JP Morgan has reiterated its “underweight” rating on Adani Wilmar, citing limited upside potential from the current market price of ₹323.25. The brokerage has set a target price of ₹320, indicating a neutral to slightly bearish outlook.
The firm highlighted Adani Wilmar’s significant advantages in sourcing, supply chain, and scale, which underpin its franchise strength. However, JP Morgan believes the current valuation of 40x FY26 estimated price-to-earnings (P/E) already reflects these strengths.
For FY26, the brokerage values the company’s edible oil business at an EV/EBITDA multiple of 12x, the foods business at an EV/revenue multiple of 3x, and the industry essentials segment at an EV/EBITDA multiple of 8x. Despite the company’s strong operational metrics, JP Morgan remains cautious about growth opportunities at the current valuation levels.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial advisor before making investment decisions.
