Patanjali's Competitor: This Adani Group Stock Rallied and Hit the Upper Circuit on Friday—Here’s Why
Turnaround Story: Net Profit Surged by over 950 per cent in Q1 FY25.
Shares of Adani Wilmar (AWL) surged 10 per cent and hit the upper circuit during Friday's trading session, backed by high trading volumes. This rise follows the approval by Adani Enterprises (AEL) to demerge its food FMCG (fast-moving consumer goods) business into AWL, along with transferring AEL’s strategic investment in Adani Commodities LLP.
The food FMCG business has become self-sufficient, showing strong performance and growth potential under Adani Wilmar. For Adani Enterprises, this restructuring is expected to enhance shareholder value and allow a more focused approach to nurturing its developing businesses, according to a media release.
On Thursday, the boards of Adani Enterprises Ltd and Adani Wilmar Ltd, both part of the Adani Group, approved a scheme under which AEL will transfer its 43.94 per cent stake in AWL to its shareholders. As a result, AEL shareholders will directly hold shares in AWL. After the demerger, Adani Enterprises Ltd shareholders will receive 251 shares of Adani Wilmar for every 500 shares of AEL.
On Friday shares of Adani Wilmar closed at around Rs 383 per share. The company’s current market capitalization stands at Rs 49,777.69 crore.
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As per the Quarterly Results, in Q1 FY25, Adani Wilmar recorded a revenue of Rs 13750 crore. The operating profit for Q1 FY25 stood at Rs 609 crore along with an operating profit margin of 4 per cent. The net profit for Q1 FY25 stood at Rs 324 crore compared to a loss of Rs 38 crore last year same quarter representing a gain of over 950 per cent YoY. Looking at the annual performance, the company generated a revenue of Rs 49243 crore in FY24. The operating profit for FY24 was Rs 1141 crore with a net profit of Rs 278 crore compared to a net profit of Rs 607 crore in FY23.
Investors must keep this Mid-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.