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Nomura, Credit Suisse Cut HUL Rating; Shares Fall

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A number of investment banks, including Credit Suisse and Nomura, cut their ratings on Hindustan Unilever Ltd, a day after the country's largest consumer goods maker disappointed investors with slower-than-expected volume growth and a hike in royalty payments.
 
Credit Suisse cut its rating on Hindustan Unilever to "neutral", while domestic brokerage IDFC downgraded it to "underperformer". CLSA cut the company to "sell" from "outperform," while Nomura cut its rating to "reduce" from "neutral".

Shares in Hindustan Unilever extend their fall in opening trade on Wednesday after a number of investment banks, including Credit Suisse and Nomura, cut their ratings on slower-than-expected volume growth and a hike in royalty payments.

On Tuesday (22 January) , Hindustan Unilever Ltd (HUL), India's largest consumer goods maker, reported a 16 per cent jump in third-quarter net profit, and reported low volume growth and a rise in royalty payments. At 9:19 a.m., the shares were down 5 per cent at Rs 456.65.

(Reuters)