Shares of AWL Agri Business Ltd, formerly known as Adani Wilmar Limited, plummeted over 9% on Wednesday, hitting a new 52-week low. The sharp decline followed the company's announcement of its second-quarter earnings, which revealed a dip in consolidated net profit despite strong revenue growth.
Stock Performance Takes a Hit
The Adani Wilmar stock fell to Rs 159.75 against its previous close of Rs 176.30, marking a significant downturn. This plunge brought the company's market capitalization down to Rs 20,820 crore on the BSE. The stock has experienced a challenging period, losing 15% in the last two weeks, 22% over six months, and a substantial 33% since the beginning of 2026.
This negative trend places AWL Agri Business shares below their 5-day, 20-day, 50-day, 100-day, 150-day, and 200-day moving averages, indicating sustained selling pressure.
Q2 Earnings Overview: Profitability Misses Expectations
For the September quarter, Adani Wilmar reported a 2% year-on-year decrease in consolidated net profit, settling at Rs 239.39 crore. This compares to a net profit of Rs 244.85 crore in the same period last fiscal year. The slight decline in profit occurred despite a robust increase in total income, which grew to Rs 22,271.25 crore from Rs 17,525.61 crore year-on-year.
- Edible Oil Business: The largest revenue contributor saw its income rise to Rs 17,067 crore in Q2 FY27, up from Rs 13,827.65 crore previously.
- Food & FMCG Segment: This segment also demonstrated healthy growth, with total income climbing to Rs 2,216.21 crore from Rs 1,681.11 crore in the corresponding period last year.
Jefferies Maintains 'Buy' Rating Amidst Concerns
Global investment bank Jefferies noted that Adani Wilmar's profitability for Q2 missed expectations. However, the firm maintains a 'Buy' call on the stock, setting an SOTP-based (Sum-of-the-Parts) price target of Rs 260. Jefferies anticipates that the edible oils sector will benefit from reduced duties and festive demand, while expansion in its portfolio and distribution should support growth in the Food & FMCG division.
The investment bank projects a revenue and EPS (Earnings Per Share) Compound Annual Growth Rate (CAGR) of 10% and 12% respectively, over FY26-29E, with a Return on Capital Employed (ROCE) of 18-20%. Jefferies sees potential for gradual improvement in earnings quality, driven by Food & FMCG, value-added industrial essentials, and exports.
While the base case target is Rs 260, Jefferies also outlined an upside scenario of Rs 320 and a downside scenario of Rs 160, reflecting potential market volatility.