May22 , 2022

adani wilmar: Market Movers: Adani Wilmar rebounds after 35% fall in 8 sessions



NEW DELHI: Adani Group stocks have emerged as multibaggers over the last few years for D-Street investors and so was the case for its most recently-listed member — — until it went into a freefall post its March quarter numbers. On Wednesday, the spell finally broke.

Investors returned to lap up the shares following a correction in the stock. In eight sessions, wherein it touched the lower circuit for six, shares of Adani Wilmar tanked nearly 35 per cent.

“Adani Wilmar aspires to become a leading packaged food and FMCG company in India and it gets significant benefit from its parent Adani Group and JV partner Wilmar International.

We believe it is in a sweet spot to take advantage of the prevailing opportunities and can grow multifold,” brokerage KR Choksey said in a note on May 9 when it initiated coverage on the stock with ‘accumulate’ and a target price of Rs 734.

The stock ended 5 per cent higher at Rs 612.

Buying on Buyback news

The announcement of buyback consideration by the company board in the upcoming meeting drove shares of smallcap Asahi Songwon Colours higher by 3 per cent.

The company, in a filing, said the Board of Directors is scheduled to be held on Thursday, May 19, to consider the financial results of the company, final dividend on equity shares and proposal for buyback of shares.

The company has risen 9 per cent in the last three months when the broader markets have been a decline. Today, the stock settled at Rs 294.40, up 2.87 per cent.

Big order win for this smallcap

Shares of smallcap industrial equipment maker Texmaco Rail & Engineering rose 2 per cent in an otherwise weak market as it bagged a Rs 6,450 crore order from the Indian Railways.

The company, whose market cap is Rs 1,505 crore, has to execute the order for 20,067 wagons over a period of three years. The stock has risen in three of the last four sessions, rising nearly 8 per cent during the period.

On BSE, it settled the day at Rs 46.75, up 1.96 per cent.

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