Morgan Stanley downgraded Hindustan Unilever Ltd to 'underweight' from 'equal-weight', citing disappointing October-December volume growth and the impact on earnings from its hike in royalty payments.
Morgan Stanley also cut its price target to Rs 405 from Rs 510. A slew of other banks have also cut their ratings on Hindustan Unilever after its quarterly results on Tuesday.
Hindustan Unilever shares were down 5.3% as of 0348 GMT.