Why HUL Share Price is Down Even After Healthy Results

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Why HUL Share Price is Down Even After Healthy Results
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- Hindustan Unilever Ltd. (NS: HLL ) reported its numbers for the first quarter of FY22 yesterday. It reported a net profit of Rs 2,061 crore, an increase of 9.5% from Rs 1,881 crore during the corresponding quarter last year. Total income came in at Rs 11,982 crore, compared to Rs 10,716 crore in FY21.

However, the markets have pulled the stock down 2.8% from Rs 2,434.9 on July 20 to Rs 2,367 as of this report. The reasons for this are two-fold:

  1. Rise in raw material cost: Ritesh Tiwari, HUL CFO said that there is “unprecedented inflation in key input materials”, with some commodities at 20-year highs. The company has had to increase prices in its tea, skin-care and laundry products.
  2. Sanjiv Mehta, chairman and managing director of HUL said, “Looking forward, we remain cautiously optimistic about the demand recovery. Our focus firmly remains behind delivering volume-led competitive growth and margins in a healthy range.” This translates to saying that a third wave can cause more uncertainty in the future.

That said, the company said that it is far better prepared in 2021-22 with respect to its supply chain, and that its product categories have shown remarkable resilience. It home care category grew at 12% while its beauty and personal care segment grew at 13%.

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  • Ashok Shah @Ashok Shah
    When operator decides to sell any stock, such ******and Bull story is required to convince the people. Period.
    Like 9
    • Sunit Keskar @Sunit Keskar
      @Ashok Shah I doubt if operator can play their game in Large Cap like HUL ?
      Like 5
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      100
  • Arpit Goyal @Arpit Goyal
    Becuase i purchase hul share
    Like 11
    • Antony Peter Raja @Antony Peter Raja
      It is always sagacious to invest in HUL when we get steep dip .
      Like 1
    • Aviral Agarwal @Aviral Agarwal
      Go ahead, 10 years down the line it will be much more, don't think twice :)
      Like 2
    • Aviral Agarwal @Aviral Agarwal
      Go ahead, 10 years down the line it will be much more, don't think twice :)
      Like 0
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