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Adani Wilmar stock zooms 133% in 2 months; is it still a good buy?

Adani Wilmar stock zooms 133% in 2 months; is it still a good buy?

Adani Wilmar share has surged 51% in the last 16 trading sessions. On March 7, the stock closed at Rs 340.70 on BSE.

The stock touched all-time high of Rs 514.95 today, against the listing price of Rs 221 on BSE The stock touched all-time high of Rs 514.95 today, against the listing price of Rs 221 on BSE

Stock of Adani Wilmar has rallied 133 per cent since the Adani Group firm's market debut on February 8 this year. The stock touched its all-time high of Rs 514.95 today, against the listing price of Rs 221 on BSE.  

Market cap of the firm stood at Rs 64,853 crore on BSE.. At 2:48 pm, the stock was trading 0.18 per cent lower at Rs 499 on BSE.

Earlier, the stock rose 3.01 per cent to a record high of Rs 514.95 against the previous close of Rs 499.90.  

A total of 14.25 lakh shares of the firm changed hands, amounting to a turnover of Rs 70.65 crore.  

The Adani Group share has surged 51 per cent in the last 16 trading sessions. On March 7, the stock closed at Rs 340.70 on BSE. The company logged a muted market debut on February 8.

Shares of the Adani Group firm made their market debut 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 company offered its shares in a price band of Rs 218-Rs 230.

ALSO READ: How Adani Wilmar Became India’s Second-largest FMCG Firm

However, with the stock more than doubling in nearly two months, here's a look at what experts said on its outlook in the near term.

AR Ramachandran, co-founder & trainer, Tips2Trades said, "Strong fundamentals, interest in the edible oil segment thanks to the Ruchi Soya FPO with increase in palm oil prices have led to better pricing advantages leading to Adani Wilmar stock price at all-time high. Technically, Rs 504 is a massive resistance, close above this level could lead to Rs 630. However, investors are advised to book profits now and re-enter at lower levels near Rs 428- Rs 430."

Manoj Dalmia Founder and Director, Proficient Equities said, "Adani Wilmar shares have been rising since the Ukraine Russia war, as it may hit India's sunflower imports, as per source both countries account for about 70 per cent (Ukraine) and 20 per cent (Russia) of sunflower oil imports. Currently, levels are not advisable for buying. It's better that one waits for a retracement at Rs 405 if defensive or Rs 456 levels for aggressive."

ALSO READ: Adani Group shares on a roll: Four zoom to all-time highs

Anuj Gaur, Director IBBM, MM Securities said, "Adani Enterprises and Wilmar International, has joined hands together to target the tag of one of the largest FMCG companies in India. Adani Wilmar has a vision to become full scale packaged food company with ready to eat and cook segments and diversity of foods chain. In the countries like India, where population is continuously rising and urban culture is growing rapidly due to fast environment, demand of ready to cook foods will increase drastically. Its shares have hit upper circuits continuously since listing but it does not seem to be a right price pick at the current market price. Investors can wait for the healthy correction of 20-25 per cent to pick the stock."

Ravi Singh, Head of Research and Vice President, Share India said, "Adani Wilmar backed by strong fundamentals and technical support, aims to touch the level of Rs 550 in the near term, from current levels. All the momentum indicators like RSI, MACD, Oscillators and MAS are supporting the bull run on a daily basis. The company's recent bet on staples and scouting for acquisition of regional rice brands and processing units in several states of the country, has added more fuel to the rise."