Accumulate Adani Wilmar; target of Rs 373: KR Choksey

KR Choksey recommended accumulate rating on Adani Wilmar with a target price of Rs 373 in its research report dated October 29, 2024.

Broker Research

October 30, 2024 / 10:27 IST

accumulate

26 Aug, 2025 12:21

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KR Choksey's research report on Adani Wilmar

For Q2FY25, the revenue increased 17.9% YoY (+2.1% QoQ) to INR 144,605 Mn, which is in line with our estimate of 0.8%. The Food & FMCG segment recorded a strong revenue growth of 34.0% YoY (+12.1% QoQ), fueled by increased outlet penetration, and repeat purchases of food products. EBITDA increased 294.1% YoY (-8.5% QoQ) to INR 5,662 Mn, which missed our estimate mainly due to higher-than-expected operating expenses. EBITDA margin improved by 274 bps YoY (-45 bps QoQ) to 3.9%. Adj. net profit increased 302.8% YoY (-0.7% QoQ) to INR 3,110 Mn, missed our estimate. We lower our FY25E/FY26E Adj. EPS estimate by 3.6%/9.0%, on the back of lower-than-expected Q2FY25 performance, inflationary pressures and difficulties in implementing price increases.

Outlook

We maintain a P/E multiple of 45.0x, leading to a target price of INR 373 per share (previously: INR 410). We maintain our ‘ACCUMULATE’ rating on Adani Wilmar Ltd.

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