Adani Wilmar shares slumped 51% in 2023 so far to hover near one-year low; here's what analysts say

Shares of Adani Wilmar Ltd have lost more than half of their value on a year-to-date (YTD) basis. Considering Monday's closing price of Rs 295.25, the stock has plunged 51.12 per cent in 2023 so far and 13.56 per cent in a month to hover around its one-year low price. The counter was up just 0.94 per cent from its 52-week low of Rs 292.50, hit a couple of sessions back on November 10, 2023.

The recent fall in the share price came after it was reported that Adani Group is reportedly in talks with multiple multinational consumer goods companies to sell its entire stake of 43.97 per cent in Adani Wilmar.

DRS Finvest founder Ravi Singh said Adani Wilmar's counter has declined amid the disinvestment report. "The stock looked weak on daily charts and may see Rs 280 level in the near term," Singh mentioned.

AR Ramachandran from Tips2trades said, "Adani Wilmar is sideways to bearish but also oversold on daily charts with strong resistance at Rs 312. Investors should buy only if a daily close is above resistance of Rs 312. Next support will be at 289."

The counter traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 28.24. 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 153.94 against a price-to-book (P/B) value of 4.88.

The scrip has an analyst target price of Rs 390, Trendlyne data showed, suggesting a potential upside of 32 per cent in a year. It has a one-year beta of 0.59, indicating low volatility on the counter.

Adani Wilmar recently clocked a consolidated net loss of Rs 131 crore for September quarter, hurt by losses edible oil segment. This was against a profit of Rs 49 crore in the year-ago quarter.

Revenue for the Adani Group firm had also fallen 13 per cent year-on-year (YoY) to Rs 12,267 crore for the said quarter compared with Rs 14,150 crore in the same quarter last year.

As of September 2023, promoters held 87.94 per cent stake in the company.

Meanwhile, Indian equity benchmarks are closed today on account of Diwali Balipratipada. Trading action will resume on Wednesday at the usual time.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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