Edible oil maker Adani Wilmar's market capitalisation crossed Rs 1 lakh crore-mark on Tuesday with its shares locked in 5 per cent upper circuit at Rs 802.80 on the BSE. On the National Stock Exchange, Adani Wilmar shares rose by their daily maximum limit of 5 per cent to hit record high of Rs 803.15.
Adani Wilmar shares have been witnessing strong buying interest ever since Russian invasion of Ukraine began in February which led to disruption in edible oil markets as Ukraine and Russia are major producer of sunflower oil. Another boost in the arm for Adani Wilmar came after Indonesia, the world's leading producer of palm oil, imposed ban on exports of palm oil to insulate itself from the rising inflation.
"The Ukraine war has shot commodity prices higher worldwide, Ukraine being the largest exporter of oilseeds like sunflower, and soybean seeds have pushed the edible oil prices. The Indonesian palm oil export ban and Malaysian export tax will further squeeze the oil supply. This whole problem has skyrocketed edible oil prices in India, benefiting edible oil companies like Adani Wilmar. The company will have windfall gains via. Unsold inventory revaluation. Further, this situation will improve the overall margins for the company. Due to these factors the company has finally crossed the Rs. 1 lakh market cap level, however, we advise investors to stay cautious as the stock has moved far ahead from its fundamentals," Santosh Meena, head of research at Swastika Investmart said.
Adani Wilmar shares have jumped nearly four times since it opened for trading on February 8. On Tuesday, Adani Wilmar shares rose for fourth session in a row in the last four sessions the stock has advanced 20 per cent massively outperforming the Sensex and Nifty 500 indices.