Shares of newly listed Adani group firm Adani Wilmar Ltd extended gains and held steady on the upper circuit for the second day in a row on Thursday, up 20 percent at Rs 386.25 on the National Stock Exchange (NSE). The recently-listed Adani Wilmar stock, a manufacturer of edible oil and other FMCG products, is in high demand with investors despite its muted debut on Tuesday. With today’s rally, Adani Group’s edible oil share is up 68 percent from its issue price of Rs 230 per share, and is more than 70 percent off its listing price of Rs 227 on the NSE. The stock is up 75 percent from its debut price of Rs 221 on the BSE in just three days after listing.
Should investors sell, hold or buy?
The majority of analysts were surprised by the company’s negative debut, saying that a discounted listing of Adani Wilmar is a buying opportunity for investors. Arafat Saiyed, Senior Research Analyst, Reliance Securities said investors who received the shares in the IPO should keep them. “It is a long-term game as the company is a leading player in its segment with strong potential,” he added.
The Adani Wilmar is expected to benefit from his strong heritage along with professional management and experienced board. It has also delivered good revenue growth in recent years and has a decent financial profile, said Narendra Solanki, head of equity research (fundamental), Anand Rathi Shares & Stock Brokers. “After listing, investors can continue to do so for the long term,” he added.
Furthermore, Anshuman Khanna, director of ValPro, said: “The listing has followed a stable path with moderate gains on the day of listing and has continued steadily thereafter, unlike some of the other recent quotes that have lacked fundamental strength and on the day of the listing showed a speculative gain and then declined We believe Adani wilmar should do well in the medium to long term as the stock’s performance will be reflected in consistent quarterly growth Fundamental investors should remain invested , while traders can make short-term profits.”
Adani Wilmar has been rising for 3 consecutive days after listing. “The stock is reasonably priced and one can hold the stock until some sale is seen. If you think it’s risky, sell about 50 percent of the amount so that trend isn’t missed. Those looking to create new positions can wait for some retracement, which can be expected as earnings postings roll in,” said Manoj Dalmia, founder and director of Proficient Equities Limited.
Adani Wilmar Enters Rs 50,000 Crore M-Cap Club
Due to the steep rise in market price that Adani Wilmar has seen, the company joins an elite group of companies with a market cap (market cap) of Rs 50,000 crore. Currently, Adani Wilmar’s market cap was Rs 50,201 crore, the NSE data showed. On the BSE, the company’s market cap was Rs 49,621 crore as the share was locked at Rs 381.80, a 20 percent higher circuit.
Adani Wilmar is the seventh listed company of Adani Group. The company is the sixth group company with a market capitalization of over Rs 50,000 crore. Adani Power is the only company with a market cap of less than Rs 50,000 crore within the group, the current market cap of the company is Rs 42,059 crore. The remaining five companies, Adani Green Energy, Adani Transmission, Adani Enterprises, Adani Total Gas and Adani Ports and Special Economic Zone each have a market capitalization of over Rs 1 trillion. Now the total market capitalization of all Adani Group companies stands at about Rs 11.30 trillion.
Adani Wilmar’s board of directors is expected to meet on February 14, 2022 to consider and approve unaudited financial results for the quarter and nine months ended December 31, 2021.
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