Adani Wilmar stock joins market rally and jumps more than 4%

Shares of Adani Wilmar were trading higher amid a rally in broader equity indices today. Shares of Adani Wilmar opened 2.96% higher at Rs 599 on BSE. The company’s market capitalization has risen to Rs 78,357 crore. The stock hit an intraday high of Rs 608.9, up 4.66% from the previous close of Rs 581.80.

A total of 2.11 lakh shares in the company changed hands, representing turnover of Rs 12.62 crore on BSE. The title lost 5.74% in one month and fell 7.16% in one week.

Adani Group stock is trading above the 50-day, 100-day and 200-day moving averages, but below the 5-day and 20-day moving averages. The stock closed down 1.22% in the previous session.

Read also : Adani Wilmar shares resume their correction and fall 4% at the start of the transaction

In the meantime, BSE has placed the stock under the Additional Monitoring Measures (MSA) list. Stocks that are under watch due to price change, volatility, volume change are included in the list. Adani Wilmar stock is down 30.67% or Rs 269.45 from its record high of Rs 878.30 reached on April 28, 2022 from its listing price of Rs 221 on February 8.

Before hitting the roof, the stock had soared 297.44% from its listing price of Rs 221 on February 8. The company made its muted market debut on February 8. Shares of Adani Wilmar are listed at Rs 221, or 3.91% discount on their IPO issue price on BSE. The issue price of the IPO stood at Rs 230. The company offered its shares in a price range of Rs 218 to Rs 230.

Brokerage KRChoksey initiated a hedge on Adani Wilmar and sees over 20% upside from the current level. The brokerage firm said the company’s raw materials sourcing capabilities are backed by extensive trading networks. It imports 70% of its raw materials and its market leadership has facilitated the sourcing of raw materials from major global suppliers in international markets.

Additionally, Wilmar International is the largest palm oil supplier in the world and provides it with an additional competitive advantage as it does not need to depend on third party suppliers for palm oil supply.

“We believe AWL’s focus on growing the consumer packaged goods and packaged food business and moving into value-added products will result in increased market share and margin expansion,” said KRChoksey.

On May 2, Adani Wilmar reported a 26% decline in net profit to Rs 234.3 crore for the quarter ended March 31, 2022 from a net profit of Rs 315 crore a year ago. However, the company reported a 40% year-on-year increase in consolidated operating revenue to Rs 14,960.4 crore in the fourth quarter from Rs 10,672 crore in the corresponding quarter last fiscal.

Adani Wilmar Ltd is a joint venture between Adani Group and Wilmar Group of Singapore. It is engaged in the manufacture of edible oil, wheat flour, rice, pulses and sugar. The company also owns the popular brand Fortune, which is the top selling edible oil brand in India.

Meanwhile, the Indian market looked set to close in the green today after five losing sessions. Sensex was trading 665 points higher at 53,595 and Nifty jumped 220 points to 16,028 in the afternoon session.

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