Adani Wilmar Share Price Nearly Triples Since Listing: Should You Buy, Sell or Hold?

Adani Wilmar
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  • Adani Wilmar shares have tripled since its IPO in February, as edible oil prices jumped on the back of supply disruptions due to the Russia-Ukraine war, palm oil export ban by Indonesia and favorable sentiments for Adani Group shares. 
  • The shares closed at Rs 680 on 6th June, up nearly 3x from IPO price of Rs 230 per share.
  • The rally in the share prices has made Adani Wilmar the best performing IPO for 2022 in all of Asia. 

Adani Wilmar: Comparison With Top Performing Chinese IPOs in 2022

Adani Wilmar Share : Financials

  • Adani Wilmar reported a profit of Rs 234.3 crore for the quarter ended March 2022 against a net profit of Rs 315 crore in the year-ago period, implying a drop of 26%. However, the profit rose 11% on a QoQ basis.
  • The company clocked a 40% 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. The revenues were up 4% as compared to the previous quarter. 
  • In its earnings update, Adani Wilmar said, "The Russia-Ukraine war has hit sunflower oil consumption which has fallen 50% as Ukraine is the largest supplier of sunflower to the world."

Adani Wilmar Stock Outlook: Brokerage Radar
 

Edelweiss: Hold Rating 

  • After a massive rally over the last few months. domestic brokerage Edelweiss Research said that the stock's bull-run may come to an end. It has a 'hold' rating with a target price of Rs 559 over the next 12 months.
  • Edelweiss Research said that while the company has strong growth visibility, the gains in the stock following listing suggest that it is already priced in.

ICICI Securities: Hold Rating

  • ICICI Securities recently initiated its coverage on Adani Wilmar with a 'Hold' rating and a target price of Rs 550.
  • The brokerage firm expects the edible oil business to post a 10% volume growth CAGR over FY22-24E (including the impact of the Bangladesh acquisition). "In FY23E, we expect volume growth of 11% with some benefit of full-year consolidation of Bangladesh – we note Bangladesh operations are mainly in the edible oil segment. For FY24E, we expect volume growth of 9% in the edible oil business," it said.
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