Adani Wilmar Stock Rises 4% on Strong Q1 Business Update

On July 8, Adani Wilmar shares rose over 4% following the company's business updates for the fiscal first quarter (Q1FY25). Adani Wilmar's stock has a one-year beta of 0.9, indicating low volatility during this period.

At 1:06 pm, Adani Wilmar share price was trading 2% higher at around ₹339.90 on the National Stock Exchange (NSE). The day's trading volume reached 25 lakh shares on the BSE and NSE combined, surpassing the 1-week and 1-month average trading volume of 14 lakh shares.

The FMCG company reported a 13% year-on-year growth in volumes for the June quarter. Specifically, the edible oil segment saw a 13% YoY increase in volumes and a 10% YoY rise in value. The Food & FMCG segment experienced a 46% increase in volume and a 45% increase in value, while the industry essentials segment saw an 8% decline in volumes but flat growth in value terms.

Adani Wilmar attributed the growth in its edible oil business to robust sales and distribution execution, as well as ongoing efforts to enhance retail penetration, despite industry challenges such as decreased out-of-home consumption and seasonal summer demand dips.

The company highlighted its proactive approach in capturing substantial opportunities by implementing strong sales and distribution strategies in general trade. Additionally, alternate channels like e-commerce, quick commerce, and modern trade maintained momentum with a 19% YoY volume growth in Q1. The volume of branded exports also increased by 36% YoY in Q1.

Adani Wilmar's revenue from branded products in the domestic market has consistently grown by over 30% YoY for the past eleven quarters. The company expects the strong growth in food volume to continue.

Technically, the stock is trading above the 5-day, 10-day, 20-day, and 50-day moving averages, but below the 100-day, 150-day, and 200-day moving averages.

Adani Wilmar Limited is a fast-moving consumer goods (FMCG) company. It offers kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses, and sugar. Additionally, it has branded health and convenience product portfolio that includes Rice Bran oil, Blended oil, soya nuggets, Chana Sattu, biryani kit and khichdi.

Its segments include Edible Oils, Food & FMCG, and Industry Essentials. The Edible Oils segment is engaged in buying and manufacturing edible oils. The Food & FMCG segment is engaged in the buying and manufacturing of food products.