Price warriors put one across HLL

DALAL STREET SPIKES

FMCG major Hindustan Lever (HLL) witnessed a further blow yesterday as smaller detergent makers joined the price war with Henkel having cut price of Henko Stainchampion from Rs 90 to Rs 75 per kg.

The HLL scrip ended 1.63 per cent lower at Rs 148.25 after hitting the intra-day low of Rs 146.20. The counter witnessed volumes of more than 17.19 lakh shares at the BSE.

According to market analysts, the HLL shares have been under selling pressure in the last few weeks on a disappointing fourth quarter show and the recent price war in the detergent segment announced by rivals P&G. The price war is expected to impact HLL margins in the coming quarters, said most analysts.

According to sources, leading foreign institutional investors are believed to have replaced HLL in their portfolio with ITC in the last few weeks. The stock from its recent high of Rs 202.95 has now fallen nearly 36.4 per cent to today's close of Rs 148.20.