Adani Wilmar has joined the group of companies whose market cap is Rs 50,000 crore on the basis of the sharp rally.
The share price of Adani Wilmar rose 73 percent in three days to Rs 381.80 on Thursday. The stock has gained 66 per cent from its issue price of Rs 230 per share. On the strength of this sharp rally, Adani Wilmar has joined the group of companies whose market cap is Rs 50,000 crore. Analysts say that IPO investors can book profits in the stock at current levels.
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What do experts say
- Ravi Singh, VP and Head of Research, Share India Securities, told Financial Express Online, “A fall in the stock can be a buy, as Adani Wilmar finds it attractive for a long-term investment.” Singh also said that investors can buy on downside for the target of Rs 450-480 in the medium term. Adani Wilmar has raised Rs 3,600 crore through IPO. This IPO got more than 17 times subscription.
- Adani Wilmar is a joint venture between Ahmedabad-based Adani Enterprises and Singapore-based Wilmar International, in which both groups hold half-half. It is an FMCG food company that sells cooking items like cooking oil, wheat flour, rice, pulses and sugar.
- AR Ramachandran, Co-Founder and Trainer, Tips2Trades, told Financial Express Online, “Despite the great listing and buoyancy in stocks, we believe investors should book profits in Adani Wilmar as the stock looks overvalued. Investors can re-enter the stock near 275-290 levels for better returns in the coming months.”
- Amarjeet Maurya, AVP-Mid Cap, Angel One said that at CMP of Rs 382, the stock is trading at 62.2x TTM PE, which is in line with other FMCG companies, giving little room for upside. Maurya further added, “Therefore, we recommend profit booking.”
(Article: Surbhi Jain)
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