HLL shines
FMCG giant Hindustan Lever rose nearly 3% to Rs 242.40 on reports it is planning another price hike for some of its key products.
The stock had recovered in the past few days following announcement of Q3 results. From Rs 228.75 on 30 October, the scrip had risen to Rs 237.55 on 2 November. It had eased a bit to Rs 235.50 on 3 November. The company announced Q3 results during trading hours on 31 October.
Earlier, the stock had surged during mid-September to late September but the rally had soon fizzled out. From Rs 258.65 on 26 September, the scrip had declined to Rs 228.75 by 30 October. Earlier, it had surged to Rs 258.65 on 26 September from Rs 229.10 on 12 September.The current price of Rs 242.40 discounts its 9-month January-September 2006 annualised EPS of Rs 4.80, by a PE multiple of 50.5.
As per reports, Hindustan Lever is once again poised to increase the prices of its fast moving consumer goods products by 4-10%. This time the price increases will be mainly in shampoos, soaps and detergents. The price of Clinic Plus shampoo (400 ml) would increase from the current Rs 99 to Rs 104. The price of Sunsilk shampoo (200 ml) would go up from Rs 140 to Rs 154.
This would be the fourth price increase by the company this year. HLL has been increasing prices to overcome the escalating input costs and to grow its margin at a time when consumers have got more money in their pockets. However, the company has adopted a gradual price increase strategy so that the consumers do not feel the pinch.
Over the past two years, HLL's business has turned around, buoyed by stronger topline growth, improvement in margins and higher fiscal benefits.For Q3 September 2006, HLL’s profit before tax and before extra-ordinary items rose 17.7% to Rs 383 crore from Rs 325.35 crore in Q3 September 2005. The leading FMCG company registered a 12.2 per cent increase in sales to Rs 3,066.01 crore from Rs 2,731.54 crore.
The stock had recovered in the past few days following announcement of Q3 results. From Rs 228.75 on 30 October, the scrip had risen to Rs 237.55 on 2 November. It had eased a bit to Rs 235.50 on 3 November. The company announced Q3 results during trading hours on 31 October.
Earlier, the stock had surged during mid-September to late September but the rally had soon fizzled out. From Rs 258.65 on 26 September, the scrip had declined to Rs 228.75 by 30 October. Earlier, it had surged to Rs 258.65 on 26 September from Rs 229.10 on 12 September.The current price of Rs 242.40 discounts its 9-month January-September 2006 annualised EPS of Rs 4.80, by a PE multiple of 50.5.
As per reports, Hindustan Lever is once again poised to increase the prices of its fast moving consumer goods products by 4-10%. This time the price increases will be mainly in shampoos, soaps and detergents. The price of Clinic Plus shampoo (400 ml) would increase from the current Rs 99 to Rs 104. The price of Sunsilk shampoo (200 ml) would go up from Rs 140 to Rs 154.
This would be the fourth price increase by the company this year. HLL has been increasing prices to overcome the escalating input costs and to grow its margin at a time when consumers have got more money in their pockets. However, the company has adopted a gradual price increase strategy so that the consumers do not feel the pinch.
Over the past two years, HLL's business has turned around, buoyed by stronger topline growth, improvement in margins and higher fiscal benefits.For Q3 September 2006, HLL’s profit before tax and before extra-ordinary items rose 17.7% to Rs 383 crore from Rs 325.35 crore in Q3 September 2005. The leading FMCG company registered a 12.2 per cent increase in sales to Rs 3,066.01 crore from Rs 2,731.54 crore.
posted by SY at 7:31 PM
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