Adani Wilmar stock tumbles 4% ahead of Q4 earnings

Shares of Adani Wilmar fell in early trade ahead of the Adani Group's firm March quarter earning set to be announced today. Adani Wilmar stock declined 4 percent to Rs 749 against the previous close of Rs 780.25 on BSE. The large cap stock opened at Rs 755.50.   

Market cap of the firm fell to Rs 1,00,751 crore. Total 0.70 lakh shares of the firm changed hands amounting to a turnover of Rs 5.39 crore.

The stock hit all-time high of Rs 878.35 on April 28, 2022. The stock has fallen in the last two consecutive sessions. Till date, the stock has lost 14.72 per cent from its all-time high.

AR Ramachandran, Co-founder & Trainer, Tips2Trades said, "After a stellar three months, where Adani Wilmar has given multi-bagger returns post listing, a decent price correction was expected. Technically, the stock is still overbought and a daily close below Rs 750 could trigger a good correction till Rs 600- Rs 625 levels in the near term."

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Domestic brokerage Edelweiss Research in the middle of April said the stock's bull-run may come to an end. It had initiated coverage on the stock with 'hold' and a target price of Rs 559 over the next 12 months. Edelweiss Research said that while the company had strong growth visibility, the gains in the stock following listing suggested that they were already priced in.

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.

Adani Wilmar reported a 66 per cent year-on-year rise in its consolidated net profit at Rs 211 crore for the quarter ending December 31, 2021 against net profit of Rs 127 crore in the year-ago period.

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Revenue from operations climbed 40.5 per cent to Rs 14,379 crore in the quarter under review compared to Rs 10,229 crore in the same quarter last fiscal. FMCG revenue zoomed 46 per cent to Rs 703 crore.   

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.

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