Prefer Dabur, ITC to HUL, says Dhawan

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Prefer Dabur, ITC to HUL, says Dhawan

Prefer Dabur, ITC to HUL, says Sajiv Dhawan of JV Capital Services.

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Excerpts from Your Stocks on CNBC-TV18 Watch the full show » RELATED NEWS More downside in HUL: Sukhani Dabur India can test Rs 200: Sukhani Prefer ITC, Dabur India to Hindustan Unilever Keep Rs 164 stoploss in Dabur: Sukhani ALSO READ See previous views by Sajiv Dhawan See what other Experts & Brokerages are saying about Dabur India See messages about Dabur India Dabur India BSE | NSE 30/05/12 Are Mutual Funds betting on Dabur India?

Prefer Dabur , ITC to HUL , says Sajiv Dhawan of JV Capital Services.

Dhawan told CNBC-TV18, "HUL is relatively passive and less aggressive than a Dabur or an ITC. We prefer Dabur India in a sector. We have seen the sell off in HUL in the last week or so, so based on the price war, Dabur and ITC have held up. The market feels that HUL for its size and weight has managed generally is not likely to form much on the short term."

He further added, "Valuations are not cheap and that's another reason why investors are probably sitting on the sidelines. But if you got a longer term outlook maybe about 1-3 year, starting to accumulate on significant declines is probably okay. We would probably avoid the stock and would prefer Dabur India or ITC in the same sector."

Yesterday the share closed at Rs 219.60, down Rs 9.2, or 4.02%. Market capitalisation stands at Rs 48,571.76 crore.

The company touched its 52 week high Rs 306.00 and 52 week low Rs 218.70 on 28 Jul, 2009 and 12 Mar, 2010, respectively. Currently, it is trading -28.24% below its 52-week high and 0.41% above its 52-week low.

The company's trailing 12-month (TTM) EPS was at Rs 9.11 per share. The stock's price-to-earnings (P/E) ratio was 24.11. The latest book value of the company is Rs 9.33 per share. At current value, the price-to-book value of the company was 23.54. The dividend yield of the company was 3.42%.