Adani Wilmar Shares Up 68% in 3 Days. Should you Sell, Hold or Buy Now?


Shares of newly listed Adani group firm Adani Wilmar Ltd extended gains and were locked at upper circuit for the second straight day, up 20 per cent at Rs 386.25 on the National Stock Exchange (NSE) on Thursday. Recently-listed Adani Wilmar shares, which is a manufacturer of edible oil and other FMCG products, has been high in demand among the investors despite the muted debut on Tuesday. With today’s rally, the stock of Adani Group edible oil major has surged 68 per cent over its issue price of Rs 230 per share, and is above 70 per cent from its listing price of Rs 227 on the NSE. The stock has zoomed 75 per cent from its debut price of Rs 221 on the BSE in just three days of listing.

Should Investors Sell, Hold or Buy?

Majority of the analysts were surprised by the negative debut of the company and said that a discounted listing of Adani Wilmar is a buying opportunity for the investors. Arafat Saiyed, Senior Research Analyst, Reliance Securities said that investors who have received the shares in the IPO, should hold them. “It is a long term play as the company is a leading player in its segment with strong potential,” he added.

The Adani Wilmar is expected to benefit from its strong parentage along with professional management and experienced board. It has also delivered good growth in Sales over past few years and have decent financial profile, said Narendra Solanki, head- equity research (fundamental), Anand Rathi Shares & Stock Brokers. “Post listing, investors could continue to hold for long term,” he added.

Further, Anshuman Khanna, director, ValPro, said: “The listing has followed a stable path with muted gains on listing day and running steadily thereafter. This is in contrast to some of the other recent listings which have lacked fundamental strength and have shown a speculative rise on listing day and have fallen thereafter. We believe Adani wilmar should do well over the medium to long term as the share performance will be reflected in consistent quarterly growth. Fundamental investors should stay invested while the near term traders can book profits.”

Adani Wilmar has been rising for 3 consecutive days after listing . “The stock is fairly priced and one can hold the stock till some selling is seen. If one finds it risky sell about 50 per cent quantity so that trend is not missed. Those who wish to create new positions may wait for some retracement, it can be expected as profit booking will come in,” suggests Manoj Dalmia, founder & director, Proficient Equities Limited.

Adani Wilmar Enters Rs 50,000 crore M-Cap Club

The steep rally in market price of Adani Wilmar has seen, the company join an elite group of companies having market capitalisation (market cap) of Rs 50,000 crore. Currently, Adani Wilmar market cap stood at Rs 50,201 crore, the NSE data showed. On the BSE, the company’s market cap stood at Rs 49,621 crore, as the stock was locked at Rs 381.80, a 20 per cent upper circuit.

Adani Wilmar is the seventh listed company of Adani Group. The company is sixth group company with a market cap of over Rs 50,000 crore. Adani Power is the only company to have a market cap of less than Rs 50,000 crore within the group, current market cap of the company stands at 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 have market cap of over Rs 1 trillion each. Now the total market cap of all Adani Group firms stands at around Rs 11.30 trillion.

The board of directors of Adani Wilmar are scheduled to meet on February 14, 2022 to consider and approve unaudited financial results for the quarter and nine months ended on December 31, 2021.

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