Adani Wilmar up about 3% on strong Q3 volume growth; expert advises ‘hold’
2 min read . Updated: 11 Jan 2023, 10:38 AM IST
Premium- Adani Wilmar posted high-single-digit growth in edible oil volumes, while the growth was in low-single digit in value terms in Q3FY23
The Adani Wilmar share price was up about 3% in early trade on January 11 after posting healthy volume growth for the quarter ended December 31. The stock opened higher at ₹584 and continued to gain to hit day's high of ₹596 in early morning trade.
At 10.14 am, the stock had pared some morning gains to trade at ₹586.95, up about 2.6%.
Adani Wilmar saw strong volume growth across all segments in the quarter. As per the regulatory filing, Adani Wilmar posted high-single-digit growth in edible oil volumes, while the growth was in low-single digit in value terms in Q3FY23.
Meanwhile, the company's food and FMCG segment posted high-20s growth in volumes and mid-40 growth in value in percentage terms during Q3FY23. Adani said, the food business continues to grow at a very strong rate, driven by increasing penetration and amply supported by our wide-spread distribution network of edible oils across India.
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“Adani Wilmar has reported record volume growth that is expected to improve margins of the company. This is the major reason for bulls favouring this stock in early morning deals. Those who have this stock in portfolio should hold the strong maintaining stop loss below ₹550 apiece levels whereas fresh buying is advised only above ₹650," said Ravi Singhal, CEO at GCL Securities.
Meanwhile, Jatin Gedia- Technical Research Analyst, Capital Market Strategy at Sharekhan by BNP Paribas is bullish and said the stock is a buy with a stop loss of ₹540 for targets of ₹660 and ₹730.
“Adani Wilmar has been trading within the broad range of ₹878 – 492 since the past eight months. During the past three months it has witnessed a sharp correction which halted at the lower end of the reverse channel derived by joining the previous two swing highs of ₹878 and ₹841. Since past two weeks it has witnessed a sharp recovery form the lows of ₹492 and the structure has turned in the favor of the Bulls. The daily momentum indicator has a positive crossover which is a buy signal. Thus, both price and momentum indicator is suggesting that upside momentum is likely to continue and hence one can Buy the stock with a stop loss of ₹540 for targets of ₹660 and ₹730."
Please attribute the same to Jatin Gedia- Technical Research Analyst, Capital Market Strategy at Sharekhan by BNP Paribas
Top Adani stocks made immense wealth for investors in 2022. The seven listed Adani Group companies added ₹7.4 trillion to investors' wealth in 2022, making them the fastest growing stocks of 2022.
The stock rallied over 179% in 2022 due to its strong brand name and market share compared to the majority of other recently listed companies.
The Russia-Ukraine war led to a global price rise in commodities, including oil. This helped Adani Wilmar. The company owns India's top edible oil brand, 'Fortune'. It has an 18% market share in the edible oil segment.
Adani Wilmar is the FMCG arm of the giant Adani Group. It made its debut on the bourses on 8 February 2022.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
