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Adani Wilmar stock joins market rally, surges over 4%

Adani Wilmar stock joins market rally, surges over 4%

Shares of Adani Wilmar touched an intraday high of Rs 608.9, rising 4.66% against the previous close of Rs 581.8

The Adani Group stock is trading higher than 50-day, 100-day and 200-day moving averages but lower than 5-day and 20-day moving averages. The stock closed 1.22 per cent lower in the previous session.  The Adani Group stock is trading higher than 50-day, 100-day and 200-day moving averages but lower than 5-day and 20-day moving averages. The stock closed 1.22 per cent lower in the previous session.

Shares of Adani Wilmar were trading higher amid a recovery in broader market indices today. Adani Wilmar stock opened 2.96 per cent higher at Rs 599 on BSE. The market cap of the firm rose to Rs 78,357 crore. The share touched an intraday high of Rs 608.9, rising 4.66% against the previous close of Rs 581.80.  

A total of 2.11 lakh shares of the firm changed hands amounting to a turnover of Rs 12.62 crore on BSE. The stock has lost 5.74 per cent in a month and fallen 7.16 per cent in a week.  

The Adani Group stock is trading higher than 50-day, 100-day and 200-day moving averages but lower than 5-day and 20-day moving averages. The stock closed 1.22 per cent lower in the previous session.  

Also read: Adani Wilmar stock resumes correction, falls 4% in early trade

Meanwhile, BSE has placed the stock under the Additional Surveillance Measures (ASM) list. Those stocks which are under surveillance due to price variation, volatility, volume variation is included in the list. Adani Wilmar stock has lost 30.67 per cent or Rs 269.45 from its record high of Rs 878.30 hit on April 28, 2022 compared to its listing price of Rs 221 on February 8.  

Before hitting the roof, 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 muted market debut on February 8. Shares of Adani Wilmar listed at Rs 221, a 3.91 per cent discount to their IPO issue price on BSE. The issue price of the IPO stood at Rs 230. The firm offered its shares in a price band of Rs 218-Rs 230.

Brokerage KRChoksey has initiated coverage on Adani Wilmar and sees over 20 per cent upside from the current level. The brokerage firm said that the company's raw material sourcing capabilities are supported by extensive business networks. It imports 70 per cent of its raw materials, and its market leadership has facilitated to source raw materials from top global suppliers from the international markets.

Also, Wilmar International is the largest palm oil supplier in the world and provides it with an additional competitive edge as it need not depend on third-party suppliers for sourcing palm oil.  

"We believe AWL's focus on the growth of FMCG and Packaged food business and shift to value-added products will result in increased market share and expansion of margins," KRChoksey said.  

On May 2, Adani Wilmar clocked a 26 per cent fall 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. However, the company reported 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 corresponding quarter of 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.

Meanwhile, Indian market looked set to close in the green today after five sessions of losses. Sensex was trading 665 points higher at 53,595 and Nifty jumped 220 points to 16,028 in the afternoon session.