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(1/16)
About:
Adani Wilmar is a joint venture between the Adani Group which was incorporated in 1999.
They have a retail reach of 1.6 million outlets and over 50 manufacturing locations. One in every three households consumes an Adani Wilmar product.
About:
Adani Wilmar is a joint venture between the Adani Group which was incorporated in 1999.
They have a retail reach of 1.6 million outlets and over 50 manufacturing locations. One in every three households consumes an Adani Wilmar product.
(2/16)
• Sector Overview
FMCG industry is the 4th largest sector in the Indian economy. Inflationary pressures saw companies having to take a hit on margins, however, experts advise that the worst of over.
• Sector Overview
FMCG industry is the 4th largest sector in the Indian economy. Inflationary pressures saw companies having to take a hit on margins, however, experts advise that the worst of over.
(3/16)
• Sector Outlook
The Indian vegetable oil market is expected to grow at a CAGR of 14.30% between 2023-2028 to reach 57.22 MMT by 2027.
Digitisation and increasing demand for ready-to-cook food is expected to help the industry grow exponentially.
• Sector Outlook
The Indian vegetable oil market is expected to grow at a CAGR of 14.30% between 2023-2028 to reach 57.22 MMT by 2027.
Digitisation and increasing demand for ready-to-cook food is expected to help the industry grow exponentially.
(4/16)
• Company’s business
Adani Wilmar is one of the fastest growing packaged food company in India. Their largest refinery in India at Mundra has a capacity of approximately 5,000 TPD.
They are the largest exporter of castor oil and largest importer of crude oil.
• Company’s business
Adani Wilmar is one of the fastest growing packaged food company in India. Their largest refinery in India at Mundra has a capacity of approximately 5,000 TPD.
They are the largest exporter of castor oil and largest importer of crude oil.
(5/16)
• About the segments
Adani Wilmar has their presence in the following segments:
•Edible Oil
•Food & FMCG
•Industry Essentials
• About the segments
Adani Wilmar has their presence in the following segments:
•Edible Oil
•Food & FMCG
•Industry Essentials
(6/16)
• Q3 Numbers
Revenue up from ₹13,410 Cr in Q2 to ₹14,714 Cr in Q3
OPM up from 2% to 4%
NPAT up from 62Cr to 277Cr
EPS up from ₹0.48 to ₹2.13
• Q3 Numbers
Revenue up from ₹13,410 Cr in Q2 to ₹14,714 Cr in Q3
OPM up from 2% to 4%
NPAT up from 62Cr to 277Cr
EPS up from ₹0.48 to ₹2.13
(7/16)
• Key highlights:
For 9M ended, 62% of volumes came from edible oil, 16% from Food & FMCG and 22% from Industry Essential
Volume contribution from food grew from 13% last year, to 16% this year
Recently acquired Kohinoor, which is now a 100Cr+ brand
• Key highlights:
For 9M ended, 62% of volumes came from edible oil, 16% from Food & FMCG and 22% from Industry Essential
Volume contribution from food grew from 13% last year, to 16% this year
Recently acquired Kohinoor, which is now a 100Cr+ brand
(8/16)
73% revenues come from branded segment
9M consolidated volume grew by 13%
Strong demand in Q3 due to festivities and weddings
Alternate sales channels saw a YoY growth of 32% in Q3 and 26% in 9M
Mustard oil volumes grew 50% YoY in Q3
Focus on SRM, Suji, Rawa & Maida
73% revenues come from branded segment
9M consolidated volume grew by 13%
Strong demand in Q3 due to festivities and weddings
Alternate sales channels saw a YoY growth of 32% in Q3 and 26% in 9M
Mustard oil volumes grew 50% YoY in Q3
Focus on SRM, Suji, Rawa & Maida
(9/16)
Received good traction from marketing activities for our new ready-to-cook products
In the last 12-18 months they have extended their rural distribution which has increased consumption.
In urban areas, their direct reach has increased and market share has improved
Received good traction from marketing activities for our new ready-to-cook products
In the last 12-18 months they have extended their rural distribution which has increased consumption.
In urban areas, their direct reach has increased and market share has improved
(10/16)
• Key Strengths
India’s largest Oleo Chemicals complex with close to 800 tons per day of Oleo Chemicals capacity
In the Castor segment, they are the market leader with 32% market share
On MAT December 2022 basis, wheat flour and rice industry grew by 4% and 6%
• Key Strengths
India’s largest Oleo Chemicals complex with close to 800 tons per day of Oleo Chemicals capacity
In the Castor segment, they are the market leader with 32% market share
On MAT December 2022 basis, wheat flour and rice industry grew by 4% and 6%
(11/16)
Number 1 player in edible oil, number 2 player in wheat flour and number 3 player in basmati rice
No risk of down-trading since they have a diversified portfolio of brands
Number 1 player in Mustard oil category
Number 1 player in edible oil, number 2 player in wheat flour and number 3 player in basmati rice
No risk of down-trading since they have a diversified portfolio of brands
Number 1 player in Mustard oil category
(12/16)
Plan to use their oil distribution network to increase penetration of Food & FMCG
7/23 plants have solar energy and continue to have installations over the years for all plants
9 plants have been installed with zero liquid discharge helping with water conservation
Plan to use their oil distribution network to increase penetration of Food & FMCG
7/23 plants have solar energy and continue to have installations over the years for all plants
9 plants have been installed with zero liquid discharge helping with water conservation
(13/16)
• Weakness
₹3,000 Cr of short-term borrowing
ROCP industry for edible oil contracted by 1% between December 2021 & December 2022
Flattish EBITDA
PAT de-grew by 14%
Rising interest rates causing a hit on interest cost
• Weakness
₹3,000 Cr of short-term borrowing
ROCP industry for edible oil contracted by 1% between December 2021 & December 2022
Flattish EBITDA
PAT de-grew by 14%
Rising interest rates causing a hit on interest cost
(14/16)
Industry Essentials got impacted because of the price volatility in raw materials
Their wholly owned subsidiary in Bangladesh; BEOL suffered a loss of ₹47 Cr in Q3
Rice export slowed due to new extra tax of 20% (export duty)
Industry Essentials got impacted because of the price volatility in raw materials
Their wholly owned subsidiary in Bangladesh; BEOL suffered a loss of ₹47 Cr in Q3
Rice export slowed due to new extra tax of 20% (export duty)
(15/16)
• Numbers and Ratios
Market Cap: ₹50,447 Cr.
Stock P/E: 68.8
RoCE: 20%
RoE: 15.5%
PEG: 2.37
Price to Sales: 0.89
Int Coverage: 2.57
NPM: 1.88%
D/E: 0.40
• Shareholding Pattern
Promoter: 87.94%
FII: 1.57%
DII: 0.14%
Public: 10.35%
• Numbers and Ratios
Market Cap: ₹50,447 Cr.
Stock P/E: 68.8
RoCE: 20%
RoE: 15.5%
PEG: 2.37
Price to Sales: 0.89
Int Coverage: 2.57
NPM: 1.88%
D/E: 0.40
• Shareholding Pattern
Promoter: 87.94%
FII: 1.57%
DII: 0.14%
Public: 10.35%
(16/16)
Conclusion:
Future plans for Adani Wilmar are looking positive. However even after positive numbers in Q3, the company’s share prices is down 30% in the last 3 months.
The stock will remain under pressure until the Hindenburg report storm settles.
Conclusion:
Future plans for Adani Wilmar are looking positive. However even after positive numbers in Q3, the company’s share prices is down 30% in the last 3 months.
The stock will remain under pressure until the Hindenburg report storm settles.
• • •
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