Subscribe to Adani Wilmar: Arihant Capital

Arihant Capital IPO report on Adani Wilmar

Adani Wilmar Ltd. (AWL) is one of the largest FMCG companies in India, offering a variety of household products like edible oil, wheat flour, rice, pulses, sugar, and soap products across a range of brands. Their most prevalent (flagship) brand is ‘Fortune’ under which the company sells edible oils. AWL’s portfolio can be broadly classified into: : (i) edible oil, (ii) packaged food and FMCG, and (iii) industry essentials. The first two categories accounted for 73% of AWLs sales in FY21.

Valuation and Outlook

At the upper price band of INR 230, the company is valued at a P/E multiple of 36x based off it’s FY21 EPS share of INR 6. The company has cemented its market leadership in the edible oil industry in India and has consistently been churning profits since FY19. We Recommend that investors Subscribe to the issue as the company has a promising growth trajectory enforced by its capable management and constant product innovation.