Adani Wilmar share hits upper circuit for 5th straight day. Rises 125% this year
Premium- Multibagger stock: Adani Wilmar share price is backed by strong fundamentals and technical support at current levels, say stock market experts
Multibagger stock: Adani Wilmar shares are one of the multibagger stocks in 2022. This Adani group share has delivered more than 125 per cent in year-to-date (YTD) time. However, the stock is still in 'uptrend' and it has hit upper circuit for fifth straight session in early morning deals.
Adani Wilmar share price today opened with an upside gap of near ₹18 per share and went on to climb to its new all-time high of ₹608.90 levels, hitting 5 per cent upper circuit today.
According to stock market experts, rising commodity prices, especially palm oil price, geopolitical tension and Sri Lanka crisis has made street observers highly bullish on the stock for short term. They said that RM seed output is also expected to come lower that will help the company to cash-in margin benefit from its currently available buffer stock. They went on to add that recent geopolitical tension and Sri Lanka crisis may create new business opportunity.
Speaking on the short term positive sentiments in regard to Adani Wilmar share price; Ravi Singhal, Vice Chairman at GCL Securities said, "Due to Russian invasion of Ukraine, edible oil supply system has been hit badly and market is expecting Adani Wilmar Ltd to fill that gap as edible oil prices have gone very high in European countries these days. Now, there is Sri Lanka crisis as well and Indian government has already started sending edibles to the island nation. In such condition, these developments outside Indian border is expected to give huge business opportunity to this Adani group company. Apart from this, palm oil and other commodity prices have been soaring and the company has good buffer stock to counter the rising raw material prices. It may help improve company's EBITDA in upcoming quarterly results."
Ravi Singhal of GCL Securities said that outlook for RM seed output is expected to go down, which will lead to rise in its price. But, the company has enough buffer stock to meet its internal demand and get margin benefit on it as well.
On fundamental and technical factors fueling Adani Wilmar share price; Ravi Singh, Vice President & Head of Research at Share India Securities said, "Adani Wilmar share price is backed by strong fundamentals and technical support at current levels. All its technical indicators like RSI, MACD, Oscillators and MAS are supporting the bull run on daily basis. The company’s recent bet on staples and scouting for acquisition of regional rice brands and processing units in several states of the country, has added more fuel to the rise."
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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