After five consecutive quarters of doubledigit volume growth, Hindustan UnileverNSE -0.70 % (HUL) the fast-moving consumer goods bellwether is expected to report subdued performance for the March quarter on back of weak consumer demand. With valuations stretching at 64 times its earnings, the Street would welcome a correction in the stock price following the Q4 results.
The Street seems to have picked up the earliest signs of the impending weakness soon after company posted its December ..
As per the data from Bloomberg, half of the 42 analysts tracking the HUL stock have a ‘buy’ recommendation on it.
In the quarter to March, volumes are expected to grow at 8 per cent — the lowest growth rate in the past six quarters. This despite the estimated high expenditure (of around 12.5 per cent of revenues) towards advertising & marketing to augur volumes. Net sales are expected to cross the level of Rs 10,000 crore a quarter for the first time — growing by around 11 per cent over the year ago level. Operating profit margin is likely to be maintained at above 22 per cent — thanks to the price incr ..
Stocks of both the companies closed nearly 4 per cent lower. The sector leader’s performance may throw further insights on the state of consumer demand and the FMCG market at a time when overall consumption growth has slowed down.
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