Shares of Adani Wilmar Ltd gained after three sessions of fall today despite weak sentiment in the broader market. However, the Adani Group stock is still trading 53% lower to the 52-week high of Rs 841.90 hit on September 23, 2022. The stock has been majorly hit by Hindernburg’s report on the Adani Group, which was released on January 24 this year. The Adani Wilmar stock has lost 6.37% since the firm announced Q4 earnings on May 3. The stock closed at Rs 415.5 on May 2 and hit a low of Rs 387.70 on BSE today.
In the current session, the stock was trading flat at Rs 389 against the previous close of Rs 390.40 on BSE. A total of 0.77 lakh shares of the firm changed hands amounting to a turnover of Rs 3 crore in the current trading session. Market cap of the firm fell to Rs 50,557 crore on BSE. Adani Wilmar shares have fallen 32.96% in a year and lost 36.69% in 2023.
In terms of technicals, the relative strength index (RSI) of Adani Wilmar stands at 41.3, signaling it's neither trading in the overbought nor in the oversold territory. The stock has a beta of 1.4, indicating very high volatility in a year. Shares of Adani Wilmar are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The share hit a 52 week high of Rs 841.90 on September 23, 2022 and a 52 low of Rs 327 on February 28, 2023.
Adani Wilmar reported a 60% fall in consolidated profit after tax (PAT) to Rs 93.6 crore for the March 2023 quarter against a net profit of Rs 234.29 crore in the corresponding quarter of the previous fiscal. Revenue from operations fell 7% YoY to Rs 13,872.6 crore in Q4 FY23 compared to Rs 14,917.2 crore in Q4 FY22.
Revenue in the last fiscal stood at Rs 58,185 crore, while profit after tax stood at Rs 582 crore.
The company crossed 5 million metric tonne of sales during FY23. Revenue from food segment doubled 2 years to close the year around Rs 4,000 crore. Both wheat flour and rice businesses crossed Rs 1,000 crore in revenue in FY23.
Here’s a look what analysts said on the outlook of the Adani Wilmar stock.
Abhijeet from Tips2trade said, "Below average Q4FY23 results has ensured Adani Wilmar stock price remains bearish with strong resistance at 420. A daily close below support of 389 could lead to targets of 365-340 in the near term."
Aamar Deo Singh, Head Advisory, Angel One expects selling pressure to continue on the Adani Wilmar counter.
“Adani Wilmar stock has been on a continuous decline since September 2022, from almost Rs 840 levels, to currently trade around Rs 400, down over 50%. The stock after making a low of Rs 327 in March 2023, has found support and appears to be forming a support base around the Rs 325-350 zone. Overall, the trend continues to remain weak for the stock, and till such time we do not see the stock trading and sustaining above the Rs 425-430 mark, selling pressure will continue, with bears holding the upper hand. The recent results also have not been encouraging, with Q4 profits down 60% YoY whereas revenue was also down 7% in Q4 YoY, clearly indicating that investors will have to tread cautiously in the stock and keep a watch on the key technical levels for any fresh price triggers,” said Singh.
Om Mehra, equity Research Analyst at Choice Broking said, “Adani Wilmar has been experiencing a downward trend in its stock prices lately. As of today, the stock is trading below 20-day, 50-day and 200-day moving averages indicating a bearish sentiment in the market. In the last one month, the stock has seen a negative return of 3.97%, while the Sensex and BSE500 indices have recorded positive returns of 3.23% and 4.55%, respectively. The delivery volume has also fallen by 24.89%, indicating weak buying interest in the stock. Stock price has been trading within a range of Rs 330-490, suggesting that the market is consolidating and accumulating the stock. However, investors should remain cautious as the stock has not shown any signs of breaking above the Rs 490 level. As of now, the stock seems to be in an accumulation phase, and we expect less movement in the coming days. We suggest waiting for a fresh entry until the stock breaks above the Rs 490 level again. In the meantime, investors should consider booking small profits over a period of time.”
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