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Shares of fast moving consumer goods (FMCG) major Hindustan Unilever (HUL) have rallied 3% to Rs 888, extending its past five-day’s gain, recording its sharpest rally in 20-months.
The stock opened at Rs 865 and hit a new high of Rs 898 on National Stock Exchange (NSE). The trading volumes on the counter almost doubled with a combined 2.62 million shares changed hands till 1207 hours on NSE and BSE.
It surged 17% in past six trading sessions from Rs 756 on January 2, 2015, its sharpest rally since April 2013.
Between April 26, 2013 and April 30, 2013, in just two trading sessions, HUL had spurted 25.5% from Rs 465 to Rs 584 after its parent company Unilever PLC announced a voluntary open offer to increase its stake in HUL from 52.48% to up to 75% at a price of Rs 600 per share.
As of December 31, 2014, the promoters held 67.23% stake in HUL, the shareholding pattern data shows.
Meanwhile, most of the analysts are bullish on the company because of a fall in crude oil prices and have said that volume growth is bottoming out.
Analyst at Religare and IIFL upgrade ‘Buy’ rating on the stock with a target price of Rs 925.
“We expect volume growth to have bottomed out at around 5%, with a gradual recovery to 8-10% over FY16/FY17 as raw material benefits are passed through and margins to expand 250bps over FY14-FY17 on sharply lower input costs, despite an increase in A&P spends,” analyst said in a report.
Analyst at IIFL believe HUL is well poised to benefit from the dual tailwinds of lower input costs and recovery in volume growth, which would drive 19% EPS CAGR FY15-17 (vs 9% average of the past six quarters.)
In Q3FY15, the FMCG companies to post good EBIDTA margin due to moderation in price of raw materials and boost in consumer spending which leads to higher revenue growth, analyst at KRChoksey Research said.
HUL is schedule to announce its unaudited financial results for the quarter ended December 31, 2014 on January 19, 2015.
The stock opened at Rs 865 and hit a new high of Rs 898 on National Stock Exchange (NSE). The trading volumes on the counter almost doubled with a combined 2.62 million shares changed hands till 1207 hours on NSE and BSE.
It surged 17% in past six trading sessions from Rs 756 on January 2, 2015, its sharpest rally since April 2013.
Between April 26, 2013 and April 30, 2013, in just two trading sessions, HUL had spurted 25.5% from Rs 465 to Rs 584 after its parent company Unilever PLC announced a voluntary open offer to increase its stake in HUL from 52.48% to up to 75% at a price of Rs 600 per share.
As of December 31, 2014, the promoters held 67.23% stake in HUL, the shareholding pattern data shows.
Meanwhile, most of the analysts are bullish on the company because of a fall in crude oil prices and have said that volume growth is bottoming out.
Analyst at Religare and IIFL upgrade ‘Buy’ rating on the stock with a target price of Rs 925.
“We expect volume growth to have bottomed out at around 5%, with a gradual recovery to 8-10% over FY16/FY17 as raw material benefits are passed through and margins to expand 250bps over FY14-FY17 on sharply lower input costs, despite an increase in A&P spends,” analyst said in a report.
Analyst at IIFL believe HUL is well poised to benefit from the dual tailwinds of lower input costs and recovery in volume growth, which would drive 19% EPS CAGR FY15-17 (vs 9% average of the past six quarters.)
In Q3FY15, the FMCG companies to post good EBIDTA margin due to moderation in price of raw materials and boost in consumer spending which leads to higher revenue growth, analyst at KRChoksey Research said.
HUL is schedule to announce its unaudited financial results for the quarter ended December 31, 2014 on January 19, 2015.
