Accumulate Adani Wilmar; target of Rs 410: KR Choksey

KR Choksey recommended accumulate rating on Adani Wilmar with a target price of Rs 410 in its research report dated August 06, 2024.

Broker Research

August 07, 2024 / 12:33 IST

Accumulate

KR Choksey's research report on Adani Wilmar

In Q1FY25, AWL’s revenue stood at INR 14,686 Mn, up 9.6% YoY/+7.0% QoQ, which slightly missed our estimate by 1.3%. The Company's sales volume surged notably in Edible Oils +12.0% YoY/+0.7% QoQ and Foods +42.0% YoY/+16.6% QoQ), buoyed by the expanded retail presence. However, Industry Essentials experienced a volume decline of -6.0% YoY/(+20.9% QoQ). The YoY IE volume decline was primarily due to a 22.0% decrease in the oil meal business. In Q1FY25, EBITDA stood at INR 6,189 Mn, which increased by 374.6% YoY/+73.4% QoQ, outperforming our estimates. Net profit reached INR 3,132 Mn (+296.9% YoY/+99.8% QoQ) on the back of improved branded mix, outperforming our estimates.

Outlook

We revise our FY25E/FY26E Adj. EPS estimate by +14.2%/+15.3%, assuming consistent volume growth and a focus on premiumization will support further growth and profitability. We maintain a P/E multiple of 45.0x, leading to a target price of INR 410 per share (previously: INR 357). We maintain our ‘ACCUMULATE’ rating on Adani Wilmar Ltd.

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