A normal monsoon, higher crop realisations and government measures for the segment will be critical for demand improvement going ahead.
In Q4FY22, the country's largest FMCG major saw net profit climb by 5.4 per cent year-on-year (YoY) to Rs 2,304 crore, compared to Rs 2,186 crore from a year-ago period.
While analysts see near-term margin compression, on expected lines, due to rise in commodity prices, they believe HUL is relatively better placed to fight the inflation woes.
The company's board has recommended a final dividend of Rs 19
HUL Q4 preview: Analysts lack consensus on the net profit change from last year. However, all estimates showed that it will likely fall between 3-9 per cent on a sequential basis
Among FMCG stocks, Adani Wilmar seems to be better placed at current levels as per the technical charts.
Palm oil is used in products like cooking oil, processed foods, cosmetics and biofuels.
A YoY fall in volumes in the March quarter would be a first in seven quarters
Instead of a recovery in gross margins in fiscal 2022-23 (FY23), Jefferies now builds-in 50-200 basis point (bps) YoY decline, assuming crude stays closer to $100 a barrel and palm oil at $1,500/MT
Despite the correction, analysts at HDFC Securities expects more valuation risks in the next few years
According to the technical analyst from Anand Rathi, it is a good time to buy HUL as the stock recently retested its 200-WMA after a gap of 10 - 12 years.
Reliance Industries is likely to be in limelight as the company is looking to take advantage of the surging diesel demand in Europe in the backdrop of Russia-Ukraine conflict.
Business Standard brings you the top headlines on Wednesday
HUL hit a fresh 52-week low of Rs 1,942, down 4% in intra-day trade today. The stock has tanked 15% in the past two weeks.
Apart from the 8 stocks among the Nifty50 index, a total of 26 stocks too dropped to their respective 52-week lows among the Nifty500 index.
The price increases come on the back of constant rise in raw material costs
In the past six months, HUL and Britannia have underperformed the market by falling 20 per cent and 15 per cent, respectively, as against 1 per cent decline on the S&P BSE Sensex.
Nitin Paranjpe appointed as non-executive chairman, Sanjiv Mehta to continue as CEO & MD
Business Standard brings you the top headlines on Thursday
Major FMCG stocks are not showing exciting structure on charts, better play is to avoid them.