Large Cap Adani Group Stock Showing Upside Potential, Likely To Give 30% Return, Buy: KR Choksey

Leading brokerage firm KR Choksey initiates coverage on Adani Wilmar Ltd. with a "Buy" recommendation. The brokerage has assigned a target price of Rs. 515/share to the stock. With the given target price, the stock is likely to give up to 30% returns if purchased at the current market price.

Valuation and view

According to the KR Choksey, Adani Wilmar has shown a strong growth volume growth in Food and FMCG and Industry Essentials with market share gains in Edible oil, Atta and Rice. AWL's focus on penetration-led growth to yield better results.

"We like the company's strategy of penetration-led 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. Currently, the stock is trading at a PE multiple of 50.9x and 38.5x based on our FY24E / FY25E EPS estimates, respectively," the brokerage firm has said.

It added, "Though management expects a revival of demand from the rural and institutional side, we believe that this revival might be slower than expected, also the exemption removal of TRQ has a an impact on the overall margins. Hence we arrived at target price of INR 515/share (earlier it was INR 569/share) with an assigned P/E multiple of 50.0x to FY25E EPS of INR 10.3 and kept our recommendation as "BUY" with an upside of 29.7% over the CMP."

Current Market Price, 52 Week Low/High, Returns

Adani Wilmar's Stock last traded at Rs. 397/share, down 0.50% from its previous of Rs. 399/share. The stock traded its 52 week high on 23 September 2022 at Rs. 841.70/share and 52 week low on 28 February 2023 at Rs. 327.25/share, respectively.

In 1 week, it has fallen 3.61%. In the past 3 months, it has fallen 0.74%. The stock has fallen 41.63% in the past 1 year. Stock jumps 48% since its listing on February 08, 2022.

About - Adnai Wilmar Ltd.

Adani Wilmar is Adani Group's leading Fast-Moving Consumer Goods (FMCG) sector stock. The company operates in India and offers most of the essential kitchen commodities for Indian consumers, including edible oil, wheat flour, pulses, rice, and sugar. It is a large-cap stock with a market capitalisation of Rs. 51,597.24 crore.

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.