Shares of multibagger rose 5% to hit an upper circuit of Rs 524.65 on Monday over its previous close of Rs 499.70, breaking its eight-session losing run. Since listing in January 2022, the stock has surged nearly 96%; however, it has corrected about 17% in the last month.
As per Trendlyne data, the highest target price for the stock goes up to Rs 751, while the average target price estimate is Rs 614, which shows an upside potential of 17% from the current market price.
Out of the five analysts covering the stock, three have sell ratings, one has a hold rating and one has a buy rating. In Q2FY23, Adani Wilmar reported a 73.25% year-on-year (YoY) decline in consolidated profit after tax (PAT) at Rs 48.76 crore.
The company’s PAT stood at Rs 182.33 crore in the same quarter of FY22. Its revenue from operations increased 4.36% to Rs 14,150 crore in Q2FY23 from Rs 13,558 crore in Q2FY22. The total expenses of the company increased 6% to Rs 14,149 crore in Q2FY23 from Rs 13,354 crore in Q2FY22.
In the edible oils segment, the quarter saw multiple challenges in consumer demand with several macro headwinds in the form of high inflation, rising interest rates, delayed monsoons, and tepid rural demand.
The company said that it sees positive signs of recovery going forward in the edible oils business for H2FY23, with softening of commodity prices and the recent uptick in demand on the back of festivities and weddings.
In a report last month, KR Choksey said that it likes the company’s strategy of penetration-led growth, focus on the international market, increasing distribution reach, timely capacity addition to supporting growth, new product launches, and acquisition of Kohinoor brand.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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