⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
AWL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.0
| Stock Code | AWL | Market Cap | 27,891 Cr. | Current Price | 214 ₹ | High / Low | 291 ₹ |
| Stock P/E | 31.4 | Book Value | 75.6 ₹ | Dividend Yield | 0.00 % | ROCE | 21.0 % |
| ROE | 13.8 % | Face Value | 1.00 ₹ | DMA 50 | 231 ₹ | DMA 200 | 257 ₹ |
| Chg in FII Hold | 7.04 % | Chg in DII Hold | 0.46 % | PAT Qtr | 278 Cr. | PAT Prev Qtr | 229 Cr. |
| RSI | 42.9 | MACD | -6.95 | Volume | 25,36,503 | Avg Vol 1Wk | 17,54,198 |
| Low price | 204 ₹ | High price | 291 ₹ | PEG Ratio | 2.15 | Debt to equity | 0.09 |
| 52w Index | 12.0 % | Qtr Profit Var | -32.0 % | EPS | 6.70 ₹ | Industry PE | 22.2 |
📊 Core Financials
- Revenue & Profitability: PAT rose from 229 Cr. to 278 Cr., but quarterly profit variance is –32%, showing inconsistency.
- Margins: ROE at 13.8% is moderate, while ROCE at 21% indicates decent efficiency.
- Debt: Debt-to-equity ratio of 0.09 shows very low leverage, a positive sign.
- Cash Flow: Profitability supports cash generation, but volatility in earnings raises concerns.
💹 Valuation Indicators
- P/E Ratio: 31.4 vs. industry average of 22.2 — slightly expensive.
- P/B Ratio: Current price (₹214) vs. book value (₹75.6) → ~2.8x, moderately valued.
- PEG Ratio: 2.15, suggesting growth is priced at a premium.
- Intrinsic Value: Valuation is moderately stretched, requiring consistent earnings to justify.
🏢 Business Model & Competitive Advantage
- Adani Wilmar (AWL) operates in FMCG, focusing on edible oils, food products, and packaged goods.
- Competitive advantage lies in strong brand presence (Fortune), wide distribution, and diversified product portfolio.
📈 Technicals & Entry Zone
- DMA 50 (₹231) and DMA 200 (₹257) are above current price, indicating weakness.
- RSI at 42.9 suggests neutral-to-oversold momentum; MACD negative indicates bearish sentiment.
- Entry Zone: Attractive near ₹200–210 for long-term investors.
- Long-Term Holding: Suitable for patient investors; recovery depends on stabilizing earnings.
✅ Positive
- Low debt-to-equity ratio (0.09).
- Strong brand presence in FMCG with diversified product portfolio.
- FII holdings increased (+7.04%), showing strong foreign investor confidence.
⚠️ Limitation
- Quarterly profit decline (–32%) raises concerns.
- Dividend yield is 0.00%, offering no immediate shareholder return.
- P/E ratio (31.4) is above industry average (22.2).
📉 Company Negative News
- Stock trading below DMA 50 and DMA 200, showing technical weakness.
- MACD negative (–6.95), indicating bearish momentum.
📈 Company Positive News
- Quarterly PAT improved to 278 Cr., reflecting operational strength despite volatility.
- DII holdings increased (+0.46%), showing domestic institutional support.
🏭 Industry
- FMCG sector benefits from rising consumer demand and packaged food penetration in India.
- Industry average P/E (22.2) highlights AWL’s premium valuation.
🔎 Conclusion
- Adani Wilmar is financially stable with low debt and strong brand presence but faces earnings volatility.
- Valuations are moderately stretched compared to industry averages.
- Recommendation: Accumulate near ₹200–210 for long-term holding. Suitable for investors seeking FMCG exposure, but monitor earnings consistency.