Novel coronavirus has hit the economy of almost every sector all across the globe. India is no exception, but one of the companies in the FMCG sector is still throbbing.
All thanks to the increased demands of hygiene products. Shares of Hindustan Unilever Limited are up 5.5 percent so far this year as compared to a 20.5 percent slide in the Nifty FMCG Index and a 36 percent drop in the benchmark Nifty 50.
Investec which has ‘Buy’ rating on stocks of HUL said, “Stocking goods for future use owing to Covid-19 outbreak-led uncertainty and cost-cutting measures will aid HUL’s earnings.”
According to Investopedia, a buy rating, also known as a strong buy, is an analyst’s recommendation to buy a security, on a scale of “buy, outperform, hold, underperform, sell.”
Edelweiss, which also suggests ‘Buy’ said, HUL was a key beneficiary of rural demand recovery and herbal push. Volume growth is likely to sustain on the back of its market leadership, strong distribution network and use of analytics.
Analysts still see an upside of 12 percent from Tuesday’s close for HUL, according to the average of estimates tracked by Bloomberg. Nearly 70 percent (of the 30 analysts) recommends ‘Buy’ and only 5 percent suggest ‘Sell’. The rest have a ‘Hold’ rating.