Adani Wilmar - BUSINESS ANALYSIS
Transformation towards FMCG company from kitchen commodities
Can fortune brand turn the fortune for Adani Wilmar?
Let's deep dive
A thread 🧵
1)
#adaniwilmar #adani #AdaniGroup
2)
Story/theme
- unorganised to organised
- unbranded to branded
- increase in disposable income
- loose to packed products
3) Business segments
i) Edible oil - soya,palm sunflower, groundnut, cotton seed, mustard,rice bran oils and speciality fats
ii)Packaged foods and FMCG - wheat Flour, rice,besan,pulses etc
iii)industry essentials -largest oleochemical player castor oil and it's derivatives
4) FY22 HIGHLIGHTS
Revenue 54214crs up 47% yoy
EBITDA 1909crs up 34% yoy
EBITDA MARGIN 3.5%
PAT 804crs up 29% yoy
5) Market share across segments
6) company had it's IPO recently and update on IPO proceedings
7) capex update
In FY23 company will use IPO Proceedings for future capex requirements
8) Distribution network
- 5775 dealerships with 65% being common for oil & food business
- reaches 1.7million retail outlets in 6400+ towns in India
- Fortune Mart expanding rapidly and to be used for online and D2C deliveries
-Fortune Online live in 25cites with 29000 orders
9) Competitors
✓edible oil - Ruchi soya ,emani ,Marico Gemini
✓Foods business - TATA consumer,HUL,ITC
10) Key risks
-Geo political issues
-Commodity inflation
-thin margins
-Huge competation
-private brands and unorganised brands
-unhealthy acquisitions
11) New Acquisition - Kohinoor brands
It has presence across basmati rice (mass to premium), ready to cook & ready to eat segments
#kohinoor #basmatirice #food #readytoeat #readytocook
12) integration synergies between fortune and Kohinoor
IPO proceedings will be used for acquisition of domestic IP rights of Kohinoor brands from McCormick Switzerland GMBH
13) comparison between FMCG companies
AWL trades at expensive PE but cheapest in terms of PS with highest asset turnover
Once food business starts perform margins will expand and profits will grow PE will automatically come down
So it's still trading cheap compared to peers
14)
Brokerages Hdfc, ICICI,hem securities, ventura, ashika research have ther targets based on various parameters
personal target of 2000rs/share with time horizon of 3-5yrs
This would come true with transformation towards food business with high margin
15) adding more references
IPO analysis by @JstInvestments
& @aditya_kondawar
IPO meet with @omkaracap
IPO meet with @bqprime
IPO meet with investors
16) adding more references
Business analysis by @cavarunagl
For research reports on adani Wilmar DM me
Thanks for reading...
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End of the 🧵
#ADANIWILMAR
17) this is positive for adani Wilmar as it imports crude edible oil and refines it in India
18) interesting stats from @Finstor85
19) adani Wilmar would be a beneficiary with this partnership watch out for more info as this is not yet official
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