HUL share price closed lower in trade today after Credit Suisse cut target price of citing parent firm Unilver paring growth guidance. HUL share price closed 1.79% or 35 points lower at Rs 199.25 on BSE. It fell 2.87% intra day to Rs 1,907. The large cap stock has lost 4.73% in last six days.
Credit Suisse cut target price of HUL stock to Rs 2,150 as it highlighted India slowdown as key factor. The cut in growth guidance implies revenue growth below 5% and volume growth of 3% in Q3.
The brokerage said potential sale of GSK's stake of 5.7% post merger in Q4 was also an overhang and cut earnings estimates of the FMCG firm by 1-2%.
Amid a slowdown in demand in the FMCG sector, the firm reported a 21.18 per cent rise in standalone net profit to Rs 1,848 crore for the quarter ended on September 30, 2019, mainly driven by home care, and beauty and personal care verticals.
The company had posted a net profit of Rs 1,525 crore for the corresponding period of the previous fiscal. Standalone sales during the quarter under review stood at Rs 9,708 crore as against Rs 9,138 crore for the same period year ago.