HUL share price slumps after weak Q4 results; should you buy or sell stock?

By: |
Published: May 6, 2019 11:02:12 AM

Shares of FMCG giant Hindustan Unilever slumped in trade on Monday morning, after the firm reported weak Q4 results for the Jan-Mar period.

HUL Q4 net profit, HUL Q4 result, FMCG major Hindustan Unilever, January-March quarter, HUL financial resultsHindustan Unilever shares plunged nearly 2% to hit the day’s low at Rs 1,660 on BSE.

Shares of FMCG giant Hindustan Unilever slumped in trade on Monday morning, after the firm reported weak Q4 results for the Jan-Mar period. Hindustan Unilever shares plunged nearly 2% to hit the day’s low at Rs 1,660 on BSE. In the latest quarter, HUL has reported a 13.8% on-year rise in its net profit to Rs 1,538 crore. In the comparable period previous fiscal, HUL’s figure came in at Rs 1,351 crore. The total revenue for the quarter under review increased by 8.9% on-year to Rs 9,808 crore as against Rs 9,003 crore in the March quarter of FY18, HUL said in a statement to the exchanges.

Watch: Hindustan Unilever reports a mixed set for Q4


Taking stock of the reported results, global brokerage firm Jefferies noted that while the Q4 results are better than peers, they are still not good enough. According to the firm, 7% volume growth on an already high base was a positive surprise. The stock’s valuation at 45 times FY21 price-to-earnings.  Jefferies said that it cuts base business 3%. Jefferies has a hold rating on the stock with a target price of Rs 1,820.

Also read: Warren Buffett at Berkshire Hathaway AGM 2019: Won’t spend another dime on share buybacks unless this happens

Global firm CLSA noted that the volume growth of 7% looks good in the context of peer performance. There is a marked shift in near-term outlook as growth rates have moderated. The margin gains will remain modest from the current levels. CLSA said that it is yet to build in an upgrade from the acquisition of GSK. CLSA has an outperform rating on the shares with a target price of Rs 1,950. The firm’s previous share price target was at Rs 2,010.

HUL delivered a robust performance for the last quarter for the fiscal ended March-2019, despite some sluggishness in rural market growth, said Chairman and Managing Director Sanjiv Mehta. The company’s focus on leading the market development and making core robust has helped in producing good results, he added.

(Please consult your financial advisor before taking any investment related decision)

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition