Nuvama Brokerage Assigns 'BUY' Rating to Adani Wilmar, Sets Target Price at ₹424. A potential 36% upside is projected in the stock due to better-than-expected Q4FY25 performance and b volume growth. Long-term investors are expected to benefit.
Adani Wilmar Stock: Indian stock markets witnessed a second consecutive day of decline on Friday, April 4th. This downturn is largely attributed to new import tariffs imposed by US President Donald Trump. The BSE Sensex traded with a fall of over 800 points in early trading, while the Nifty-50 slipped below 23,000. Despite this significant market drop, Nuvama brokerage maintained a positive outlook on Adani Wilmar, an Adani Group company, assigning it a 'BUY' rating for the long term.
Adani Wilmar: Brokerage Target Price ₹424
Nuvama brokerage has set a target price of ₹424 for Adani Wilmar's stock, implying a potential upside of 36%. Adani Wilmar closed at ₹271 on the BSE on Thursday. The brokerage advises investors to bet on this stock, citing the company's b quarterly performance.
Adani Wilmar's Performance Over the Past Year?
Adani Wilmar's stock is currently trading 33% below its 52-week high, but recent months have shown signs of recovery:
Last 1 month: Stock up 11.09%
Last 3 months: Down 19%
Last 1 year: Down approximately 25%
52-week high: ₹404
52-week low: ₹231.55
Market Cap: ₹34,714.42 crore
Q4 Update: Improved Performance Boosts Brokerage Confidence
Nuvama brokerage reports that Adani Wilmar exceeded expectations in the fourth quarter (Q4FY25). This has led to a revised annual revenue growth projection of 36%, up from an earlier estimate of 19%.
Q3FY25: Revenue increased by 31.4%
Q4FY24: Decline of 4.6%
Volume Growth: Now projected at 7% (previously estimated at 5%)
EBITDA Growth: Potential 61% Increase
While the gross margin is expected to decline by 100 basis points to 12.5%, the EBITDA margin is projected to increase by 48 basis points, reaching 3.2%.
FY25 Volume Growth Projected at 10%
The brokerage anticipates a 10% volume growth for the company in the entire fiscal year 2024-25 (FY25).
Edible Oils: 10% growth
Food and FMCG segment: 28% growth
The brokerage recommends that investors maintain confidence in this stock for the long term and reiterates its target price of ₹424.
