'Hold' Adani Wilmar; Co poised to scale up growth in packaged food biz: ICICI Securities

  • IANS
  • Stock Market News
'Hold' Adani Wilmar; Co poised to scale up growth in packaged food biz: ICICI Securities
Credit: © Reuters.

New Delhi, May 18 (IANS) Brokerage house ICICI Securities (NS: ICCI ) has given a "hold" call for Adani Wilmar (NS: ADAW ) stocks with a target price of Rs 550.

At 2.50 p.m., it traded at Rs 636.55 per scrip.

The brokerage feels that the Adani (NS: APSE ) Group company is well poised to capture accelerated growth in packaged food retail business.

Adani Wilmar is a strong market leader in branded edible oil and industry essentials with aspirations to further scale-up packaged foods business.

Strong competitive advantages (price-laddering), oil segments, scale, market intelligence in edible oil provide the Adani company an edge over competitors and acts as an entry barrier for entrants, said the brokerage in a report.

Further, it enjoys multiple synergies across all three business segments which augur well for scaling up of packaged foods business -- scale in procurement and logistics; brand recall of 'Fortune'; and readily available distribution and mix-load supply chain benefit from edible oil.

That said, key risks, the report cited, were higher volatility in raw material prices and failure in scaling up packaged foods.

--IANS

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    expect 15 percent down in next 3 sessions
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    1000 by year end
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      2000
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