About the company:

Adani Group and the Wilmar Group formed a joint venture in Singapore in 1999. It is a fast-moving consumer goods (FMCG) food company that supplies most of the essential kitchen commodities to Indian consumers, including edible oil, wheat flour, rice, lentils, and sugar. The company provides a wide range of market needs in addition to oleochemicals, castor oil and its derivatives, and de-oiled cakes. “Fortune,” Adani Wilmar’s flagship brand, is by far the most recognized edible oil in India.

Adani Wilmar is an FMCG food company offering most of the essential kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses, and sugar. Their distributors are in 28 states and 8 union territories throughout India, catering to over 1.6 million retail outlets. As of September 30, 2021, the company had 88 depots in India, with an aggregate storage space of approx. 1.8 million square feet across the country.

Comparative Advantages:

• Strong brand recognition and a substantial client base.
• In India, they are the industry leader in branded edible oil and processed foods.
• Strong raw material sourcing capability from leading worldwide vendors.
• An integrated business model with a solid operational framework and production capability.
• A solid distribution infrastructure supports the Pan-India distribution network.

Headquarter	Ahmedabad, Gujrat
Sector	FMCG Sector
Area of Operation	The company’s distributors are in 28 states and 8 union territories throughout India, catering to over 1.6 million retail outlets.
CEO & MD	Angshu Mallick (Working with the company in different positions for the past 23years)
Chairman	Kuok Khoon Hong (Co-founder and CEO of Wilmar International Limited
Subsidiaries	• Awn Agro Private Limited
Competitors	• Ruchi Soya Industries (Rs 25,000 Cr) • Marico Ltd (Rs 60,954 Cr) • Ajanta Soya Ltd (Rs 471 Cr)
Shareholding pattern	•Pre Issue Promoters Share Holding 100% •Post Issue Promoters Share Holding 87.92%

IPO Details: Adani Wilmar

Details	•IPO date: Jan 27,2022 to Jan 31,2022 •Price band: Rs218-Rs230 •IPO listing date: February 8, 2022
Objectives of issue	•Funding capital expenditure for expansion of existing manufacturing facilities and developing new manufacturing facilities (“Capital Expenditure”); •Repayment/prepayment of borrowings; •Funding strategic acquisitions and investments; and •General corporate purposes.

Profit and Loss Statement

Standalone P&L:

	Mar-17	Mar-18	Mar-19	Mar-20	Mar-21
Revenue from Operations	22,973	26,354	28,802	29,657	37,090
Expenses	22,330	25,433	27,703	28,345	35,763
Operating Profit	643	921	1,100	1,312	1,328
Profit before tax	348	566	570	609	757
Net Profit	230	375	365	395	655

Standalone Balance Sheet

	Mar-17	Mar-18	Mar-19	Mar-20	Mar-21
Share Capital	114	114	114	114	114
Reserves	1166	1540	1905	2298	2952
Borrowings	2622	2244	1829	2300	1904
Trade Payables	2993	5141	6615	1332	946
Advance from Customers	38	39	36	78	58
Other liability items	434	570	891	5504	7100
Total Liabilities	7,367	9,649	11,390	11,627	13,075
Fixed Assets	1950	2273	2954	3759	3702
CWIP	70	443	570	325	531
Investments	52	53	54	55	106
Inventories	2896	3748	4042	3826	4778
Trade receivables	842	1212	1262	921	1515
Cash Equivalents	894	1060	1189	1416	1188
Loans n Advances	687	758	1094	1208	1205
Other asset items	-25	102	226	115	50
Total Assets	7,367	9,649	11,390	11,627	13,075

Financial Ratios: Adani Wilmar

Stock Price:

1. Asked Price	Rs 230
2. Market Cap	Rs 30,000 Cr
3. Lastest GMP	Rs 55 (23.91%)

P/E Ratio:

(It indicates the market value of the stock as compared to the company’s earnings)

1. Company’s ratio: Adani Wilmar	44.66
2. Industry	–
4. Marico Ltd	51.85
3. Ruchi Soya Industries	28.54
5. Ajanta Soya Ltd	10.57

ROCE Ratio:

(It basically indicates the profit company is making from its total capital invested)

1. Company’s ratio: Adani Wilmar	24.0%
2. Industry	21.40%
4. Marico Ltd	44.85%
3. Ruchi Soya Industries	12.07%
5. Ajanta Soya Ltd	61.04%

ROE Ratio:

(It basically indicates the profit company is making from its equity invested)

1. Company’s ratio: Adani Wilmar	23.90%
2. Industry	26.70%
4. Marico Ltd	33.97%
3. Ruchi Soya Industries	20.78%
5. Ajanta Soya Ltd	47.77%

Positive Aspects:

• Over 65% of revenue comes from its Oil business.
• AWM has posted increase in net profit at the rate of 33.60%.
• Adani group as a whole has marked remarkable growth so far.
• Its flagship brand “Fortune” is the largest selling edible oil brand in India.
• Its CAGR is in par with its peers.
• Decreased borrowing over the years.

Negative aspects:

• Reduction in Cash Equivalent.
• Slightly overvalued when compared to industry’s & immediate peer’s ratio.
• Better performance than the indutry topper.

Disclaimer: This shouldn’t be construed as a stock recommendation, investors discretion is advised while investing.

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Team, MyGoalMySip.