Adani Group firm reporting a weak set of earnings in Q2.Adani Wilmar stock slipped up to 2.26 per cent to Rs 667.05 in the afternoon session today amid highly volatile broader market. A total of 4.10 lakh shares of the firm changed hands amounting to a turnover of Rs 27.74 crore on BSE. Market cap of the firm stood at Rs 89,118 crore on BSE.┬а
Adani Wilmar stock is trading higher than the 100 day and 200 day moving averages but lower than 5 day, 20 day and 50 day moving averages. The share hit a high of Rs 878.35 on April 28, 2022. Considering the current market price, the stock has lost 21.83 per cent from the yearly high.┬а
ALSO READ: Adani Wilmar shares fall after Q2 net profit tanks 73%┬а
The Adani Group firm reported a 73 per cent fall in net profit for the quarter ended September on Thursday. Net profit slipped to Rs 49 crore against Rs 182 crore profit in the second quarter of the previous fiscal. ┬аHowever, revenue rose 5% to Rs 14,209 crore in Q2 against Rs 13,584 crore in the September quarter of the previous fiscal.┬а
Commenting on the prospects of the stock post Q2 earnings, Pavitraa Shetty from Tips2trades said, “Despite below average results where profit has dropped considerably, Adani Wilmar still holds in the positive territory due to strong brand name. Technically, 665 remains immediate support. Investors can buy either if daily close is above 730 or on a strong fall till 610-625 for stellar returns in the coming months.”
Adani Wilmar said it witnessed ┬аmultiple ┬аheadwinds ┬аon ┬аthe ┬аmargin ┬аfront, ┬аwith ┬аa high volatility ┬аin ┬аedible ┬аoil ┬аprices, ┬аallotment ┬аof ┬аlower ┬аTRQ ┬а(Tariff ┬аRate ┬аQuota) ┬аand inflation impact on its operating expenses. The quarter saw multiple headwinds in the edible oil segment.┬а
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Prices of palm oil, soyabean oil and sunflower declined during the quarter due to macro factors affecting the demand-supply situation in edible oils.The sharp fall in prices left most of the players with high price inventory in hand.┬аThis ┬аcoupled ┬а with ┬а currency ┬а depreciation affected margins during the quarter, the Adani Group firm said in an earnings release on Thursday.
Adani Wilmar Ltd is a joint venture between Adani Group and Wilmar Group of Singapore. It is engaged in the manufacturing of edible oil, wheat flour, rice, pulses, and sugar. The company also owns the popular brand Fortune.
