HUL may find support around Rs 200: Udayan

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HUL may find support around Rs 200: Udayan

Hindustan Unilever (HUL) has fallen a lot, said CNBC-TV18’s Managing Editor Udayan Mukherjee. The stock has underperformed and will continue to do so. “It is probably in its last 10% of its fall as such. It will probably slip a bit more and find support in Rs 200-210 and hold a Rs 20 range for some time.”

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Hindustan Unilever (HUL) has fallen a lot, said CNBC-TV18's Managing Editor Udayan Mukherjee. The stock has underperformed and will continue to do so. "It is probably in its last 10% of its fall as such. It will probably slip a bit more and find support in Rs 200-210 and hold a Rs 20 range for some time."

Here is a verbatim transcript of Mukherjee's comments on CNBC-TV18. Also watch the accompanying video.

I think HUL might bottom out in that Rs 200-215-220 kind of zone now because it is still expensive assuming that they will do anywhere between Rs 10.50-11 earnings this year at the end of this calendar. You are still talking about 22 PE multiple which is not exactly cheap but cheap by Levers historical standards. But it still generates lot of cash flow and very high return on equity. So global investors have this love for the stock and they typically tend to buy it around 20-21 times when they find it.

So I think Lever has underperformed and it may continue to underperform but it is probably in its last 10% of its fall as such, it will probably slip a bit more and find support in Rs 200-210 and hold a Rs 20 range for some time. So no excitement in the stock but if you want to aggressively short and play for a lot of downside, I think most of the juice has been squeezed out on the downside.