The Hindu Business Line : HLL jumps with huge trading volumes

HINDUSTAN Lever Ltd (HLL) rose in today's trading along with sharp jump in trading volumes after a leading foreign broking firm upgraded the stock due to its good June quarter results.

The HLL stock rose 4.67 per cent to Rs 169.30 on the BSE with volumes of 1.21 crore shares and on the NSE, it closed at Rs 169.75, up 4.88 per cent, with volumes of 1.38 crore shares. Volumes were substantially higher than Wednesday's volumes of 12.56 lakh shares on the BSE and 37.60 lakh shares on the NSE.

Of the traded shares, 78.63 per cent was up for delivery on the BSE and 63.76 per cent on the NSE.

Brokers said the high delivery ratio shows that there was huge buying in the stock. They said most of the buying in today's trading was by FIIs.

A dealer with a domestic broking firm said the rise in stock price and volume was due to a foreign broking firm putting a `buy' recommendation on the stock. He said good June quarter result is the main factor for the `buy' recommendation.

For the second quarter ended June 30, 2005, HLL net profit rose 17 per cent to Rs 300.7 crore on net sales of Rs 2,836.3 crore - a growth of 10.3 per cent over the corresponding year-ago period.

"After a gap of over three years, HLL has witnessed double-digit sales growth for the second quarter and has also regained some of the lost ground in laundry and shampoo businesses," said an analyst with a domestic broking firm.

He said with the pricing war receding and buoyancy in market, HLL is bound to benefit by virtue of its leadership position.

"We believe downside for HLL is restricted in the home and personal care business; however, the up tick in the business will be gradual as penetration levels in the soaps and detergents business are quite high and upside potential is limited".

The consolidation of HLL's various businesses is also seen as positive. The merger of Vashisti Detergent with the company is one of the step in this direction, analysts said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Unlock ratios to find riddles to reason and reckon

Bull onslaught

Dubai exchange beckons Indian corporates

Solvay Pharma up on bonus hopes

HLL jumps with huge trading volumes

The FII flood is unabated, but for how long?

FIIs, firm Asian market add to buoyancy

Sasken Comm IPO subscribed 12 times

ICICI Venture invests Rs 42.5 cr in Sangam