Shares of Adani Wilmar Ltd fell sharply on Monday, extending their fall for the sixth straight session. The stock slumped 5 per cent to settle at its lower circuit level of Rs 344.20 over a previous close of Rs 362.30. The counter has declined 21.41 per cent in six days. At today’s closing price of Rs 344.20, the scrip is just 2 per cent shy away from its 52-week low of Rs 337.45, hit on March 7 last year.
That said, the counter has lost 43.02 per cent on a year-to-date (YTD) basis. Since January 24 this year, Adani stocks took a major hit after US-based short seller Hindenburg Research alleged that the Gautam Adani-led Indian conglomerate had engaged in stock manipulation and accounting fraud scheme over the last few decades. Adani Group, however, refuted the claim as baseless. Following a brief halt, the Adani stock rout resumed last week.
The scrip had scaled its 52-week high of Rs 878.35 on April 28, 2022. However, it needs to be pointed out that barely a month back that year, the share price of Adani Wilmar was at its one-year low. In other words, the stock had swung by a whopping 160.29 per cent higher from its respective 52-week low and high levels.
On the earnings front, the edible oil major reported a 16 per cent increase in its consolidated profit to Rs 246.11 crore for the third quarter that ended December 2022 against Rs 211.41 crore in the year-ago period.
Ravi Singh, Vice-President and Head of Research at Share India, said, “Adani Wilmar’s stock is under freeze due to continuous selling in the counter. It could witness some more selling pressure amid an overall weakness in the Adani Group. In the current scenario, the stock may touch Rs 310 in the near term.”
AR Ramachandran from Tips2trades said, “Adani Wilmar looks bearish and a close below daily support of Rs 360 could lead to a target of Rs 272 in the near term. Strong resistance will be at Rs 387.”
The stock traded lower than 5-day, 20-, 50-, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 27.83. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a negative price-to-equity (P/E) ratio of 64.27.
Yet, Adani Wilmar has an average target price of Rs 637.67, Trendlyne data showed, suggesting a potential upside of 85.13 per cent. The scrip has a one-year beta of 1.12, indicating high volatility.
Meanwhile, Indian equity benchmarks traded lower today, extending their losing run for the seventh straight session. The domestic indices were dragged by metals, technology and automobile stocks.
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