Adani Wilmar Long-Term Investment Idea💡

Introduction

Adani Wilmar Ltd. provides edible oil, vanaspati and specialty fats. The firm offers vanaspati, packed basmati rice, pulses, soya chunks, besan and specialty fats, lauric range products, castor oils, oleo chemicals and non-GMO soya products.

Observation

As we can see stock trade is all time low, but stock Revenue and Net profit is rising. once its breakout this Darvas box and sustain above it after that sky is the limit. Target mention on the chart

10-day series (Day 5)

What is Value at Risk (VAR)? 🤔

Here is the advance answer with example 👇

Value at Risk (VAR)

Value at Risk (VAR) estimates the maximum potential loss of an investment over a specific time period with a given confidence level.
Example:
🤔Suppose you have a portfolio worth $1 million.
●You calculate that there is a 5% chance that the portfolio will lose more than $50,000 in a month.
🟡Scenario:
●This means that 95% of the time, the loss will not exceed $50,000 in that month.
Summary: VaR quantifies the potential loss in value of a portfolio over a defined period for a given confidence interval, providing a clear picture of the worst-case scenario in normal market conditions.

Let's touch fundamentals

Stock PE is 72 from 187, ROCE 10%, ROE 8%, Public Holding 11%, Promotor Holding 88%, Debt to equity ratio 0.29 negligible,

Technical Analysis & indicators 🔍

Weekly Chart

Darvas Box

News of the day

1. An Adani Group-owned company is selling shares worth $500 million in Ambuja Cements, according to a term sheet seen by Reuters on Thursday. The holding company, Holderind Investments, is selling a 2.84% stake in the cement company on Friday, with the floor price of the sale set at 600 rupees per share.The sale is at a 5% discount to Thursday's closing price of 631.8 rupees. Adani Group had a 70.33% stake in Ambuja as of June 30, according to exchange data. Holderind's stake of 50.9% stake in the cement-maker makes up for a majority of Adani Group's shareholding in the company. Billionaire Gautam Adani's flagship firm Adani Enterprises is likely to launch a $1 billion share sale by mid-September, Reuters reported earlier this month.

2. India's Hindalco Industries will spend $10 billion (₹8.2 lakh crore in Indian rupees) to expand its domestic business and U.S.-based aluminium recycler Novelis Inc, Chairman Kumar Mangalam Birla said during the metals refiner's shareholder meeting on Thursday.Hindalco would use the $10 billion (₹8.2 lakh crore in Indian rupees) for the ongoing aluminium and copper expansion projects as well as new ones, such as Novelis' Bay Minnette project in the United States, he said.The Aditya Birla Group-owned company, which plans to expand its copper smelting capacity, is also exploring setting up a brownfield facility in Gujarat for copper.

3. GAIL (India) has entered into a memorandum of understanding with Petron Scientech to explore jointly setting up a 500,000 tons per annum (KTA) bio-ethylene plant along with its downstream units in India, according to a Thursday filing to the stock exchanges. After approval from their respective managements, the two companies will form a 50:50 joint venture to jointly undertake feasibility studies to ascertain the technical viability and financial prospects of the project.

Educational content

This stock analysis is designed for educational purposes and should not be taken as financial advice. Please carry out your own research or consult with a financial advisor before investing.

Fri Aug 23, 2024