The share price of Adani Wilmar limited reached ₹504.65 on Tuesday’s early trades. The shares of the company had an issue price of ₹230 per share and it got listed on the bourses on February 8, 2022.
In less than two months, the share price of the company has increased by more than double, hence maximizing shareholders’ wealth. The company got listed on the bourses at a discounted price of ₹221 on the BSE and gave returns of 128.35% to those investors who invested once the shares got listed. Analysts observed that the share price of the company was getting affected by the developments in the Russia Ukraine conflict.
Adani Wilmar is a joint venture between Adani Enterprises and Wilmar International. It has become one of the largest FMCG companies in India. It is known for its range of edible oils and other food products like rice, wheat flour, pulses, sugar and more.
On March 23, 2022, analysts at JP Morgan said that Adani Wilmar’s shares are going nowhere in the next year. The analysts believed that the stock was perfectly priced then. They gave a target price of ₹367, with a ‘neutral’ rating, which was nearly 6% below its last closing price on Tuesday, 22nd March.
During the same time, the company was planning on the acquisition of regional brands and processing units in several states of the country. It has already acquired a sick rice processing unit in West Bengal to mark the journey in the segment.
“We are targeting to grow fast in the daily-use rice segment which is 30-35 million tonne per annum apart from public distribution foodgrain,” said Angshu Mallick MD and CEO, Adani Wilmar.
The company reported a net profit of ₹211 crores, up 66% as compared to the same period last year. Its revenue from operations grew from ₹10,299 crores to ₹14,379 crores, up 40%.
The company’s edible oil segment contributed to 84% of its total revenue. Its market share increased from 18% to 18.9% in one year.
The company continues to expand its distribution network through physical and digital means. Ten new Fortune mart stores were successfully launched in 9 months from April 1, 2021, to December 31, 2021. The company is planning to open 100 additional outlets within the next year.
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