Shares of Adani Wilmar hit an upper circuit of 5 per cent in early trade today after falling for eight straight sessions. Adani Wilmar stock opened 5 per cent lower at Rs 554.10 on BSE. However, it hit upper circuit of 5 per cent, rising to Rs 612.40.
Market cap of the firm rose to Rs 79,592 crore. Total of 4.03 lakh shares of the firm changed hands amounting to a turnover of Rs 23.15 crore on BSE.
The stock has gained 6.08 per cent in a month but lost 14.4 per cent in a week. The large-cap stock trades higher than 50-day, 100-day, and 200-day moving averages but lower than 5-day and 20-day moving averages.
Before today’s session, Adani Wilmar stock had lost 30.61 per cent in the last eight sessions. It slipped by Rs 295 or 33.59 per cent from its all-time high hit on April 28, 2022.
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On April 28, the stock hit an all-time high of Rs 878.35, zooming a massive 297.44 per cent compared to its listing price of Rs 221 on February 8. The company made a muted market debut on February 8. Shares of Adani Wilmar listed at Rs 221, a 3.91 per cent discount to their IPO issue price on BSE. The issue price of the IPO stood at Rs 230. The firm offered its shares in a price band of Rs 218-Rs 230.
Brokerage KRChoksey has initiated coverage on Adani Wilmar and sees over 20 per cent upside from the current level. The brokerage firm said that the company’s raw material sourcing capabilities are supported by extensive business networks.
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It imports 70 per cent of its raw materials, and its market leadership has facilitated to source raw materials from top global suppliers from the international markets.
Also, Wilmar International is the largest palm oil supplier in the world and provides it with an additional competitive edge as it need not depend on third-party suppliers for sourcing palm oil.
“We believe AWL’s focus on the growth of FMCG and Packaged food business and shift to value-added products will result in increased market share and expansion of margins,” KRChoksey said.
“Currently, revenue contribution from value-added products is negligible but the management expects it to be meaningful in the medium term, it added.
Adani Wilmar Q4 results: Net profit falls 26% YoY to Rs 234 cr, revenue jumps 40%
“Further, the company paid off its long-term debt from IPO proceeds. AWL has been able to generate strong cash flow which along with a reduction in debt will further, strengthen its balance sheet,” the brokerage firm added.
On May 2, Adani Wilmar clocked a 26 per cent fall in net profit at Rs 234.3 crore for the quarter ended March 31, 2022 against a net profit of Rs 315 crore in the year-ago period.
However, the company reported a 40 per cent YoY rise in its consolidated revenue from operations to Rs 14,960.4 crore in Q4 against Rs 10,672 crore in the corresponding quarter of last fiscal. In its earnings update, Adani Wilmar said, “The Russia-Ukraine war has hit sunflower oil consumption which has fallen 50 per cent as Ukraine is the largest supplier of sunflower to the world.”
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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, which is the largest selling edible oil brand in India.