Synopsis: AWL Agri Business Ltd slipped after 1.70 crore shares exchanged hands, indicating a likely bulk/block deal. The drop was driven after the Adani Group’s full exit, selling its remaining 7% stake, leaving Wilmar International as the sole promoter.
This company deals in edible oil and food, and other FMCG products and operates an extensive supply chain, strong distribution network, and diverse product portfolio, catering to both domestic and export markets is now in the focus after 1.70 cr shares exchanged hands.
With market capitalization of Rs. 34,629 cr, the shares of AWL Agri Business Ltd are currently trading at Rs. 266.45 per share, dropping by 6% in today’s market session, making a low of Rs. 261.25, from its previous close of Rs. 277.60 per share.
What’s the news
Shares of AWL Agri Business Ltd came under pressure today. The session saw an unusual activity, with 1.70 crore shares traded, nearly three times the recent two-week average of 59.38 lakh hinting at the likelihood of a sizable bulk or block transaction. The stock registered a turnover of Rs. 460 crore.
This was primarily triggered after the complete exit of the Adani Group from the company. The Adani Group sold its remaining 7% stake in AWL Agri Business through a block deal, marking the full divestment of its earlier 44% holding in the company.
This change in shareholding structure shifted the promoter status, leaving Singapore-based Wilmar International as the sole promoter with an estimated 57% stake. The exit of such a significant institutional investor impacted market sentiment, creating selling pressure on the stock.
In addition to the shareholding change, the company’s financial results contributed to the cautious investor stance. AWL Agri Business reported a 21% decline in consolidated net profit for the September quarter, although total income grew by about 20%. The edible oil sector, where the company operates, faces some headwinds related to commodity price fluctuations and supply chain dynamics, which have also influenced the stock’s performance negatively.
Trading volumes were significantly higher on the day of the price fall, indicating a bulk or block deal activity, likely linked to the large promoter exit. The stock’s underperformance relative to the benchmark indices and sector reflects both the impact of promoter divestment and ongoing investor reassessment of valuation in the mid-cap edible oil sector.
About the company
AWL Agri Business Ltd is a leading player in India’s agricultural and food-processing sector, engaged in edible oils, agri-inputs, and value-added farm products. The company operates an extensive supply chain, strong distribution network, and diverse product portfolio, catering to both domestic and export markets. Its scale, brand reach, and integrated operations position it as a key participant in the country’s agri-value chain.
The company reports a ROCE of 20.9% and an ROE of 13.9%, with a debt-to-equity ratio of just 0.11. It has also successfully brought down its overall debt levels.
Written by Manideep Appana
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