Morgan Stanley cuts HUL to underweight

Cites disappointing Oct-Dec volume growth and impact on earnings from its hike in royalty payments

Morgan Stanley downgraded Hindustan Unilever Ltd to 'underweight' from 'equal-weight', citing disappointing October-December volume growth and the impact on earnings from its hike in royalty payments.

Morgan Stanley also cut its price target to Rs 405 from Rs 510. A slew of other banks have also cut their ratings on Hindustan Unilever after its quarterly results on Tuesday.

Hindustan Unilever shares were down 5.3% as of 0348 GMT.