Adani Wilmar stock falls after six days, hits 5% lower circuit

Shares of Adani Wilmar fell 5 per cent today amid volatile sentiment in the broader indices. Adani Wilmar stock opened 4.91 per cent higher at Rs 772.90 today against the previous close of Rs 736.70.  However, the Adani Group stock turned red and slipped 5 percent to Rs 699.90 on BSE.

The stock has fallen after six days of consecutive gain.  At 1:05 pm, the stock was trading 3.62 percent lower at Rs 710 on BSE.

Market cap of the firm fell to Rs 92,277 crore. A total of 8.57 lakh shares of the firm changed hands amounting to a turnover of Rs 61.89 crore on BSE. The stock has lost 3.32 per cent in a month but risen 16.12 per cent in a week. Adani Wilmar stock is trading higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages.  

Last week, ICICI Securities initiated coverage on the Adani Wilmar stock with a 'Hold' rating and an SoTP-based target price of Rs 550.

The brokerage expects the edible oil business to witness a 10 per cent volume growth CAGR over FY22-24E (including the impact of the Bangladesh acquisition).

ALSO READ: After being acquired by the Adani Group, is Ambuja-ACC merger the next stop?

"In FY23E, we expect volume growth of 11 per cent with some benefit of full-year consolidation of Bangladesh - we note Bangladesh operations are mainly in the edible oil segment. For FY24E, we expect volume growth of 9.0 per cent in the edible oil business," it said.

ICICI Securities said strong competitive advantages (price-laddering, oil segments, scale, market intelligence (courtesy Wilmar)) in edible oil will provide Adani Wilmer with an edge over the competition.

Meanwhile, BSE has placed the stock under the Additional Surveillance Measures (ASM) list. Those stocks which are under surveillance due to price variation, volatility, and volume variation are included in the list.

ALSO READ: ICICI Securities initiates coverage on Adani Wilmar! Here's all you need to know

Adani Wilmar stock has lost 19.16 per cent or Rs 168.3 from its record high of Rs 878.30 hit on April 28, 2022 compared to its listing price of Rs 221 on February 8.  

Before hitting the roof, the stock had rallied a massive 297.44 per cent compared to its listing price of Rs 221 on February 8. The company made a tepid market debut on February 8. Shares of Adani Wilmar listed at Rs 221, a 3.91 per cent discount to their IPO issue price on BSE. The issue price of the IPO stood at Rs 230. The firm offered its shares in a price band of Rs 218-Rs 230.

On May 2, Adani Wilmar reported a 26 per cent fall in net profit at Rs 234.3 crore for the quarter ended March 31, 2022 against a net profit of Rs 315 crore in the year-ago period. However, revenue from operations climbed 40 per cent YoY to Rs 14,960.4 crore in Q4 against Rs 10,672 crore in the corresponding quarter of last fiscal.  

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, which is the largest selling edible oil brand in India.  

Meanwhile, Sensex and Nifty were trading on a mixed note today. Sensex rose 12 points to 54,300 and Nifty lost 39 points to 16,175 in the afternoon session.