HUL presents good opportunity to GSK shareholders; to add value in long run

Presence of latter in fast-growing segments to add value in long run

From the share-swap ratio angle, the Hindustan Unilever (HUL)-Glaxosmithkline Consumer Healthcare (GSKCH) deal augurs well for the latter’s shareholders. However, given the premium valuations of HUL, which may cap near-term returns from the stock, should GSKCH’s shareholders stay invested? 

Analysts believe that growth prospects for HUL opens up a good opportunity for GSKCH’s shareholders and they should check in to the country’s largest FMCG player.

“GSKCH’s shareholders are getting HUL shares at a discount and the strong growth potential of HUL justifies the premium valuation. Thus, the former could get good returns in the medium-to-long term,” says Vishal Gutka, AVP