Food Major Adani Wilmar Limited (AWL) has hit 1 lakh crore in market value as the stock reached new highs on Tuesday.
Adani Wilmar was locked in the upper circle of 5 percent on Tuesday, a rise of INR20.20 to record a new high of INR802.80 on BSE. It had opened at 798.00 INR against the previous close of 764.60 INR.
At 11:52, its m-cap stood at ₹ 1.04 lakh crore crore on BSE. The company’s share has risen 249 percent from the issue price of 230 INR.
It was traded at a maximum of INR803.15 on the NSE, an increase of INR 38.20 or 4.99 percent.
The company is the seventh Adani Group company to enter the ₹ 1 lakh crore brand in the form of m-cap. Last week, Adani Power shares had passed the 1 lakh crore mark of ₹ 1 lakh.
The company sells cooking oil and other food products under the Fortune brand and is a 50:50 joint venture between the business conglomerate Adani Group and Singapore-based Wilmar.
Analysts attribute the rise in equities to rising oil prices and constraints on demand and supply.
According to Santosh Meena, Head of Research, Swastika Investmart Ltd., “The war in Ukraine has pushed up commodity prices worldwide, and Ukraine is the largest exporter of oilseeds like sunflower, and soybean seeds have pushed up edible oil prices. The Indonesian export ban on palm oil and Malaysian export tax will put further pressure on the oil supply. “
“This whole problem has skyrocketed in the price of edible oil in India, benefiting companies like Adani Wilmar. The company will have unexpected gains through. Insold inventory revaluation. Further, this situation will improve the company’s overall margins. Due to these factors, the company has crossed “However, we advise investors to be cautious as the stock has moved far beyond its fundamentals,” Meena added.
The company debuted on the stock exchanges in February this year. Adani Wilmars, the joint venture between Adani Group and Wilmar Group of Singapore, was drawn over 17.37 times. The listing of the edible oil major, which opened between January 27 and 31, had received bids for 212.87 crore shares against an offer size of 12.25 crore shares.
The meeting of the Company’s Board of Directors will be held on Monday, May 2, 2022, to consider and approve the audited financial results (Standalone and Consolidated) for the quarter and the year ended March 31, 2022.
April 26, 2022