FMCG Stock engaged in offering commodities and essentials including edible oil, wheat flour, rice, pulses, sugar, and many others jumped 4 percent in the day’s trade after the company is likely in talks to invest upto $1 Billion to expand its portfolio.
Price Action
With a market capitalization of Rs. 48,672 Crores, the shares of Adani Wilmar Limited were trading at Rs. 374.50 per equity share, up 3.5 percent from its previous day’s close price of Rs. 362.05.
What Happened
As per reports, Adani Wilmar Limited is in talks to acquire three FMCG companies based in the eastern and southern parts of the country specializing in spices, packaged edibles, and ready-to-cook.
This is said to be Adani Wilmar Limited’s most aggressive capex plan as it is likely to invest upto $1 billion to complete the acquisition, thereby bolstering its presence in the packaged consumer goods market.
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About the Company
Adani Wilmar Limited is a fast-moving consumer goods (FMCG) company which is a Joint venture between Adani and Wilmar Group of Singapore, it is engaged in offering kitchen commodities and essentials including edible oil, wheat flour, rice, pulses, sugar, and many others. It also offers a diverse range of industry essentials, including oleochemicals, castor oil, its derivatives, and de-oiled cake.
It sells its entire range of packed products in edible oils and Food & FMCG segment under the Brands viz. Fortune, King’s, Raag, Bullet, Fryola, Jubilee, Aadhaar, Kohinoor, Charminar and Trophy.
With a strong distribution network and robust sourcing capabilities, Adani Wilmar aims to become India’s largest food FMCG company. It is targeting 25-30% of its top-line to come from direct consumer-facing businesses such as food, FMCG, commodity, and the airport business.
Financials and Ratios
Its Revenue from operations grew by 11.08 percent from Rs. 12,379 Crores in Q1FY24 to Rs. 13,750 Crores in Q1FY25, accompanied by a loss of Rs. 38 Crores to a profit of Rs. 324 Crores.
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In terms of Return ratios, it has reported a return on equity (ROE) of 3.65 percent, and a return on capital employed (ROCE) of 10.4 percent. It has reported a debt-to-equity ratio of 0.29
Written by: Bharath K.S
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