Wilmar International Intrinsic Value – Adani Wilmar Forays into Whole Wheat Category with Fortune Brand Launch
June 22, 2023
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Adani Wilmar, a joint venture between Adani Group and Wilmar International ($SGX:F34) Ltd., has recently forayed into the whole wheat category with the launch of its Fortune brand. This move is in line with Wilmar’s mission to provide quality food products to the Indian market. Wilmar International Ltd is an agribusiness company that is headquartered in Singapore. It is one of Asia’s largest integrated agribusiness groups and has operations across the whole agricultural value chain from production, processing, and merchandising to manufacturing of edible oil products and consumer pack oils. Wilmar has established a strong presence in India with its Fortune brand in the edible oils category. The Fortune brand is one of the leading edible oil brands in India and is popular amongst consumers across the country for its quality and taste.
With the launch of its whole wheat range, Adani Wilmar is offering a convenient, healthy, and nutritious food option for Indian consumers. The Fortune Whole Wheat range includes Whole Wheat Flour, Whole Wheat Atta, and Whole Wheat Suji. The products have been sourced directly from local farmers and are prepared using the latest technology in order to retain the natural nutrition and freshness. This launch reinforces Adani Wilmar’s commitment to provide convenience and nutrition to Indian consumers. The company is confident that this new product range will further strengthen its position in the Indian market.
Market Price
This marks the first time that the company has ventured into such an area. The launch is part of WILMAR INTERNATIONAL‘s strategy to expand their portfolio of products and to build a strong presence in the health-conscious Indian market. The Fortune brand offers a range of whole wheat products that are packaged in a convenient, easy-to-carry form, including atta, rava, suji, maida and bran. These products are fortified with essential vitamins and minerals that make them a nutritious and healthy food choice for consumers.
WILMAR INTERNATIONAL has also ensured that their products are free from harmful chemicals and additives. The stock of WILMAR INTERNATIONAL opened at SG$4.0 on Friday and closed at the same price. The launch of the Fortune brand is expected to be well-received by health-conscious consumers in India, which could potentially increase the value of the company’s stock in the long-term. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Wilmar International. More…
| Total Revenues | Net Income | Net Margin |
| 73.4k | 2.4k | 3.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Wilmar International. More…
| Operations | Investing | Financing |
| 2.05k | -2.46k | 667.23 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Wilmar International. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 60.4k | 37.8k | 3.2 |
Key Ratios Snapshot
Some of the financial key ratios for Wilmar International are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.8% | 19.2% | 5.5% |
| FCF Margin | ROE | ROA |
| -0.6% | 12.6% | 4.1% |
Analysis – Wilmar International Intrinsic Value
At GoodWhale, we analyzed the financials of WILMAR INTERNATIONAL to ascertain its potential as an investment. Our proprietary Valuation Line put the intrinsic value of WILMAR INTERNATIONAL stock at around SG$5.0. Currently, however, WILMAR INTERNATIONAL shares are trading at SG$4.0, representing a 20.5% discount. This suggests that WILMAR INTERNATIONAL shares could be an attractive purchase for investors looking for a bargain. More…
Peers
Wilmar International Ltd is one of the leading palm oil companies in the world. Its competitors are Indofood Agri Resources Ltd, Taisun Enterprise Co Ltd, and PT PP London Sumatra Indonesia Tbk.
– Indofood Agri Resources Ltd ($SGX:5JS)
Indofood Agri Resources Ltd is a leading agribusiness company in Indonesia. It is engaged in the cultivation of oil palm, rubber, and other crops; the manufacture of palm oil-based products, such as cooking oil, margarine, shortening, and biodiesel; and the trading of agricultural commodities. The company has a market cap of 411.79M as of 2022 and a Return on Equity of 16.08%.
– Taisun Enterprise Co Ltd ($TWSE:1218)
Taisun Enterprise Co Ltd is a publicly traded company with a market capitalization of $18.94 billion as of 2022. The company has a return on equity of 5.82%. Taisun is engaged in the business of manufacturing and selling steel products and related services. The company’s product portfolio includes hot-rolled coils, cold-rolled coils, galvanized coils, and pre-painted coils. Taisun also provides steel processing services, such as cut-to-length, slitting, and shearing.
– PT PP London Sumatra Indonesia Tbk ($IDX:LSIP)
London Sumatra Indonesia Tbk is one of the largest palm oil producers in the world with a market cap of 7.71T as of 2022. The company has a Return on Equity of 7.69%. The company produces palm oil and palm kernel oil.
Summary
Wilmar International Limited is an agribusiness company that is based in Singapore. It is involved in the production, processing, trading, and distribution of vegetable oil, grains, and animal feed. The company has recently forayed into the whole wheat category with the launch of its Fortune brand. Wilmar International Limited has a strong track record of long-term growth and profitability. Its stock has outperformed the broad market in recent years and has a strong balance sheet. The company enjoys good financials and sound corporate governance practices, making it an attractive investment for investors looking for a long-term growth opportunity.
Additionally, the company has a strong presence in emerging markets such as India and China, making it well positioned for future growth.
