Hindustan Unilever gains in value and volume

Hindustan Unilever advanced 2.50% to Rs 233 at 14:40 IST on BSE on expectations that a thrust to the farm sector in Union Budget 2008-09 will boost rural demand.

Meanwhile, BSE Sensex was down 788.01 points or 4.56% to 16,768.43 as Asian stocks fell sharply amid growing concerns about the global impact of a US slowdown.

On BSE, 9.68 lakh shares were traded in the counter. The scrip had an average daily volume of 4.07 lakh shares in the past one quarter.

The stock hit a high of Rs 236.35 and a low of Rs 221.30 so far during the day. The stock had a 52-week high of Rs 244.10 on 8 January 2008 and a 52-week low of Rs 166 on 7 March 2007.

The large-cap scrip outperformed the market over the past one month till 29 February 2008, gaining 9.70% compared to the Sensex’s decline of 0.40%. It also outperformed the market in the past one quarter, rising 8.16% compared to Sensex’s decline of 9.22%.

The company’s current equity is Rs 220.80 crore. Face value per share is Re 1.

The current price of Rs 233 discounts its Q4 December 2007 annualized EPS of Rs 11.60, by a PE multiple of 20.08.

Besides 2% cut in Cenvat, the finance minister abolished xcise duty on tea & coffee mixes and puffed rice. The Budget also cut excise duty on specific packaging material used for soaps, detergents and toothpastes to 8% from 16%. Excise duty on breakfast cereals was also reduced from 16% to 8%.

Analysts fell that a slew of provisions made in favour of the farm sector, rural employment and higher disposable income will also benefit the company. The company derives a large part of its revenue from the rural sector.

Hindustan Unilever (HUL) reported 23.53% rise in net profit to Rs 6314.40 crore on 17.90% rise in total income to Rs 3847.10 crore in Q4 December 2007 over Q4 December 2006.

The company is engaged in manufacturing and marketing consumer products. The group operates through seven segments: soaps and detergents, personal products, exports, beverages, foods and ice creams.