Top Broking Firm Places "Buy" On Midcap Adani Stock For 38% Upside, Stock Rallies 4%

KR Choksey has a "Buy" on Adani Wilmar Ltd, a midcap Adani Group stock. The brokerage has assigned a target price of Rs 569/share on the stock. If you purchase the stock at the current market price, it could fetch a return of up to 44% from its current level. It is a leading FMCG-food company in India with a market capitalisation of Rs 51,668.72 crore.

Adani Wilmar Stock Overview and Returns

The share price of Adani Wilmar is Rs 413.45/share, up 4% as compared to its previous close. The stock hit its 52 week high on 28 April 2022 at Rs 878/share and 52 week low on 22 February 2022 at Rs 305/share, respectively.

The stock was listed on 8 February 2022. It gave 52.84% positive return since its listing. It declined 5.07% in the past 1 week, 30.66% in the past 1 month and 40.49% in the past 3 months, respectively. However, it gained 3.57% in the past 3 years.

KR Choksey says "Buy" for a target price of Rs 569/share

According to the brokerage, Adani Wilmar has shown strong volume growth in Food and FMCG and Industry Essentials with market share gains in Edible oil, Atta and Rice. "The share price has been declining due to various news and reports about the Adani Group; however, we believe that this is temporary and the company will perform well because of the company's strong and sustainable volume growth. AWL's focus on penetration-led growth and increasing its reach is yielding results for the company. We like the company's strategy of penetrationled growth, focus on the international market, increasing distribution reach, timely capacity addition to supporting the growth, new product launches, and acquisition of the Kohinoor brand," the brokerage has said.

It added, "We expect Adani Wilmar to benefit from the recent uptick in demand. Currently, the stock is trading at a PE multiple of 64.8x/41.9x/34.6x based on our FY23E / FY24E / FY25E EPS estimates, respectively. We assign a PE multiple of 50x to FY25 EPS of INR 11.4 an revised our target price of INR 569/share(Previous TP: 751) and change our recommendation from ACCUMULATE to BUY with an upside of 44.4% over the CMP."

Disclaimer

The stock has been picked from the brokerage report of KR Choksey. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.