Adani Wilmar up about 3% on strong Q3 volume growth; expert advises ‘hold’

Market


The Adani Wilmar share price was up about 3% in early trade on January 11 after posting healthy volume growth for the quarter ended December 31. The stock opened higher at 584 and continued to gain to hit day’s high of 596 in early morning trade.

At 10.14 am, the stock had pared some morning gains to trade at 586.95, up about 2.6%.

The FMCG player saw strong volume growth across all segments in the quarter. As per the regulatory filing, Adani Wilmar posted high-single-digit growth in edible oil volumes, while the growth was in low-single digit in value terms in Q3FY23.

Meanwhile, the company’s food and FMCG segment posted high-20s growth in volumes and mid-40 growth in value in percentage terms during Q3FY23. Adani said, the food business continues to grow at a very strong rate, driven by increasing penetration and amply supported by our wide-spread distribution network of edible oils across India. 

“Adani Wilmar has reported record volume growth that is expected to improve margins of the company. This is the major reason for bulls favouring this stock in early morning deals. Those who have this stock in portfolio should hold the strong maintaining stop loss below 550 apiece levels whereas fresh buying is advised only above 650,” said Ravi Singhal, CEO at GCL Securities.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.


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