Adani Wilmar shares down 20% in a year; should you enter at current levels?

Shares of Adani Wilmar Ltd rose 2.47 per cent in Thursday's trade to hit a high of Rs 352.80. The stock was last seen trading 1.32 per cent higher at Rs 348.85. At this price, it has slipped 19.94 per cent in the past one year.

On BSE, around 61,000 shares were seen changing hands today. The figure was lower than the two-week average volume of 1.80 lakh shares. Turnover on the counter came at Rs 2.13 crore, commanding a market capitalisation (m-cap) of Rs 45,378.28 crore.

Technical analysts largely remained mixed on the counter. Support on the counter could be seen at the Rs 335-320 zone. And, a decisive breach above the Rs 360 range is required for further upside.

"The stock is looking positive on daily charts. One can consider initiating a position in it, keeping a stop loss placed at Rs 335. Expected near-term target will be Rs 362. If the scrip breaks this target, then it has potential to see Rs 380-395 levels," Kkunal V Parar, Vice-President of Technical Research and Algo at Choice Broking told Business Today TV.

"Adani Wilmar has been consolidating at the lower zone for quite a long time with no major traction. It is advisable to stay on the sidelines. For now, support is placed around 330-320 levels and a plunge could drag it to the Rs 300 zone once again. On the higher end, strong traction could be seen above the Rs 360 range in the comparable period," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"Support will be at Rs 325 and resistance at Rs 365. A decisive close above Rs 365 level may trigger a further upside till Rs 390. The expected trading range will be between Rs 300 and Rs 400 for a month," said Jigar S Patel, Senior Manager - Technical Research at Anand Rathi Shares and Stock Brokers.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 150-day and 200-day simple moving averages (SMAs) but lower than the 100-day SMA. The counter's 14-day relative strength index (RSI) came at 56.50. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 162.27 against a price-to-book (P/B) value of 5.46. Earnings per share (EPS) stood at 2.14 with a return on equity of 3.36.

Adani Wilmar is an equal joint venture (JV) between the Adani Group and Singapore-based Wilmar. As of March 2024, promoters held an 87.87 per cent stake in the company.