Shares of Hindustan Unilever fell over 5% on Monday after the FMCG major reported lower volumes.
The Kolkata-based company posted volume growth of 3% in December quarter as against 5% in the previous quarter. The company saw its net profit rise 28.72% QoQ to Rs 1,252 crore.
The scrip closed 5.27% lower at Rs 892.80 on the BSE.
In recent days, brokerages had upgraded their rating on the stock. Credit Suisse had upgraded its view to outperform from neutral. “We expect 21% earnings CAGR over FY15-17, as against 10% CAGR over the past two years. We also expect volume growth to recover in FY16, which will support rich valuations,” the brokerage said in a note.
JP Morgan had upgraded its view to neutral, citing better margin outlook, product innovation, distribution enhancement, along with a gradual volume growth recovery over FY16.