HUL Stock Rallies 5%, M-Cap Close To Rs. 5 Lakh Crore

Shares of Hindustan Unilever in intra-day trade on February 12, 2020 rallied over 5.16% to hit a new high of Rs. 2264 on the BSE. With today's gains, the market-capitalisation (m-cap) of the company nears Rs. 5 lakh crore mark.

So, far during the month the stock of HUL has surged 11% as against sectoral index S&P BSE FMCG's decline of 0.06%, while Sensex inched higher by 2% during the same period.
Earlier on February 4, 2020, the company recorded a new high of Rs. 2204. So, far during the trade the market cap of HUL has scaled to Rs. 488368 crores.

Brokerage firm Motilal Oswal maintains 'buy' rating on the stock with a target price of Rs. 2490 per share. "HUL has been a stellar performer over the past decade, both in terms of earnings and stock price. Also, it has significantly outperformed some of its large-cap consumer peers over the same period. From a near-term perspective, favorable base in the next few quarters, expected recovery in the demand environment from Q2FY21, synergies from the GSK Consumer Healthcare merger, price increase in soaps and lower crude costs are likely to boost earnings," said the brokerage company.

Analysts are of the opinion that with market penetration as well as innovation as the key focus area of the FMCG major, the company will be able to realize growth as well as sustainable volume going forward. Also, at the same time, they see the company's earnings growth of 23% CAGR (on an organic basis) that includes GSK Consumer Healthcare merger to be maintained.

At 12:01, the stock of HUL quoted at Rs. 2254.05, up Rs. 101.25 or 4.70% on the BSE.

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