Thread by @amithv_gowda

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

https://twitter.com/JstInvestments/status/1485475841010462723

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...
Do share like and retweet if u find it useful

End of the 🧵
#ADANIWILMAR

17) this is positive for adani Wilmar as it imports crude edible oil and refines it in India

https://twitter.com/invest_mutual/status/1529133838752186370?t=HUqsHacJjiYAZPLFMA9RjQ&s=19

18) interesting stats from @Finstor85

https://twitter.com/Finstor85/status/1519280212932014084?t=KhOpnTDZDA_oy7lW5fFPhw&s=19

19) adani Wilmar would be a beneficiary with this partnership watch out for more info as this is not yet official