Hind Lever slips anew on downgrade

DALAL STREET SPIKES

The share price of Hindustan Lever Ltd (HLL) slipped anew on Friday, hitting a seven-year low of Rs 110.20 in intra-day trades.

According to market sources, the counter witnessed renewed selling after a leading domestic broking firm downgraded the stock with a price target of Rs 85.

The stock ended 3.2 per cent lower to Rs 110.50 against its previous close of Rs 114.15. More than 7.54 lakh shares changed hands at the counter on the Bombay Stock Exchange (BSE) on Friday.

The battered HLL counter is facing aggressive selling pressure on concerns over ongoing price war with other multinational company brands and increased competition from local players in the rural area.

The stock has been declining since the announcement of its June quarter results. HLL's net profit plunged 45.7 per cent in the second-quarter ended June 30, 2004, to Rs 244.49 crore as compared with a net profit of Rs 450.93 crore in the second quarter of June 2003.

Total income declined 5.6 per cent to Rs 2,641.90 crore from Rs 2,799.58 crore.