InvestorQ : Why did Hindustan Unilever shares correct sharply on Friday 30 April despite such good quarterly numbers?
Arusha Ray made post

Why did Hindustan Unilever shares correct sharply on Friday 30 April despite such good quarterly numbers?

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4 days ago
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You are right that the HUL stock corrected more than 3% on Friday despite some very good numbers. Let us look at the numbers for the quarter first. Its net profits were up 41% at Rs.2,143 crore while the revenues were up 34.6% at Rs.12,132 crore. HUL also had seen sold growth across its key verticals like food products, home care needs and beauty products.

Despite that, the stock slipped by over 3% in the midst of a weak market as investors flagged off some major concerns over the spike in raw material costs and a likely slowdown in demand in the coming months on account of the lockdowns. However, factories are still functioning and hence the output is not likely to get affected, so that should be a positive.

However, brokerages continued to be positive on HUL. For example, Motilal cut EPS forecasts for FY22 not retained for FY22 with positive outlook. Kotak and Axis Securities stayed positive on the stock on organic volume growth potential. JM was a little more cautious as it felt that the cost savings edge may not sustain for the company. Finally, Edelweiss remained extremely bullish on the stock on rural demand levers.

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