Hindustan Unilever starts to feel the heat of India GDP growth slowdown2 min read . Updated: 20 Mar 2019, 04:03 AM IST
- One of the big concerns for HUL is whether volume growth will continue to meet or beat expectations as Indian economy slows
- That said, synergies from the completion of the HUL-GSK merger is something that HUL investors can look forward to
For some time, defensive stocks, such as Hindustan Unilever Ltd (HUL), were among the firms investors preferred. But now a risk-on trade is happening at a time when HUL begins to feel the heat of slacking GDP (gross domestic product) growth. In the past one month, the stock has been under stress, falling 2.2% in contrast to a 9.47% rise in the Nifty 500 index. And, valuations are sky-high at 59 times estimated FY19 earnings, which itself makes a case for a correction.
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