Adani Wilmar share price hit lower circuit for the third straight session on Friday, tumbling 26 per cent in five trading sessions. The stock hit a fresh 52-week high of Rs 878.35 apiece last week on Thursday, since then the stock has been charting a downward trajectory, with market capitalisation falling below Rs 85000 crore. Adani Wilmar posted a 25.6 per cent on-year decline in consolidated net profit to Rs 234.29 crore in the March quarter due to a steep increase in raw material prices.
Adani Wilmar shares have surged 141 per cent since listing after being priced at Rs 230 apiece in IPO and have gained 6.13 per cent in one month. Technical analysts said that the stock had an unabated move from Rs 400 to the high point near Rs 840. Presently, it is seeing an equally sharp correction. “From the technical perspective, the most immediate support is at 630, then way below at 580. Given the short trading history of this stock, it has not formed any major pattern on the chart except such pattern points which may act as support,” Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services, told FinancialExpress.com
Ravi Singh, VP & Head of Research, Share India Securities said that Adani Wilmar stock has been put under surveillance (ASM) due to which investors are booking their profits and exiting the positions from the stock. “The stock may see more selling pressure due to overall weakness in the market and may touch the level of 600 in coming trading sessions,” Singh told FinancialExpress.com
Earlier this week, Adani Wilmar announced the acquisition of the renowned Basmati Rice brand ‘Kohinoor’ from McCormick Switzerland GMBH. This acquisition would give Adani Wilmar exclusive rights over the brand ‘Kohinoor’ basmati rice along with ‘Ready to Cook’, ‘Ready to Eat’ curries and meals portfolio under the Kohinoor Brand umbrella in India.
Last month, Edelweiss Research said that sunflower oil shortage, arising out of the Russia-Ukraine conflict, could be a near-term risk for Adani Wilmar.
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