The market capitalization of Adani Wilmar crossed Rs 1 lakh crore on Tuesday as the company's share jumped 5 percent.
With the recent surge in share price, Adani Wilmar has gained a place among the top 50 Indian companies in terms of market capitalization.
On the day of its share listing on the stock markets on February 8, 2022, the market capitalization of Adani Wilmar stood at around Rs 35,000 crore. It has jumped by around 250 percent in just over two months.
Adani Wilmar share surged 5 percent to Rs 802.80 at the BSE on Tuesday. 5 percent is the daily circuit limit for the company's share trading.
Adani Wilmar, a 50:50 joint venture company between Gautam Adani-led conglomerate Adani Group and Singapore's Wilmar Group, had raised Rs 3,600 crore through an initial public offering (IPO) at the beginning of this calendar year. The company's shares were offered at Rs 230 apiece in the IPO.
Santosh Meena, Head of Research, Swastika Investmart Ltd. on Adani Wilmar, said: The Ukraine war has shot commodity prices higher worldwide, Ukraine being the largest exporter of oilseeds like sunflower, and soybean seeds have pushed the edible oil prices. The Indonesian palm oil export ban and Malaysian export tax will further squeeze the oil supply. This whole problem has skyrocketed edible oil prices in India, benefiting Edible Oil companies like Adani Wilmar. The company will have windfall gains via. Unsold inventory revaluation. Further, this situation will improve the overall margins for the company. Due to these factors the company has finally crossed the Rs. 1 lakh market cap level, however, we advise investors to stay cautious as the stock has moved far ahead from its fundamentals.
(With PTI inputs)
