Hll Hits New 52-Week Low

The continuous bear hammering on Hindustan Lever Ltd (HLL), ever since the company declared its poor second quarter (Q2) results, pulled down the stock to its 52-week low today.

The stock went down today to Rs 167, its lowest in the last 52 weeks, on both the Bombay Stock Exchange and the National Stock Exchange. However, it managed to regain marginally before close.

A 4.19 per cent decline in Q2 net profit, which was announced on July 22, sent the stock down to Rs 181.55. Since then, the counter has witnessed selling pressure. The margin call, which was responsible for jittering the markets for the past four days, had a spill-over effect on other blue-chips including HLL.

On BSE, the scrip today hit a high to Rs 171.55 and closed at Rs 168.15, 1.67 per cent lower than its overnight close. The fall at the counter was, however, less o the NSE. The scrip lost 1.64 per cent to close at Rs 168. The combined volumes at the exchanges was nearly 16 lakh shares.

Analysts feel the spill-over effect of margin call would keep the entire market under pressure over the next few days and so will be the case for HLL. HLL's Q2 earnings per share stood at Rs 2.03 against Rs 2.12 a year ago.

During the quarter, the company's FMCG brands grew 1.7 per cent, while its home and personal care segment grew almost 4 per cent. Overall sales in foods categories dropped owing to lower sales of packet tea and branded staples.

Exports were significantly lower, largely due to the discontinuation of non-value adding traded exports.

Lower sales in domestic non-FMCG categories are mainly due to the disposal of the seeds business and the Diversey Lever business.