Shares of Adani Wilmar, the seventh-largest listed company in the Adani group, were locked at the 5% upper circuit during the previous trading session. During Tuesday's intraday, the share price opened on a strong note and touched a high of ₹769.65, rising nearly ₹37. The stock is currently trading at a 4-month high and has reclaimed the ₹1-lakh crore market cap on the BSE.
The stock, which got listed in February this year, is trading 234.63% higher than its issue price of ₹230/share. The stock price rose 10.47 percent in the last eight trading sessions, from ₹696.70 to ₹769.65.
Meanwhile, the company plans to expand its ready-to-cook portfolio. It currently sells ready-to-cook khichdis and seeks to expand that portfolio with rice-based items such as ready-to-cook biryani kit under the Kohinoor foods brand, CNBC TV18 reported.
At present, such kits in the market include: Daawat Biryani Kit, Al-Barkat Chicken Biryani, Gits ready-to-eat biryani, Indian Kitchen Foods gluten-free veg biryani, 24 Mantra organic biryani, and Tata Q ready-to-eat biryani, among others, the report said.
In May, in order to expand the portfolio under food segment, Adani acquired basmati rice brands Kohinoor and Charminar from the US-based McCormick. The company didn't disclose the consideration for the acquisition; it said that the purchase was financed from the IPO.
In the same time frame, Adani Wilmar topped the FMCG chair, dethroning HUL. Adani Wilmar Consolidated revenue crossed the 50,000 mark and stood at ₹54,214 crore in 2022, compared to ₹37,090 crore in 2021. While HUL has reported ₹51,468 crore sales in terms of yearly revenue in the financial year 2021-22. Edible oil prices have skyrocketed during the Russia-Ukraine war and Adani Wilmar has made the most of it.
The company posted a consolidated net profit of ₹193.59 crore for the quarter ended June 30, which was up 10.18 per cent year-on-year (YoY) as against ₹175.70 crore reported during the corresponding quarter in the year-ago period.
The revenue from operations for Q1 of FY2023 stood at ₹14,075.3 crore versus ₹11,369.4 crore, which was up nearly 23.79 per cent YoY.
Adani Wilmar, a joint venture between Adani Enterprises Ltd and Wilmar International Ltd, is the owner of the Fortune brand of edible oils. It has the largest range of edible oils, comprising soya bean, sunflower, mustard, and rice bran. Its Fortune brand of oil has around a 20% market share in India, according to brokerage reports.
It has over 850 manufacturing plants and an extensive distribution network covering China, India, Indonesia, and 30 other countries. The distribution network is the highest among all branded edible oil players in India, with approximately 5,600 distributors across 28 states and 8 union territories throughout India, catering to over 1.8 million retail outlets, according to Edelweiss.
Currently, two promoter entities—Adani Commodities Ltd. (a subsidiary of Adani Enterprises) and Lence Pte Ltd. (subsidiary of Wilmar International) each own nearly 57.174 crore shares (with a face value of ₹1 each) in AWL.
An average of 05 analysts polled by MintGenie have a 'hold' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
