Adani Wilmar share price soars 7% on acquisition of GD Foods; check details

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Adani Wilmar share price: Shares of Adani Group's fast-moving consumer goods (FMCG) company Adani Wilmar (AWL) were buzzing in trade on Wednesday, March 5, 2025. The company's share price jumped 6.66 per cent to a day's high of Rs 255.85 per share on the National Stock Exchange (NSE) during the intra-day deals on Wednesday.

 

The surge in Adani Wilmar's share price follows the company's announcement that it has signed a definitive agreement to acquire G.D. Foods Manufacturing (India) Private Limited (GD Foods). "The acquisition will be executed in multiple tranches, with 80 per cent of the shares to be acquired in the first tranche, and the remaining 20 per cent to be acquired over the next three years," said Adani Wilmar in a release.

 

Commenting on the acquisition, Angshu Mallick, MD & CEO of Adani Wilmar, said, “As the market evolves, there is a clear need for trusted national food FMCG brands to deliver high-quality, affordable products that fulfill the essential needs of Indian kitchens. Delivering on this requires best-in-class manufacturing operations and a broad distribution reach, both of which are key strengths of AWL. The acquisition of GD Foods aligns with our vision and will significantly enlarge AWL’s offerings to meet the evolving needs of Indian households."

 

According to the release, the acquisition is subject to meeting customary closing conditions, with the first tranche expected to close in 60 days.   READ: Why Indian stock markets rallied despite Trump's reciprocal tariff threat?

 

Jeffries on Adani Wilmar

The global brokerage firm, Jefferies, has initiated coverage on the Adani Wilmar stock with a 'Buy' rating for a target price of Rs 370 per share. Kunal Shah and Vivek Maheshwari, equity analysts at Jefferies, forecast a 20 per cent like-for-like earnings per share compound annual growth rate (LFL EPS CAGR) over FY24-27E and note that low margins are a characteristic of the category. Despite this, high asset turnover drives return on capital employed (RoCE) well ahead of the cost of capital.

 

"AWL has built a strong moat in branded staples (oil, foods) led by its large scale, ability to process >6 million MT of volumes per year, pan-India distribution, the well-known Fortune brand, and strong buy-in from the parent," wrote the analysts, in a research note.

 

While margins are low for the category, analysts said, turns are high, resulting in decent return ratios (mid-to-high teens), and they projected that Adani Wilmar is well-placed to grow volumes in double digits, with the foods business growing at a >20 per cent CAGR.

 

Valuations, they said, are reasonable (25x FY26E PE), with Adani Wilmar set to take over.  About Adani Wilmar

  A joint venture between Adani Group of India and Wilmar Group of Singapore, Adani Wilmar (AWL) is one of the largest consumer food FMCG companies in India. The company has a diversified product portfolio offering most of the primary kitchen essentials, including edible oil, wheat flour, rice, pulses, besan, and sugar, with market-leading positions across products. AWL has 24 plants in India, which are strategically located across 10 states, comprising 10 crushing units, 19 refineries, and food capacities.

 

Adani Wilmar has a market capitalisation of Rs 86,925.26 crore on the NSE as of March 5, 2025. The company is also a constituent of the Nifty Next 50 on the NSE.

 

Adani Wilmar shares have a 52-week range of Rs 403.95 - Rs 231.55 on the NSE. The company’s share price has dropped nearly 6 per cent in the last one month and around 30 per cent in the last six months.  READ: Power Grid Corporation bags new projects, share price rise 3%; details here

 

Adani Wilmar shares continued to trade higher on the bourses. At around 11:29 AM on Wednesday, the company's shares were trading at Rs 254.14 apiece, up 5.95 per cent from the previous close of Rs 239.87 on the NSE.

 

At the same time, the benchmark equity indices were also trading higher. The BSE Sensex traded higher by 588 points, or 0.81 percent, at 73,578 levels, while the Nifty 50 traded 203.62 points, or 0.92 per cent higher, at 22,286 levels.