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Systematix Research Report
Adani Wilmar Ltd. has shown consistent growth across categories with share gains in all key segments like edible oil, atta and rice. Margins have also been resilient despite sharp volatility in input costs.
Clear strategic levers of penetration led growth, increasing distribution reach, timely capacity addition, new product launches and accretive acquisitions should help in sustaining the growth momentum with normalisation of margins.
Its price laddering to capture consumers at various price points, presence across the oil basket, increasing scale and market intelligence of Wilmar should help in gradual share gains.
Packaged foods business can also see a strong scale-up given the strong brand equity of Fortune, strong distribution and supply chain network and procurement capabilities.
But we find Adani Wilmar's current valuations quite expensive at 66 times FY24E consensus earnings, with return on equity of 15% and would await a correction to turn bullish on the name.
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