HLL Touches 52-week Low

Mumbai, July 26: | Updated: Jul 27 2002, 05:30am hrs
The stock price of Hindustan Lever (HLL) touched its 52-week low, slipping four per cent and leaving a heavy impact on the Sensex, following increasing worries over the drought situation in the country coupled with its stagnating growth.

On The Stock Exchange, Mumbai (BSE), the HLL stock closed at Rs 174.95, four per cent lower than its previous close at Rs 182.30.

A total number of 821918 shares changed hands on the HLL counter. Dealers said that market sentiment has reacted in tandem with the decline the company has posted in its bottomline, for the quarter ended June 2002.

Analysts said that considering that HLL gets 50 per cent of its revenues from the rural segment, poor rains can pose a serious problem as falling rural income can result in lower consumptions and hence lower sales for the FMCG major.

Earlier this week, HLL unveiled its second quarter results. For the second quarter ended, June 30, 2002, HLL has posted a 4.12 per cent decline in its bottomline to Rs 447.34 crore as compared to Rs 466. 59 crore in its corresponding quarter last year.

Analysts said that the results have proved to be really dismal as they were expecting a 11.9 per cent rise in the net profit of HLL. Dealers further said that HLL shall be in further trouble if consumers begin to shift to the unorganised sector as household incomes fall.