Adani Wilmar shares gave negative returns in six months; buy, sell or hold?

Shares of Adani Wilmar have delivered negative returns in six months. Adani Wilmar stock fell 5.19%  during the period , leaving short term investors guessing where is the Adani Group’s FMCG major headed. On similar lines, the stock has fallen 44.58% in two years. It has delivered flat returns of 1.22% in the last one year. The stock, which has seen low volatility in a year ended on a flat note on Monday at Rs 378.20 against the previous close of Rs 377.25 on BSE.

The Adani Group stock, which hit a record high of Rs 878.35 on April 28, 2022, was trading at Rs 356 in the current session. The stock has delivered flat returns of 2% and 6% in a year and on a year-to-date basis, respectively. 

However in terms of price action, Adani Wilmar stock stands higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. It signals the stock is trading in a bullish zone in both short and long term.

In the current session, market cap of the firm stood at Rs 49,153 crore.

Total 3.67 lakh shares changed hands amounting to a turnover of Rs 13.93 crore on BSE. Adani Wilmar stock has a one-year beta of 0.9, indicating average volatility during the period. 

 SMC Global sees a 12% upside in the stock. It has a buy call with a target price 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.

Mandar Bhojane, Equity Research Analyst, Choice Broking said, "The stock has encountered selling pressure multiple times around the Rs 400 level. However, if the price sustains above the Rs 410 level, it has the potential to reach short-term targets of Rs 460 and Rs 500. Until then, it is likely to remain sideways. On the downside, immediate support is located at Rs 350, which could present a buying opportunity on dips. The Relative Strength Index (RSI) is currently at 62 and trending upward, indicating increasing buying momentum. To manage risk effectively, it is advisable to set a stop-loss at Rs 340. This measure will help protect your investment in case of an unexpected market reversal. Considering the technical analysis and current market conditions, the stock presents an appealing buying opportunity with price targets of Rs 460 and Rs 500, provided that appropriate risk management measures, such as a stop-loss at Rs 340, are in place."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 380 and resistance at Rs 410. A decisive close above Rs 410 level may trigger a further upside towards Rs 440. The expected trading range will be between Rs 440 and Rs 375 for the short term."

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.