- Adani Wilmar’s shares opened at a discount on the NSE as well as BSE though its fundamentals are good and this weak listing was due to market sentiments.
- It breached ₹300 levels due to speculative interest, but it is fairly priced.
- They expect the share price to increase and have given near-term targets and stop loss.
Weak market sentiments led to a tepid listing of Adani Wilmar’s IPO, though its fundamentals and valuations were good. Adani Wilmar’s shares got listed at ₹227 apiece on the NSE, lower by ₹3 from its upper price band of ₹230 per share. On the BSE, the shares got listed at a discount of 4%, at ₹221 over the issue price of ₹230. However, its share price soon increased and made an intraday high of ₹249 on the NSE.
The share price reached its intraday high of ₹315.95 logging an 18% rise from its listing day close of ₹268.25 per share on the NSE. Experts suggest that investors can book profits as the stock is fairly priced.
What do experts have to say?
“Adani Wilmar shares are fairly priced at current levels and I would advise investors to book profit if their view is short-term because there is a lot of speculative interest involved in the FMCG counter post-listing. Those who have a long-term view are also advised to maintain the trailing stop loss at around ₹265 to ₹270 as there can be sharp downside movement in the counter once the profit-booking triggers in this counter,” said Avinash Gorakshkar, Head of Research at Profitmart Securities.
He added that Adani Wilmar’s shares are currently standing at a PE multiple of 40, indicating that the stock is a fairly priced stock.
“Adani Wilmar share price has breached ₹300 levels and currently it is sustaining above ₹300. So, those investors who still hold Adani Wilmar shares are advised to hold the counter with trailing stop loss at ₹268 for near term target of ₹325 to ₹330,” said Anuj Gupta, Vice President at IIFL Securities.
“Adani Wilmar Limited is well-positioned to gain the expected growth in this industry due to its outstanding product mix, established brand name, robust distribution network, varied client base, and proven financial performance. In addition, the firm intends to expand its customer base by launching new value-added products and strategic acquisitions, as outlined in its objects of the offer,” said Akhil Rathi, Vice President —Advisory at Marwadi Shares and Finance Limited.
“The company has strong leadership in branded edible oil segment with a market share of around 18 per cent which is expected to increase going forward. Also, it is available at a reasonable valuation as compared to its peers. At the current market price, long-term investors can add the stock to the portfolio,” he added.
About Adani Wilmar Limited
Adani Wilmar Limited is a joint venture between the Adani Group and the Wilmar Group of Singapore. It had opened its three-day initial public offering (IPO) from January 27th 2022 to January 31st 2022. This issue was subscribed by more than 17 times in 3-day bidding. The edible oil major finalized the issue price of its ₹3600 crore IPO with an initial share sale at ₹230 per share on Friday.
Adani Wilmar is a leading FMCG food company that offers essential kitchen commodities like edible oil, wheat flour, pulses, rice and sugar.
