Adani Wilmar shares slip 3% to hit one-year low price; key technical levels to watch
Adani Wilmar share price: The stock slipped 2.71 per cent to hit a one-year low price of Rs 287. At this price, the scrip has declined around 15 per cent in the past one month and 52 per cent on a year-to-date (YTD) basis.
- Nov 20, 2023,
- Updated Nov 20, 2023 2:14 PM IST
Adani Wilmar Ltd shares fell in Monday's trade, pausing their two-day upward move. The stock slipped 2.71 per cent to hit a one-year low price of Rs 287. At this price, the scrip has declined around 15 per cent in the past one month and 52 per cent on a year-to-date (YTD) basis. The recent fall in the share price came after it was reported that Adani Group is reportedly in talks with multiple multinational consumer goods companies to sell its entire stake of 43.97 per cent in Adani Wilmar.
On technical setup, analysts largely suggested that the counter looked 'weak'. Immediate support on the counter could be seen at Rs 283.
"The stock is looking weak. It may slip towards Rs 265 level in the near term. On the higher side, resistance would be around Rs 295," said DRS Finvest founder Ravi Singh.
"Adani Wilmar is bearish but also oversold on daily charts with strong resistance at Rs 303. Investors should buy only if it closes above the said resistance level. Next support will be at Rs 283," said AR Ramachandran from Tips2trades.
"The counter is constantly making lower top lower lows, which is a sign of a well-established bear trend. As we advance, Rs 250 will be seen as crucial support and major resistance is seen near Rs 350. One can expect Rs 250–350 as a trading zone for Adani Wilmar for the next month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
The company posted a weak set of Q2 FY24 numbers with revenue/EBITDA down 13.3 per cent/43.4 per cent YoY with an adjusted loss of Rs 77.2 crore. "Edible oil volumes grew 4 per cent YoY with a value decline of 19 per cent vis-a-vis Saffola edible oil volume growth in low single-digit and value decline of 12 per cent for the same quarter," said Nuvama Institutional Equities.
"Adani Wilmar posted an adjusted loss of Rs 130 crore due to a loss in edible oil driven by divergent trends in the spot (physical) and future prices, resulting in hedging losses. Restrictions on exports of basmati and non-basmati rice continued during the quarter. EBITDA margin came in at mere 1.2 per cent, down 62 bps YoY," it added.
Nuvama also mentioned that the company incurred a loss in both Q1 FY24 and Q2 FY24 due to hedges misalignment, which lead to divergent movement in spot and future market.
"This was a one-time phenomenon, which the company didn't expect and shall not continue going forward. There will be no further misalignment of hedgers. The entire industry suffered from this. We expect such hedges misalignment from H2," it further stated.
(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)
Also read: Stock recommendations for November 20, 2023: Nykaa, IRCTC, Birla Corp and SBI Life
Also read: Titagarh Rail shares fall 6% from record high; can they cross Rs 1,100 mark?
Adani Wilmar Ltd shares fell in Monday's trade, pausing their two-day upward move. The stock slipped 2.71 per cent to hit a one-year low price of Rs 287. At this price, the scrip has declined around 15 per cent in the past one month and 52 per cent on a year-to-date (YTD) basis. The recent fall in the share price came after it was reported that Adani Group is reportedly in talks with multiple multinational consumer goods companies to sell its entire stake of 43.97 per cent in Adani Wilmar.
On technical setup, analysts largely suggested that the counter looked 'weak'. Immediate support on the counter could be seen at Rs 283.
"The stock is looking weak. It may slip towards Rs 265 level in the near term. On the higher side, resistance would be around Rs 295," said DRS Finvest founder Ravi Singh.
"Adani Wilmar is bearish but also oversold on daily charts with strong resistance at Rs 303. Investors should buy only if it closes above the said resistance level. Next support will be at Rs 283," said AR Ramachandran from Tips2trades.
"The counter is constantly making lower top lower lows, which is a sign of a well-established bear trend. As we advance, Rs 250 will be seen as crucial support and major resistance is seen near Rs 350. One can expect Rs 250–350 as a trading zone for Adani Wilmar for the next month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
The company posted a weak set of Q2 FY24 numbers with revenue/EBITDA down 13.3 per cent/43.4 per cent YoY with an adjusted loss of Rs 77.2 crore. "Edible oil volumes grew 4 per cent YoY with a value decline of 19 per cent vis-a-vis Saffola edible oil volume growth in low single-digit and value decline of 12 per cent for the same quarter," said Nuvama Institutional Equities.
"Adani Wilmar posted an adjusted loss of Rs 130 crore due to a loss in edible oil driven by divergent trends in the spot (physical) and future prices, resulting in hedging losses. Restrictions on exports of basmati and non-basmati rice continued during the quarter. EBITDA margin came in at mere 1.2 per cent, down 62 bps YoY," it added.
Nuvama also mentioned that the company incurred a loss in both Q1 FY24 and Q2 FY24 due to hedges misalignment, which lead to divergent movement in spot and future market.
"This was a one-time phenomenon, which the company didn't expect and shall not continue going forward. There will be no further misalignment of hedgers. The entire industry suffered from this. We expect such hedges misalignment from H2," it further stated.
(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)
Also read: Stock recommendations for November 20, 2023: Nykaa, IRCTC, Birla Corp and SBI Life
Also read: Titagarh Rail shares fall 6% from record high; can they cross Rs 1,100 mark?