Adani Wilmar stock falls 3% after firm cuts cooking oil price

Shares of Adani Wilmar fell over 3 per cent today after India's largest edible oil producer slashed the maximum retail price of cooking oil prices by up to Rs 30 per litre amid a fall in global prices.

Adani Wilmar stock fell up to 3.42 per cent to Rs 602 against the close of Rs 623.30 in the previous session. Adani Wilmar shares trade higher than the 20-day, 100-day and 200-day moving averages but lower than 5-day and 50-day moving averages.

A total of 0.45 lakh shares of the firm changed hands amounting to a turnover of Rs 2.72 crore on BSE. The market cap of the firm fell to Rs 79,371 crore on BSE.

At 11:46 am, Adani Wilmar shares were trading 2.13 per cent lower at Rs 610.05.

Also read: Adani Wilmar cuts prices of edible oil by up to Rs 30 per litre

The company has carried out the maximum reduction in soyabean oil. The stocks with new prices will reach the market soon.

On February 7, Mother Dairy, which sells edible oils under the Dhara brand, cut prices of soybean and rice bran oils by up to Rs 14 per litre.

The food ministry had called a meeting on July 6 to discuss edible oil prices and directed edible oil firms to pass on the benefits of a fall in global cooking oil prices to consumers.

"In continuation to the global price reduction and the government's effort to pass on the benefits of reduced edible oil prices to consumers, Adani Wilmar has further slashed edible oil prices from the last month's reduction effected by the company," a company statement said.

Meanwhile, the Adani Wilmar stock has lost 30 per cent compared to the record high till date on profit-booking, Q4 earnings effect, and Indonesia lifting ban on the palm oil exports.

The stock hit a record high of Rs 878.35 on April 28, 2022. The stock made a subdued listing in the market at Rs 221 on February 8, 2022 against the IPO issue price of Rs  230.

The Adani Group firm reported a 25.6 per cent year-on-year decline in its consolidated net profit for the quarter ended March 2022.

The firm reported a profit of 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, the company clocked a 40 per cent YoY rise in its consolidated revenue from operations to Rs 14,960.4 crore in Q4 against Rs 10,672 crore in the same quarter 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.