Adani Wilmar IPO: How good is it?

In our story, Adani Wilmar IPO: Information analysis, we have shared the key details of the IPO, along with important information about the company. Here we will answer some questions about Adani Wilmar and evaluate it on parameters like management, financials, valuations, etc. IPO questions The company/business 1) Are the company's earnings before tax more than Rs 50 crore in the last 12 months? Yes. The company's earnings before tax stood at Rs 829 crore for the twelve months ended September 2021. 2) Will the company be able to scale up its business? Yes. The company has planned to utilise the proceeds from the issue to fund their capital expenditure which will help them expand seven of their existing manufacturing facilities and develop a new manufacturing facility. 3) Does the company have recognisable brands truly valued by its customers? Yes. The company's flagship brand 'Fortune' is well recognised in the households of India with 11.5 per cent market share, and another recognised brand 'King's' holds 2.3 per cent market share. 4) Does the company have high repeat customer usage? Yes. The company was able to create a strong brand awareness and achieve leadership due to repeat customer usage and strong penetration by its premium brand 'Fortune'. 5) Does the company have a credible moat? No. Although the company has strong brand recall and well recognised management, it does not offer anything unique that its competitors cannot offer. 6) Is the company sufficiently robust to major regulatory or geopolitical risks? No. The company sources around 60 per cent of its raw materials through imports. Although Wilmar G