Hindustan Unilever gains 5% in two-days on brokerage upgrade

The stock up nearly 3% at Rs 797, extending its previous day's 2% gain on NSE.

Hindustan Unilever is trading higher by nearly 3% at Rs 797, extending its previous day’s gain on NSE, on reports that a foreign investment bank upgraded the stock to buy from hold and also raised its target price for the stock.

The stock opened at Rs 779 and touched high of Rs 799 on NSE. A combined 874,748 shares changed hands on the counter till 0945 hours on NSE and BSE.

In past two trading sessions, the stock has rallied 5% from Rs 760 on January 5, as compared to 2.7% decline in the benchmark CNX Nifty.

According to Reuters report, Deutsche Bank upgraded the stock to buy with a target price of Rs 900 per share.

Meanwhile, Amnish Aggarwal analyst at Prabhudas Lilladher retains “Accumulate” rating on the stock.

Hindustan Unilever is witnessing early signs of uptick in consumer demand across rural and urban India in the past 2/3 months, however poor offset of winter is a near term drag, said analyst in a report dated December 15, 2014.

According to analyst, the company is one of the key beneficiaries of decline in input costs led by crude price crash, however selective price corrections in selling and distribution and increased advertising and promotion across categories will limit the gains.