Adani Wilmar shares rise after discounted listing. Should you buy, sell or hold?
- Adani Wilmar share price: Tepid listing of Adani Wilmar IPO can be attributed to weak market sentiments otherwise fundamental and valuations were good for this public issue
Adani Wilmar share made its debut at Indian stock market at a discounted price of ₹227 per share on NSE, ₹3 lower from its upper price band of ₹230 per share levels. However, Adani Wilmar share price soon surged and went on to make its intraday high of ₹249 on NSE. According to stock market experts, those who have long term view can hold the counter for ₹300 to ₹320 target whereas those who have short-term view can book profit at around ₹280 apiece levels.
Speaking on Adani Wilmar share listing; Santosh Meena, Head of Research at Swastika Investmart said, "Tepid listing of Adani Wilmar IPO can be attributed to weak market sentiments otherwise fundamental and valuations were good for this IPO. Those who applied for listing gain can maintain a stop loss of ₹200 while long-term investors should hold it. New investors can also look at buying opportunities at initial weakness."
Highlighting the fundamentals that may fuel Adani Wilmar share price further; Akhil Rathi, Vice President —Advisory at Marwadi Shares and Finance Limited said, “Adani Wilmar Limited is well-positioned to gain the expected growth in this industry due to its outstanding product mix, established brand name, robust distribution network, varied client base, and proven financial performance. In addition, the firm intends to expand its customer base by launching new value-added products and strategic acquisitions, as outlined in its objects of the offer. The company has strong leadership in branded edible oil segment with a market share of around 18 per cent which is expected to increase going forward. Also, it is available at a reasonable valuation as compared to its peers. At the current market price, long-term investors can add the stock to the portfolio.”
Speaking on Adani Wilmar share price target for short term; Anuj Gupta, Vice President at IIFL Securities said, "Adani Wilmar shares look promising from the fundamental perspective and one can hold it for long term for whopping gains. However, for those who have short term time horizon, they are advised to book profit around ₹282 apiece levels."
For those who missed to get Adani Wilmar shares during allocation; Ravi Singhal, Vice Chairman at GCL Securities said, "Those who want to buy Adani Wilmar shares are advised to buy this stock in ₹220 to ₹240 per share range for one year target of ₹300 to ₹320 maintaining strict stop loss at ₹190 apiece levels."
Adani Wilmar Limtied — a joint venture between Adani Group and Wilmar Group of Singapore — had opened its three-day initial public offering (IPO) on January 27th and the issue closed on January 31. The public issue was subscribed more than 17 times in 3-day bidding. The edible oil major on Friday finalised the issue price of its ₹3,600 crore initial share sale at ₹230 per share.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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