For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

HUL Gains As Soc Gen Buys 1.2 Crore Shares, Brokerages Remain Bearish

By Staff
|

Shares of Hindustan Unilever Limited (HUL) gained over 3 percent on Friday after foreign portfolio investor Societe General picked up 1.29 crore shares of the 5.69 percent stake off-loaded by GSK on Thursday.

British drugmaker GlaxoSmithKline Pte (GSK) and Horlicks sold their 5.69 percent equity in HUL on Thursday via a bulk deal to domestic and foreign investors causing the stock to crash in intraday trade.

HUL Gains As Soc Gen Buys 1.2 Crore Shares, Brokerages Remain Bearish
Hindustan Unilever: Quotes, News
BSE 2007.55BSE Quote24.65 (-1.23%)
NSE 2009.85NSE Quote22.25 (-1.11%)
 

Hindu Business Line reported that Societe General was one of the buyers and Morgan Stanley, HSBC, JPMorgan were the advisors to the deal.

Brokerages remain positive on the stock after the stake sale.

Earlier this year, HUL completed the merger of GSK Consumer Healthcare with itself and acquired Horlicks brand for India from GSK for Rs 3,045 crore. New shares were issued to the companies as part of the merger.

Global research firm Credit Suisse maintained its outperform call on the stock with target of Rs 2,400 per share. The call was based on the view that GSK's 5.7 percent stake sale removes the key overhang. It also said that premium of its peers Britannia Industries and Dabur India has narrowed to 5-15 percent after the recent correction.

"GSK Group selling HUL shares will reduce the supply overhang in the stock and any correction in the stock price should be considered as an opportunity to invest in a cash-rich company from a long-term perspective," said Sharekhan as quoted by Economic Times.

"Post normalisation of the business environment, HUL will see faster recovery in its financial performance on account of its leadership positioning in key categories, strong distribution reach, and the fact that 50-55 per cent of domestic portfolio is catering to essential categories," it added.

IIFL Securities said that funds generally bearish on the markets will look at parking cash in HUL in the current environment.

Read more about: hul hindustan unilever limited
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more