Shares of Adani Group's FMCG firm Adani Wilmar Ltd have lost 45% in two years, leaving long-term investors worried about the outlook of the stock. The stock, which closed at Rs 676 on September 2, 2022 was trading at Rs 372 in the current session on BSE. Adani Wilmar shares were trading nearly a percent higher at Rs 373 on Wednesday against the previous close of Rs 369.60 on BSE. The FMCG stock has risen 6% in the last one year and lost 0.53% in six months. The Adani Group stock hit a record high of Rs 878.35 on April 28, 2022. It touched a 52 week high of Rs 285.85 on November 20, 2023.
In terms of price action, Adani Wilmar shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
In the current session, market cap of the firm stood at Rs 48,549 crore.
Total 0.73 lakh shares changed hands amounting to a turnover of Rs 2.70 crore on BSE. Adani Wilmar stock has a one-year beta of 0.9, indicating average volatility during the period.
Deven Choksey Research has a price target of Rs 410 with an accumulate rating on the stock.
The brokerage said Q1FY25 revenue was largely in line with its estimates, but EBITDA/Adjusted profit after tax exceeds its estimates significantly on the back of a notable increase in volumes in both segments, Edible Oil and Foods.
The company’s edible oils and food & FMCG segments achieved record profitability and growth. With strong volume growth and capacity expansion, the Company is well-positioned for continued success and market share gains, it added.
SMC Global expects a 12% upside in the stock. It has a buy call with a price target of Rs 422.
"According to the management, it has been meticulously expanding its processing capacities and increasing the distribution of its products. It is making steady investments in its key brands and building deeper connections with consumers. It is executing well on its strategy and has been gaining market share across consumer products. It is also implementing regional strategies such as differential pricing, offering regional product varieties, and deepening market penetration in local regions. Thus, the stock is expected to reach a price target of Rs 422 in 8 to 10 months," said the brokerage.
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.