JPMorgan maintains 'Underweight' rating on Adani Wilmar; share tanks 8%

Adani Wilmar share price: Fast moving consumer goods (FMCG) player Adani Wilmar’s stock faced a stormy end to 2024, tumbling 7.83 per cent during the final trading session to hit an intraday low of Rs 303.70 per share. 

 

The sharp decline was triggered by reports revealing that JPMorgan, the New York-based financial giant, maintained its 'Underweight' rating on the stock for a target price of Rs 320, which reflects a 3 per cent downside from its previous closing value of Rs 329.50 on December 30, 2024.

 

Adding to the intrigue, Adani Enterprises (AEL) on Monday, announced its plans to divest its entire 44 per cent stake in Adani Wilmar. The stake sale, set to occur in two phases, is projected to generate a massive $2.2 billion (Rs 18,817 crore) for the Adani Group. This pivotal move not only marked a strategic shift for AEL but also left the market speculating about the future trajectory of one of India’s leading FMCG players.

 

In an exchange filing, Adani Wilmar said, “We wish to inform you that Adani Commodities, Adani Enterprises and Lence Pte, a wholly-owned subsidiary of Wilmar International Limited (Lence), have entered into an agreement , in terms of which ACL and Lence have agreed to grant a simultaneous right of call option and put option to each other to have the option to exercise such a right for purchase and sale of all shares held by ACL at the time of exercise of such option up to a maximum of 403,739,517 equity shares constituting 31.06 per cent of the paid-up equity share capital of Adani Wilmar Limited (Shares), at a price to be mutually agreed by the parties in writing, provided that such price per share shall not exceed Rs 305, in accordance with the terms set out in the Agreement.”

 

The proceeds from the stake sale will be channeled into strengthening Adani Enterprises’ core infrastructure ventures across energy, transport, logistics, and primary industries. The strategic move, the company stated, aims to reinforce its position as India’s premier incubator for growth-focused platforms.

 

Adani Wilmar financial performance

 

Adani Wilmar reported a consolidated net profit of Rs 311 crore in the September quarter of financial year 2025 (Q2FY25), as against a net loss of Rs 130.7 crore in the September quarter of financial year 2024 (Q2FY24).

 

The company’s revenue from operations zoomed 17.9 per cent Y-o-Y to Rs 14,460.5 crore in Q2FY25. The firm reported a profit before tax of Rs 401.9 crore in Q2FY25.

 

At the operating front, Adani Wilmar’s earnings before interest, tax, depreciation and amortisation skyrocketed 325 per cent annually to Rs 612 crore in Q2FY25, from Rs 144 crore in Q2FY24.

 

About Adani Wilmar

 

Adani Wilmar Limited (AWL), established in January 1999, is a joint venture between the Adani Group of India and the Wilmar Group of Singapore. As one of India’s largest fast-moving consumer goods (FMCG) companies, Adani Wilmar is a key player in the processing of crude palm oil and has built a robust portfolio spanning edible oils, food staples, and industrial essentials.

 

The company offers a diverse range of products, including soya, sunflower, groundnut, mustard, and rice bran oils, as well as basmati rice, pulses, soya chunks, besan, sugar, and wheat flour. 

 

The FMCG giant also manufactures soaps under the Alife brand and provides industry essentials such as oleochemicals, castor oil derivatives, and de-oiled cakes. Its well-recognized brands include Fortune, King's, Raag, Bullet, Fryola, Jubilee, Aadhar, and Kohinoor.

 

The market capitalisation of Adani Wilmar is Rs 39,822.15 crore, according to BSE. The company falls under the BSE 200 category.

 

At 9:38 AM, the Adani Wilmar share was trading 7 per cent lower at Rs 306.40 per share. In comparison, BSE Sensex was trading 0.41 per cent lower at 77,929.14 levels.