HUL, Kitex Garments, Colgate-Palmolive hit 52-week low

Dabur India, United Breweries, M&M Financial Services and Federal Bank and from the BSE500 index hit 52-week lows.

Hindustan Unilever (HUL), Dabur India, Colgate-Palmolive (India), United Breweries, Federal Bank, Kitex Garments and Mahindra & Mahindra Financial Services from the BSE500 index touched their respective 52-week lows on the BSE in intra-day trade today.

Most of the fast moving consumer goods (FMCG) companies trading at their 52-week lows due to lower volume growth mainly on account of weak demand -  particularly in rural markets – coupled with a price deflationary environment and supply chain disruption caused by heavy rainfall and floods in Chennai impacted revenue growth.

Colgate –Palmolive (India) hit a 52-week low of Rs 852 on the BSE after the company reported 1% volume growth for the quarter ended December 2015 (Q3FY16) against 5% growth recorded in December 2014 quarter.

The unseasonal rains in South India and floods in Chennai city as well as destocking in certain accounts affected shipments for the quarter, Colgate said in a release.

HUL was down 2% at Rs 766, also its 52-week low on the BSE. Post Q3FY16 results, the stock dipped 7% from Rs 826 on January 14, compared to a marginal 0.04% rise in the S&P BSE Sensex.

According to Religare Institutional Research, going forward, HUL management expects market growth to be largely volume-driven with rural growth remaining subdued.

Kitex Garments dipped 11% to Rs 419, extending its Friday’s 13% fall on the BSE, after the company reported a single digit 4% year-on-year growth in net profit at Rs 24 crore for Q3FY16 due to lower sales. The company engaged in textiles business had profit of Rs 23 crore in the same quarter year ago and Rs 27 crore in September 2015 quarter.

The stock hit 52-week low of Rs 406 in intra-day trade today. It fallen over 60% from its 52-week high of Rs 1,070 touched on July 3, 2015.