Shares of Adani Wilmar surged about 4% at ₹390 apiece on the BSE in Tuesday’s early deals after the edible oil major reported a 66% jump in consolidated net profit to ₹211 crore for the December 2021 quarter. Meanwhile, its revenue from operations rose over 40% to ₹14,379 crore from ₹10,229 crore in the same quarter last year.
“The topline performance of the company was led by the edible oils business on the back strong volumes. The overall market is in weak sentiments taking cues from the global markets. However, being in the FMCG group, Adani Wilmar is attractive for long term investment and once the sentiments stabilizes, the stock may outperform the index,” said said Ravi Singh, VP and Head of Research at Share India Securities. He advised that investors can look to Buy the stock on dips with the targets of ₹450-480 in the medium term.
It was the first quarterly result announced by Adani Wilmar after it got listed late last month. Adani Wilmar is a joint venture between the Adani Group and the Wilmar Group of Singapore. It sells its cooking oils and some other food products under the Fortune brand as well as food products like rice, wheat flour and sugar and non-food products like soap, handwash and sanitisers.
The Adani Group stock made its debut on February 8, 2022 and is up more than 69% from its IPO issue price of ₹230. Adani Wilmar had opened its three-day initial public offering (IPO) on January 27 and the issue closed on January 31.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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