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Shares of Adani Group at a Lifetime High: Adani Wilmar Surges by 61% in One Month

Shares of Gautam Adani’s Adani Group went on a roll recently. Adani Power, the electric utilities company of the group, has increased its shares to 92 percent in the past month. At the same time, Adani Wilmar surged by at least 61 percent. 

Adani Enterprises and Adani Total Gas stopped at around 33 percent and 35 percent, respectively. On the other hand, Adani Ports and Special Economic Zone managed to soar by 22 percent, which was closely followed by 15 percent of Adani Green Energy and 7 percent of Adani Transmission. With the exception of Adani Ports and Adani Transmission, the rest of the five stocks were trading at a lifetime high during this period. On the other hand, the S&P BSE Sensex had gained eleven percent in the last month. 

In terms of individual stocks, it seems that Adani Power is still going north. It got locked at ten per cent upper circuit at INR 232.60 on the Bombay Stock Exchange in Tuesday’s trade. 

With the steady 91 percent rise in the past one month, the company’s stocks have risen to 133 percent in the past three months. So, Adani Power had a consolidated net profit of INR 218.49 crore for the third quarter of the financial year 2022. They had a loss of INR 288.74 crore. So, all in all, the total income was INR 5,593.58 crore as opposed to INR 7,099.20 crore in the same time about a year ago. 

AWL (Adani Wilmar) was stopped at the five percent upper circuit at INR 580.21, which is another of its latest highs on the Bombay stock Exchange. It has risen by 61 percent in the past one month. The company has the leading position in the market in terms of kitchen essentials, from rice, wheat flour, to edible oil, and more. 

The growth strategy of the company focuses on scaling up its market share in the present categories, while getting into FMCG segments, trying for more strategic acquisitions that widen geographic and product reach, and better return or margin profile in the medium term. 

In the third quarter, the company reported a 67 percent quarter-on-quarter growth in the consolidated net profit of INR 211 crore for the third quarter ending in 31st December 2021. 

Being the biggest edible oil manufacturer (19 percent share) with an access to the global links of Wilmar (has 44 percent stake) AWL gets major sourcing advantages (better relations with the leading units, suppliers close to the ports). There are also scale and supply chain advantages to domestic peers to make sure that there is an efficient cost structure in this low-margin venture. 

Adani Total Gas is not far behind as it has hit the latest high of INR 2,540, which is a three percent rise in intraday. It has managed to rally 36 percent in the last one month. Forbes and Bloomberg have recently put Gautam Adani on their list of the top twenty richest people in the world due to his major recent successes. 

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