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New Delhi: Shares of Adani Wilmar were locked in the lower circuit for the third straight session on Friday, thanks to a muted performance in March 2022 quarter, and a sharp selloff in broader markets.

The stock, which has been on a downtrend for the last six sessions, has lost 26.4 per cent from its latest peak of Rs 878.35 on April 28 during this period. The market capitalization of Adani Wilmar has dropped below Rs 85,000 crore. On Friday, the scrip hit the lower circuit of 5 per cent at Rs 646.20.

The recently-listed Adani group firm had reported a 25.62 per cent fall in net profit to Rs 234.29 crore in the fourth quarter of the financial year 2021-22, compared to a profit of Rs 315 crore in the same period the previous year.

Revenue from operations for the quarter came in at Rs 14,960.37 crore, up 40.18 per cent from Rs 10,672.34 crore in the year-ago quarter.

Earlier this week, Adani Wilmar announced to acquire popular rice brand ‘Kohinoor’ from McCormick Switzerland GMBH.

The takeover will give Adani Wilmar an exclusive right over the brand Kohinoor Basmati rice along with a Ready to Cook’, ‘Ready to Eat’ curries and meals portfolio under the Kohinoor Brand umbrella in India, it said in a regulatory filing.

Shares of the company have spiked manifold in recent months as investors believe the company will benefit from soaring edible oil prices. The company highlighted that due to the war in Ukraine, sunflower consumption has come down by 50 per cent. India has now started importing sunflower oil from origins such as Argentina, Russia and Turkey.

In late April, Edelweiss Research said the stock’s bull run may come to an end. It had initiated coverage on the stock with ‘hold’ and a target price of Rs 559 over the next 12 months.

The domestic brokerage firm said that while the company has strong growth visibility, the gains in the stock following listing suggest that it is already priced in.

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