Multibagger IPO: Shares of Adani Wilmar crossed Rs 500 level on Tuesday for the first time since listing on February 8, 2022 and touched an all-time high of Rs 504.65 per share on NSE. Reaching new highs, Adani Wilmar’s stock has more than doubled investor money to its issue price in less than two months.
According to a Livemint report, stock market experts said that there are two reasons for the rise in Adani Wilmar’s stock – Ruchi Soya FPO is giving new strength to the edible oil segment of the FMCG market and Adani Wilmar is getting a margin benefit of 14 per cent on its unsold inventory due to the jump in palm oil prices.
Technical support to Adani Wilmar at current levels
Ravi Singh, Vice President and Head (Research), Share India Securities, said, “Adani Wilmar shares are driving strong fundamentals and technical support at current levels. All its technical indicators like RSI, MACD, Oscillators and MAS are supporting the upside on a daily basis. The company’s stake in Staples and efforts to acquire regional rice brands and processing units in several states are also boosting the stock.
Results of this quarter can be good
Ravi Singhal, Vice Chairman, GCL Securities said, “Adani Wilmar is benefiting from Ruchi Soya’s FPO in the short term as it has given a new boost to the edible oil segment of the FMCG business. The firm is getting margin benefit on its unsold inventory of oil due to the firmness of 14 per cent in palm oil prices in the recent past. This uptrend in palm oil is expected to continue, which should lead to good quarterly results for the company.”
Wait for 15-20 profit booking before investing
Anuj Gaur, Director (IBBM), Money Makers Securities, said, “In countries like India, where the population is continuously increasing and the urban culture is expanding rapidly, the demand for ready-to-cook foods will increase rapidly. This is one possible reason for the rise in Adani Wilmar’s stock. However, one should not buy this stock at current levels and wait for profit booking of around 15-20 per cent.”
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