Adani Wilmar's shares fell 5 per cent today amid volatile sentiment in the broader indices. Adani Wilmar stock was at Rs 772.90 on Friday, a 4.91 per cent increase from the previous close of Rs 736.70. The Adani Group stock fell 5 percent to Rs 699.90 on the BSE.
The stock has fallen after six days of continuous gain. The stock was trading 3.62 percent lower at Rs 710 on the BSE at 1: 05 pm.
The firm's market cap fell to 92,277 crore. A total of 8.57 lakh shares of the firm changed hands on the BSE to have a turnover of Rs 61.89 crore. The stock has lost 3.32 per cent in a month, but has gone up 16.12 per cent in a week. Adani Wilmar stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
A week ago, ICICI Securities started coverage on the Adani Wilmar stock with a 'Hold' rating and a SoTP-based target price of Rs 550.
The food business is expected to see a 10 per cent growth CAGR over FY 22 -- 24 E including the impact of the Bangladesh acquisition ALSO READ: After being acquired by the Adani Group, is the merger of Ambuja-ACC the next stop?
In FY 23 E, we expect volume growth of 11 per cent with the benefit of full-year consolidation of Bangladesh -- we note that Bangladesh operations are mainly in the edible oil segment. Volume growth of 9.0 per cent in the edible oil business is forecast for FY 24 E, it said.
ICICI Securities said strong competitive advantages, price-laddering, oil segments, scale and market intelligence courtesy of Wilmar in edible oil will give Adani Wilmer an edge over the competition.
The stock is on the Additional Surveillance Measures ASM list, according to the BSE. The stocks that are under surveillance due to price variation, volatility, and volume variation are included in the list.
ALSO READ: ICICI Securities initiates coverage on Adani Wilmar! Adani Wilmar stock has lost 19.16 per cent or Rs 168.3 from its record high of Rs 878.30 hit on April 28, 2022 compared to its listing price of Rs 221 on February 8.
The stock had rallied a massive 297.44 per cent compared to its listing price of Rs 221 on February 8. The company made a tepid market debut on February 8. Adani Wilmar's shares are listed at Rs 221, a 3.91 per cent discount to their IPO issue price on the BSE. The issue price of the IPO was Rs 230. The firm offered its shares in a price band of Rs 218 -- Rs 230.
On May 2, Adani Wilmar reported a 26 per cent decline 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. Revenue from operations went up by 40 per cent YoY to Rs 14,960. In Q 4 there was 4 crore against Rs 10,672 crore in the corresponding quarter of last fiscal.
Adani Wilmar Ltd is a joint venture between the Adani Group and the Wilmar Group of Singapore. It is involved in the production 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.
Sensex and Nifty were trading on a mixed note today. Sensex rose 12 points to 54,300 and Nifty lost 39 points to 16,175 in the afternoon session.