MygoalMySip

  • Mutual Funds
    • Mutual Funds
    • Equity Fund
    • Debt Fund
    • Hybrid Fund
  • Stocks
    • Stocks
    • Large Cap
    • Mid Cap
    • Small Cap
  • Personal Finance
    • Personal Finance
    • Savings
    • Tax
Menu
  • Mutual Funds
    • Mutual Funds
    • Equity Fund
    • Debt Fund
    • Hybrid Fund
  • Stocks
    • Stocks
    • Large Cap
    • Mid Cap
    • Small Cap
  • Personal Finance
    • Personal Finance
    • Savings
    • Tax
My-Goal-My-Sip-Final-Logo
Search
Close
My-Goal-My-Sip-Final-Logo
  • Mutual Funds
    • Mutual Funds
    • Equity Fund
    • Debt Fund
    • Hybrid Fund
  • Stocks
    • Stocks
    • Large Cap
    • Mid Cap
    • Small Cap
  • Personal Finance
    • Personal Finance
    • Savings
    • Tax
Login or Sing up

Adani Wilmar: Should You Invest?

February 7, 2022
in Learn, Personal Finance, Stocks
adani

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.
HeadquarterAhmedabad, Gujrat
SectorFMCG Sector
Area of OperationThe company’s distributors are in 28 states and 8 union territories throughout India, catering to over 1.6 million retail outlets.
CEO & MDAngshu Mallick (Working with the company in different positions for the past 23years)
ChairmanKuok 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-17Mar-18Mar-19Mar-20Mar-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-17Mar-18Mar-19Mar-20Mar-21
Share Capital114114114114114
Reserves11661540190522982952
Borrowings26222244182923001904
Trade Payables2993514166151332946
Advance from Customers3839367858
Other liability items43457089155047100
Total Liabilities7,3679,64911,39011,62713,075
Fixed Assets19502273295437593702
CWIP70443570325531
Investments52535455106
Inventories28963748404238264778
Trade receivables842121212629211515
Cash Equivalents8941060118914161188
Loans n Advances687758109412081205
Other asset items-2510222611550
Total Assets7,3679,64911,39011,62713,075

Financial Ratios: Adani Wilmar

Stock Price:

1. Asked PriceRs 230
2. Market CapRs 30,000 Cr
3. Lastest GMPRs 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 Wilmar44.66
2. Industry– 
4. Marico Ltd51.85
3. Ruchi Soya Industries28.54
5. Ajanta Soya Ltd10.57

ROCE Ratio:

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

1. Company’s ratio: Adani Wilmar24.0%
2. Industry21.40%
4. Marico Ltd44.85%
3. Ruchi Soya Industries12.07%
5. Ajanta Soya Ltd61.04%

ROE Ratio:

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

1. Company’s ratio: Adani Wilmar23.90%
2. Industry26.70%
4. Marico Ltd33.97%
3. Ruchi Soya Industries20.78%
5. Ajanta Soya Ltd47.77%

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.

Read Next: Future with FAANG

For more information, reach us at [email protected]

Team, MyGoalMySip.

ShareTweetPin

Related Posts

Adani Group: Mutual Fund Holdings
Stocks

Adani Group: Mutual Fund Holdings

Data as of 31.12.2022 Almost all the Adani stocks have seen reduced holdings, barring a few: 1. Adani Power: Only...

January 28, 2023
crypto
Personal Finance

Crypto Crash

2022 has not been a very great year for crypto investors, as we set foot in 2023 it's pertinent for...

January 28, 2023
layoff
Personal Finance

How to be financially prepared for the “layoff season”?

Most of us, or even someone we know, have gone through a layoff at some point in our lives. Regardless...

December 6, 2022
RBI’s Central Bank Digital Currency (CBDC)
Personal Finance

RBI’s Central Bank Digital Currency (CBDC)

CBDC or Central Bank Digital Currency is legal tender in digital form, which means it holds the same value as...

December 6, 2022
Next Post
acc

ACC Ltd.: Should You Invest?

FASHION

Vedant Fashion IPO: Should you invest?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

etf

Gold ETF vs Gold Mutual Fund.

January 28, 2022
bank

Banking in Metaverse

November 3, 2022
index

ETF’s vs. Index Funds

January 19, 2022
equity

Equity investments may screw your short-term financial goals.

January 19, 2022

subscRibe!

Categories

  • Books
    • Monthly Journal
  • Debt Fund
  • Equity Fund
  • Hybrid Fund
  • Large Cap
  • Learn
  • Mid Cap
  • Mutual Funds
  • Personal Finance
  • Savings
  • Small Cap
  • Stocks
  • Tax
  • Uncategorized

Instagram

About Us

MyGoalMySip is an Online Mutual fund investment platform powered by Prudent Wealth. As an investor, it might be hard to find the perfect investment opportunity; therefore, we’re here to help you make an informed decision.

Our goal is to educate people and make them financially literate, and at the same time guide you in your investment journey, in short MyGoalMySip is your investment buddy.

Read More
Facebook Twitter Youtube Linkedin

Quick Links

  • Books
  • Learn
  • Monthly journal
  • Merchandise

    Copyright © 2023 MygoalMySip | All Rights Reserved

    About Us

    MyGoalMySip is an Online Mutual fund investment platform powered by Prudent Wealth. As an investor, it might be hard to find the perfect investment opportunity; therefore, we’re here to help you make an informed decision.

    Our goal is to educate people and make them financially literate, and at the same time guide you in your investment journey, in short MyGoalMySip is your investment buddy.

    Read More
    Facebook Twitter Youtube Linkedin

    Quick Links

    • Books
    • Learn
    • Monthly journal
    • Merchandise

      Copyright © 2023 MygoalMySip | All Rights Reserved