Shares of Adani Wilmar fell 5 per cent today after India's largest edible oil producer slashed the maximum retail price (MRP) of its Fortune range of edible oils by Rs 10. The move is intended to pass on the benefit to consumers after the government reduced the import duties on edible oils, making them cheaper in the country.
Adani Wilmar stock fell up to 5 per cent to Rs 553.30 against the previous close of Rs 582.40 in the previous session.
Adani Wilmar stock trades higher than 100-day and 200-day moving averages but lower than 5-day, 20-day and 50-day moving averages. In a month, the stock has lost 20.05 per cent.
A total of 1.18 lakh shares of the firm changed hands amounting to a turnover of Rs 6.59 crore on BSE. The market cap of the firm fell to Rs 72,203 crore on BSE.
Adani Wilmar said it has reduced the MRP of Fortune refined Sunflower oil's 1-litre pack from Rs 220 to Rs 210 and MRP of Fortune Soyabean and Fortune Kachi Ghani (mustard oil) 1-litre pack from Rs 205 to Rs 195. The stocks with the updated prices will reach the market soon, it added.
In April this year, edible oil producer Indonesia had proposed to ban palm oil exports from month end. The move pushed the prices of edible oils higher, which were already on the boil due to the ongoing Russia-Ukraine war.
The announcement to ban exports by Indonesia was aimed at containing edible oil prices in the Indonesian domestic market.
India sources 45 per cent of its annual palm oil needs from Indonesia. The ban led to boosting of margins for edible oil producers such as Adani Wilmar. The stock had rallied to its record high of Rs 878.35 on April 28, 2022.
However, the large cap stock has lost 37 per cent compared to the record high till date on profit-booking, Q4 earnings effect and Indonesia lifting ban on the palm oil exports.
The Adani Group firm reported a 25.6 per cent year-on-year decline in its consolidated net profit for the quarter ended March 2022.
The firm reported a profit of Rs 234.3 crore for the quarter ended March 31, 2022 against a net profit of Rs 315 crore in the year-ago period.
However, the company clocked a 40 per cent YoY rise in its consolidated revenue from operations to Rs 14,960.4 crore in Q4 against Rs 10,672 crore in the same quarter last fiscal.
Adani Wilmar Ltd is a joint venture between Adani Group and Wilmar Group of Singapore. It is engaged in the manufacturing 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.
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