Share price of Adani Wilmar: Stock exchange Today, the BSE requested clarification from the company regarding the stock price change. Adani Wilmar responded with the following statement: "We would like to clarify that the movement in the share price of the company is purely due to market conditions and absolutely market driven and the management of the company neither has any control nor has any knowledge of reasons for movement in price of shares."
Adani Wilmar shares recovered sharply after hitting a new one-year low on Monday. During intraday trading, the stock slid 3.10 percent to a 52-week low of Rs 285.85. It later recovered, closing 5.05 percent higher at Rs 309.90. Despite the indicated increase, the script is down 57.21 percent from its one-year high of Rs 668, which was reached on December 1 of last year.
Today, the BSE sought information from the company over the stock price movement. Adani Wilmar responded with the following statement: "We would like to clarify that the movement in the share price of the company is purely due to market conditions and absolutely market driven and the management of the company neither has any control nor has any knowledge of reasons for movement in price of shares. We would also want to reaffirm that the company is not aware of any information that is required to be disclosed but has not yet been disclosed to the stock exchanges."
Today, over 8.72 lakh shares were traded on the BSE. The volume was much higher than the two-week average volume of 2.51 lakh shares. The counter's turnover was Rs 26.10 crore, with a market capitalisation (m-cap) of Rs 40,277.04 crore.
The counter traded above the 5-day, 10-day, and 20-day simple moving averages (SMAs), but below the 30-day, 50-day, 100-day, 150-day, and 200-day SMAs. The 14-day relative strength index (RSI) for the stock was 45.43. A value less than 30 is considered oversold, while a value more than 70 is considered overbought. The stock of the company has a price-to-equity (P/E) ratio of 161.57 and a price-to-book (P/B) value of 5.12.
Trendlyne data reveal that the script has an analyst target price of Rs 353, implying a possible upside of 14% in a year. It has a one-year beta of 0.6, indicating that the stock is volatile.
Adani Wilmar recorded a total net loss of Rs 130.73 crore in the September 2023 quarter (Q2 FY24), as profitability in the cooking oil sector was negatively impacted. In the same period last year, the company, which sells edible oil and other food products under the Fortune brand, made a net profit of Rs 48.76 crore.
Its overall income also fell to Rs 12,331.20 crore during the July-September 2023-24 period from Rs 14,209.20 crore the previous year. Adani Wilmar's overall expenses were Rs 12,439.45 crore in the second quarter of this fiscal year, compared to Rs 14,149.62 crore in the same period last year.
In terms of volume, the company's sales increased 11% to 1.46 million tonnes. According to Adani Wilmar, profitability was harmed by a loss in the edible oil segment, which was somewhat offset by higher margins in the Food & FMCG and industry critical areas. It said that edible oil losses are typically driven by divergence patterns in spot (physical) and future prices, resulting in hedging losses.
During Q2 FY24, the edible oil business accounted for 58% of total volumes. Cooking oils, on the other hand, accounted for 74% of total revenue from operations, which amounted at Rs 12,267 crore. Adani Wilmar is a 50/50 joint venture (JV) between the Adani Group and Wilmar of Singapore.
