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Adani Wilmar share price at new life-time high. What's fueling multibagger IPO?

Multibagger IPO: All technical of AWL share price like indicators like RSI, MACD, Oscillators and MAS are supporting the bull run on daily basis, say experts.Premium
Multibagger IPO: All technical of AWL share price like indicators like RSI, MACD, Oscillators and MAS are supporting the bull run on daily basis, say experts.

  • Adani Wilmar share price is surging due to two major reasons — Ruchi Soya FPO injecting fresh impetus in the edible oil segment of the FMCG market and palm oil prices appreciating to the tune of 14 per cent giving margin benefit to company's unsold inventory — say stock market experts

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Multibagger IPO: Adani Wilmar share price today tested 500 levels for the first time since listing on 8th February 2022 and hit its new all-time high of 504.65 per share levels on NSE. While ascending to its new peak, Adani Wilmar shares doubled its lucky allottees money in around 2 months of investment as the issue price of Adani Wilmar IPO was at 218 to 230 per equity share. Earlier, AWL shares had hit fresh high on 25th March 2022, and this newly listed Adani stock hit upper circuit on Monday session as well.

According to stock market experts, Adani Wilmar share price is surging due to two major reasons — Ruchi Soya FPO injecting fresh impetus in the edible oil segment of the FMCG market and palm oil prices appreciating to the tune of 14 per cent giving margin benefit to Adani Wilmar's unsold inventory. They said that palm oil prices are expected to remain on the higher side leading to sharp upside after every time there is profit-booking. Hence, the company is expected to continue reaping margin benefits in upcoming quarters. From technical perspective, indicators like RSI, MACD, Oscillators and MAS are supporting the bull run on daily basis.

Speaking on Adani Wilmar share price rally; Ravi Singh, Vice President & Head of Research at Share India Securities said, "Adani wilmar shares are backed by strong fundamentals and technical support at current levels. All its technical indicators like RSI, MACD, Oscillators and MAS are supporting the bull run on 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."

On why market is bullish on this multibagger IPO; Ravi Singhal, Vice Chairman at GCL Securities said, "Adani Wilmar is getting short term benefit of Ruchi Soya FPO as it has brought fresh impetus in edible oil segment of the FMCG business. The company is getting margin benefit on its unsold palm oil inventory as well as palm oil has appreciated around 14 per cent in recent times. This rise in palm oil is expected to sustain that may lead to strong quarterly numbers from the company in upcoming result season."

On what may continue to fuel AWL share price in future; Anuj Gaur, Director at IBBM, Money Makers Securities said, "In countries like India, where population is continuously rising and urban culture is growing rapidly, demand for ready to cook foods will increase drastically. This could be the possible reason for AWL share price hitting circuits and rising continuously post-listing. However, one should not enter at current levels and wait for profit-booking to the tune of near 15-20 per cent from current levels."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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