Adani Wilmar Crosses 1 Lakh Crore in MCap After Surging 247% Since Listing

Adani Wilmar Elite became the latest entry in the Rs 1 lakh crore market cap club as the stock touched a high of Rs 798 on Tuesday and rose five per cent from the previous close. Shares have risen 247% since the February 8 listing in Adani Wilmar IPO after a price of Rs 230 per piece and have risen 54% this month.

This development has taken place since Adani Power entered the same club yesterday. Other group firms joining the Rs 1 lakh crore club include Adani Green Energy, Adani Transmission, Adani Total Gas, Adani Enterprises, and Adani Ports and Special Economic Zones.

Adani Wilmar’s fortunes have improved since the list of edible oils was high. Analysts say that because of the supply of sunflower oil due to the Russia-Ukraine war, consumers are blocking alternatives such as soybean, peanut and mustard oil.

Will Indonesia’s Palm Oil Exports Hurt Adani Wilmar Rally?

Indonesia, one of the largest exporters of palm oil to India, has proposed a ban on palm oil exports from April 28. India gets about 45% of its annual palm oil requirement from Indonesia.

Indonesia’s recent proposal to ban palm oil exports from April 28 will push up edible oil prices, which are already on the rise due to the ongoing war between Russia and Ukraine.

The announcement of an export ban until further notice is aimed at curbing edible oil prices in Indonesia’s domestic market. India gets 45% of its annual palm oil needs from Indonesia. The ban is likely to increase margins for home-grown edible oil producers such as Adani Wilmar, which will positively affect sentiment in the stock market.

Santosh Mina, Head of Research, Swastika Invest Mart Ltd. “Ukraine’s war has pushed up commodity prices around the world, Ukraine is the largest exporter of oilseeds like sunflower, and soybean seeds have pushed up edible oil prices,” said Adani Wilmar. Indonesia’s ban on palm oil exports and Malaysia’s export tax will further squeeze the supply of oil. Benefited. The company will benefit through windfall. Review of unsold inventory. Furthermore, this situation will improve the gross margin of the company. Due to these factors, the company has finally crossed Rs. 1 lakh. The level of market cap, however, we advise investors to be cautious as the stock has gone far beyond its basic principles.

What do analysts say about Adani Wilmar?

The company entered a quiet market on February 8. Shares of Adani Wilmar were listed at Rs. The issue price of IPO was Rs. 230.

Domestic brokerage Advice Research believes that the stock may run out of steam. It has started coverage on the stock in the next 12 months with a hold and a target price of Rs 559. Edelweiss Research said that while the company is showing strong growth, the following stock listing gains indicate that its price is pre-determined.