Adani Wilmer fall and rise

Adani Wilmar’s stock again on the rise after drop from record high

On February 8th, Adani Wilmar shares was get listed at Rs.227 per share, down from its IPO price of Rs.230 per share. Following this event, on April 28th, the stock price climbed to a record high of Rs.878 per share which is 52 week of the stock. In comparison to its intraday high, today’s price of this stock is down by around Rs.180 per share.

The Adani Group, a media mainstay, is once again in the spotlight, but for a very different cause than before. The company’s shares rises today by 0.24% on the NSE on 20th October 2022. Adani Wilmar Shares made low of Rs.568 per share on dated 13th May 2022 after touching 52 week high on 28th April 2022.

Since it was first listed on the public markets on February 8 of this year, shares of Adani Wilmar have soared. The supply and demand for edible oil were negatively impacted by the rising cost of living during the Ukraine-Russia conflict. Thereafter, JP Morgan published a study that marked the beginning of Adani Wilmar’s downfall. Let’s take a look at what JP Morgan said in its most recent report to determine the root cause of the stock market’s recent downturn.

A drop in share price

According to a research by JP Morgan, Adani Wilmar’s risk-reward ratio is no longer preferable. Consequently, it was downgraded to the lowest possible status—underweight. Although the research indicated that the company’s commercial prospects were solid in the long run, JP Morgan lowered its share price estimate to Rs.525. Due to the substantial increase in value following the offering, the price per share is now rather high. The risk-reward of the firm is no longer favorable because its expected price-to-earnings ratio for FY2024 has climbed to about 70 times.

The stock price movement of Adani Wilmar

  • Rs 878 is the 52-week high

Adani Wilmer Limited Stock Performance

Now it is trading at Rs.697.90 per share on dated 20th October 2022.

What percentage of the shares of this firm do you own?

Adani Wilmar was founded by the Adani Group of India and the Wilmar Group of Singapore. Each group owns exactly half of the total. Adani’s Wilmar Fortune brand is widely known in India for its edible oil, wheat, gram flour, rice, pulses, sugar, and packaged food products.

Decreased revenue

The company’s IPO in January brought in $3.60 billion. In the last three months of the fiscal year 2021-22, Adani Wilmar saw its earnings drop by 26%, to Rs.219 crore. The corporation says that increased tax burden is to blame for the decline in earnings. However, the company’s operating income rose by 40 percent to Rs.14,960 crore during this time.

Adani Wilmar has purchased the Kohinoor and Charminar basmati rice brands. This firm has overtaken Hindustan Unilever as the country’s most profitable FMCG manufacturer. Brokerage firm JP Morgan believes this purchase would help the business solidify its leadership position in the premium basmati rice industry.

Results of a tallied vote counted as

Since Adani Wilmar has such a robust business network, the brokerage firm is confident in its ability to maintain a steady supply of raw materials. The majority of the raw materials used by the firm are brought in from other countries, but because to the company’s strong position in the market, it is able to negotiate favourable prices with the best suppliers throughout the world.

Now that he owns the Kohinoor rice brand, Gautam Adani can bring his business all the way to your dinner table.

Fourth-quarter earnings for FY 2021-22 for Gautam Adani’s firm dropped 26%, despite higher revenue.

Adani Wilmar, according to KR Choksey, is totally committed to expanding its fast-moving consumer goods (FMCG) and packaged food operations. Value-added items will help the firm gain market share and boost profits. The proceeds from the IPO were used to settle the company’s debt. The company’s balance sheet will be bolstered by its high cash flow generation potential and its decreasing debt.

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