Adani Wilmar shares climb 8% as Q2 FY25 revenue jumps 18%; check near-term target price
Adani Wilmar said its revenue came at Rs 14,460 crore in Q2 FY25, which is a growth of 18 per cent YoY with an underlying 12 per cent YoY volume growth.
- Oct 24, 2024,
- Updated Oct 24, 2024 3:49 PM IST
Shares of Adani Wilmar Ltd on Thursday jumped 8.06 per cent to hit an intraday high of Rs 344.60. Last checked, the stock was up 5.77 per cent at Rs 337.30. At this price, it has slipped 8.09 per cent in 2024 so far.
Today's sharp uptick in the share price came after the company said it has recorded an 18 per cent year-on-year (YoY) rise in its revenue from operations during the second quarter (Q2 FY25).
"Adani Wilmar recorded revenue of Rs 14,460 crore in Q2 FY25, which is a growth of 18 per cent YoY with an underlying 12 per cent YoY volume growth. Edible oils and Food & FMCG segments delivered strong double-digit revenue growth, of 21 per cent YoY and 34 per cent YoY respectively. The strong growth in staple foods was partially offset by the decline in the industry essential segment," it stated in a release.
"With stable edible oil prices, the company has posted strong profits over the last four quarters. For Q2 FY25, operating EBITDA (earnings before interest, taxes, depreciation, and amortisation) was at Rs 613 crore and a PAT (profit after tax) of Rs 311 crore," Adani Wilmar added.
In Q2 FY25, the food & FMCG segment's revenue grew by 34 per cent to Rs 1,718 crore, with an underlying volume growth of 33 per cent YoY. The edible oil segment revenue grew by 21 per cent YoY to Rs 10,977 crore.
Technically, the counter traded higher than the 5-day, 10-day and 20-day simple moving averages (SMAs) but lower than the 30-day, 50-, 100-, 150-day and 200-day SMAs. The scrip's 14-day relative strength index (RSI) came at 51.49. A level below 30 is defined as oversold while a value above 70 is considered overbought.
"One can initial a 'Buy' call at current levels with a stop loss of Rs 320. Expected near-term target would be around Rs 400," Kunal Rambhia, Fund Manager at The Streets, told Business Today TV.
As per BSE, the company's stock has a price-to-equity (P/E) ratio of 64.75 against a price-to-book (P/B) value of 5.01. Earnings per share (EPS) stood at 4.93 with a return on equity (RoE) of 7.74.
Adani Wilmar is an equal joint venture (JV) between the Adani Group and Singapore-based Wilmar. As of September 2024, promoters held an 87.87 per cent stake in the company.
Shares of Adani Wilmar Ltd on Thursday jumped 8.06 per cent to hit an intraday high of Rs 344.60. Last checked, the stock was up 5.77 per cent at Rs 337.30. At this price, it has slipped 8.09 per cent in 2024 so far.
Today's sharp uptick in the share price came after the company said it has recorded an 18 per cent year-on-year (YoY) rise in its revenue from operations during the second quarter (Q2 FY25).
"Adani Wilmar recorded revenue of Rs 14,460 crore in Q2 FY25, which is a growth of 18 per cent YoY with an underlying 12 per cent YoY volume growth. Edible oils and Food & FMCG segments delivered strong double-digit revenue growth, of 21 per cent YoY and 34 per cent YoY respectively. The strong growth in staple foods was partially offset by the decline in the industry essential segment," it stated in a release.
"With stable edible oil prices, the company has posted strong profits over the last four quarters. For Q2 FY25, operating EBITDA (earnings before interest, taxes, depreciation, and amortisation) was at Rs 613 crore and a PAT (profit after tax) of Rs 311 crore," Adani Wilmar added.
In Q2 FY25, the food & FMCG segment's revenue grew by 34 per cent to Rs 1,718 crore, with an underlying volume growth of 33 per cent YoY. The edible oil segment revenue grew by 21 per cent YoY to Rs 10,977 crore.
Technically, the counter traded higher than the 5-day, 10-day and 20-day simple moving averages (SMAs) but lower than the 30-day, 50-, 100-, 150-day and 200-day SMAs. The scrip's 14-day relative strength index (RSI) came at 51.49. A level below 30 is defined as oversold while a value above 70 is considered overbought.
"One can initial a 'Buy' call at current levels with a stop loss of Rs 320. Expected near-term target would be around Rs 400," Kunal Rambhia, Fund Manager at The Streets, told Business Today TV.
As per BSE, the company's stock has a price-to-equity (P/E) ratio of 64.75 against a price-to-book (P/B) value of 5.01. Earnings per share (EPS) stood at 4.93 with a return on equity (RoE) of 7.74.
Adani Wilmar is an equal joint venture (JV) between the Adani Group and Singapore-based Wilmar. As of September 2024, promoters held an 87.87 per cent stake in the company.