08 Jul , 2024 By : Debdeep Gupta
Shares of Adani Wilmar rose over 4 percent on July 8 after the Adani Group firm shared its business updates for the fiscal first quarter (Q1FY25).
Adani Wilmar stock has a one-year beta of 0.9, indicating very low volatility during the period.
The FMCG firm reported a 13 percent on-year growth in volumes in the June quarter. Its edible oil segment growth climbed 13 percent YoY in volumes and 10 percent YoY in value.
The Food & FMCG segment rose 46 percent in volume and 45 percent in value, while the industry essentials segment de-grew 8 percent in volumes but saw flattish growth in value terms, Adani Wilmar said in a regulatory filing.
Segment-wise, Adani Wilmar said its edible oil business thrived due to robust execution in sales and distribution, bolstered by the ongoing efforts to improve retail penetration.
This came despite the challenges in the industry during the quarter, including decreased out-of-home consumption and seasonal dips in summer demand.
“The company is actively pursuing substantial opportunities by executing strong sales and distribution strategies in general trade. Moreover, our alternate channels (e-com, Quick Commerce, MT) maintained their momentum with a 19 percent YoY volume growth in Q1," the company said in its Q1 business update.
"The volume of our branded exports increased by 36 percent YoY in Q1,” it added.
Adani Wilmar's revenue from branded products in the domestic market has consistently grown at a rate exceeding 30 percent YoY for the past eleven quarters. The company anticipates that strong growth in food volume will persist, it said in an exchange filing.
At 1:06 pm, Adani Wilmar stock was trading 2 percent higher at around Rs 339.90 on the National Stock Exchange (NSE). So far in the day, a total of 25 lakh shares changed hands on BSE and NSE combined, higher than the 1-week and 1-month average trading volume of 14 lakh shares.
Technically, the stock is trading higher than the 5-day, 10-day, 20-day, and 50-day moving averages but lower than the 100-day, 150-day, and 200-day moving averages.
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