Hindustan Unilever Ltd (HUL) share price rose in early trade today after board of the FMCG firm approved the formation of a new 100% owned subsidiary. Share price of HUL rose up to 2.84% to Rs 2,279 compared to the previous close of Rs 2,216 on BSE. The large cap stock is trading 2.47% away from 52 week high of Rs 2,307.2. The stock hit its 52 week high on February 19, 2020 and 52 week low of Rs 1,649 on April 5, 2019.
0.64 lakh shares of the firm changed hands amounting to turnover of Rs 14.43 crore on BSE. The FMCG stock is trading higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages. The large cap stock has gained 27.3% in last one year and risen 17% since the beginning of this year.
22 of 36 brokerages rate the stock "buy" or 'outperform', 12 "hold" and two "underperform", according to analysts' recommendations tracked by Reuters.
HUL said its new subsidiary would be incorporated with an authorised share capital of Rs 2,000 crore.
The new subsidiary has been formed to leverage the growth opportunities in fast-changing business environment and will help HUL in becoming more agile and customer-focused, HUL said. In the third quarter of current fiscal, HUL reported a 12.95 per cent rise in consolidated net profit at Rs 1,631 crore for December quarter 2019-20, helped by higher margins and volume growth. The company had posted a profit of Rs 1,444 crore in October-December period of the previous fiscal.
Net sales in Q3 stood at Rs 9,953 crore, up 3.87 per cent from Rs 9,582 crore in the year-ago period. HUL's domestic consumer growth was 4 per cent with underlying volume growth at 5 per cent in the quarter, it said. Total expenses fell to Rs 7,849 crore in Q3 of current fiscal against Rs 7,900 crore in the corresponding quarter of previous fiscal.