HUL share price today saw the biggest intraday fall in nearly 11 weeks after the FMCG giant’s Q1 FY19 results missed the street estimates despite a surge of 19% in Q1 net profit. The stock of HUL (Hindustan Unilever Ltd) was the biggest loser among the components of BSE Sensex and NSE Nifty on Tuesday. HUL shares fell nearly 4% to a day’s low of Rs 1,683.25 on NSE today while the stock tumbled 3.92% to a day’s bottom of Rs 1,685.05 on BSE. Interestingly, shares of the Mumbai-based consumer goods manufacturer HUL hit an-all time high of Rs 1,780 today only on NSE.
According to a Reuters report, HUL shares saw their biggest intraday fall since 2 May 2018. HUL Q1 results 2019 missed the analyst estimates after the cost of materials climbed 16%. HUL delivered a steady Q1, helped by a low base, but volume growth trajectory is likely to taper down as base normalises and overall demand pickup remains modest, Reuters reported citing unidentified Jefferies analysts. Jefferies has downgraded HUL stock to “hold” from “buy” maintaining a target price of Rs 1,680.
Given additional headwinds of rising input prices and competitive pressures, it would be difficult for the company to maintain the pace of margin expansion, Jefferies said further. Kotak Institutional Equities was seen in a Reuters report as saying that consistency of performance is impressive. Notably, Morgan Stanley has retained “underweight” on the stock with a TP of 1,260 rupees. Global consumer companies like HUL are likely to face higher risks of a disruption from smaller, more agile companies nibbling at incumbents’ market share, a Reuters report said citing Morgan Stanley.