Adani Wilmar stock hits upper circuit, rises after five days

Shares of Adani Wilmar hit upper circuit of 5 per cent in a volatile trading session today. Adani Wilmar stock rose 5 per cent to an intraday high of Rs 621.3 against the previous close of Rs 591.75 on BSE. The Adani Group stock has gained after five days of consecutive fall. The stock also touched an intraday low of Rs 576.55, down 2.57 per cent on BSE.

Adani Wilmar trades higher than 100-day and 200-day moving averages but lower than 5-day, 20-day and 50-day moving averages. In a month, the stock has gained 8.71 per cent.

A total of 3.06 lakh shares of the firm changed hands amounting to a turnover of Rs 18.74 crore on BSE. Market cap of the firm rose to Rs 80,255 crore on BSE.

The share hit a high of Rs 878.35 on April 28, 2022. Considering the current market price, the stock has lost over 29 per cent till date.

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However, it is till trading 181.13 percent higher to its IPO listing price this year.

The company made a muted 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.

In mid-May, ICICI Securities initiated coverage on the Adani Wilmar stock with a 'Hold' rating and a 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).

"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.

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

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.