Recently, he has turned bullish on Wilmar following its announcement on Dec 30, 2024 that it will be taking control of a Bombay-listed joint venture it now runs runs with Adani, its partner in India. The joint venture is called Adani Wilmar and is a leading supplier of cooking oil, flour and other food ingredients in India. From an existing stake of 44% in Adani Wilmar, Wilmar will increase its stake to 75%, as Adani prefers to focus on other business areas. “Adani Wilmar is at the core of India’s food sector,” says Tiruchelvam.
Among the various component stocks of the Straits Times Index (STI), Wilmar International (SGX:F34
) ’s share price, down 10% over the past year, has not been inspiring, so to speak. It did better than the beaten down REITs and property names but was nowhere near the surge enjoyed by the banks and specific industrial names such as Yangzijiang Shipbuilding. If seen over the past three years, Wilmar is down by a heftier 30% or so.
Nirgunan Tiruchelvam of Aletheia Capital had earlier pointed out that Wilmar is vulnerable to the unwinding of the carry trade in previous reports and also has to bear with “excessive” leverage and poor returns.
