Adani Wilmar, whose shares got listed on the bourses in February this year, has become the newest member to join the Rs 1 lakh crore market capitalisation club. The company achieved this feat on Tuesday after shares surged 5 per cent on the BSE to hit an all time high of Rs 798 apiece. Adani Wilmar became the seventh group stock to hit Rs 1 trillion (lakh crore) market capitalisation for the first time. Adani Wilmar shares have surged 247 per cent since listing after being priced at Rs 230 apiece in IPO and have gained 54 per cent so far this month. Before today, Adani Wilmar was the only company from the Gautam Adani-led group of companies which was not a part of the Rs 1 lakh crore m-cap club. Now, all seven listed entities of India’s richest and world’s fifth richest person have hit this milestone.
What should investors do?
Santosh Meena, Head of Research, Swastika Investmart: Stay Cautious
“The Ukraine war has shot commodity prices higher worldwide, Ukraine being the largest exporter of oilseeds like sunflower, and soybean seeds have pushed the edible oil prices. The Indonesian palm oil export ban and Malaysian export tax will further squeeze the oil supply. This whole problem has skyrocketed edible oil prices in India, benefiting edible oil companies like Adani Wilmar. The company will have windfall gains via. Unsold inventory revaluation. Further, this situation will improve the overall margins for the company. Due to these factors the company has finally crossed the Rs 1 lakh crore market cap level, however, we advise investors to stay cautious as the stock has moved far ahead from its fundamentals.”
Animesh Malviya, Analyst, CapitalVia Global Research: Hold for long-term
“Adani Wilmar’s stock rose another 5 per cent, breaking the daily circuit limit, hitting a new high of Rs 802.80. When compared to the issue price, the counter has given investors a 250 per cent return. In the previous month, the stock has nearly doubled in value. For medium term investor’s we suggest a target price of Rs 950-1000; seeing the outperformance of the Adani group and strategies we suggest holding it for the long term as it can give a solid return to the long term investors in 1-2 year.”
“Adani Wilmar is one of six listed firms in the Adani Group, which also includes Adani Enterprises, Adani Ports, Adani Power, Adani Total Gas, Adani Green Energy, and Adani Transmission. When compared to the issue price, the counter has given investors a 250 per cent return. In the previous month, the stock has nearly doubled in value.”
Stay invested while trailing exit SL
Investors should stay invested while trailing their exit Stop Loss (SL). The best method to deal with the situation is to stay invested and keep trailing their stoplosses in a way that 75 per cent of their profits stay protected in event of any retracement or consolidation in these stocks, said Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services.
(The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)
