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Last Updated : Oct 26, 2016 06:37 PM IST | Source: CNBC-TV18

Positive on HUL, rural growth to be back in H2FY17: Analyst

Sanjay Manyal of ICICI Direct is positive on stocks of HUL and expects a volume growth of over 5 percent. Rural growth is expected to come due to good monsoon.

FMCG major Hindustan Unilever (HUL) has reported a 11.5 percent growth in second quarter profit at Rs 1,095.60 crore on other income and margin expansion despite slow revenue growth.

Speaking to CNBC-TV18 about the low volume growth of 1 percent, Sanjay Manyal of ICICI Direct says the expectation was somewhere between 1-5 percent and it is fairly negative that it has come just fractionally over 1 percent. 

He added the rural growth will come in the second half of FY17 mainly due to the good monsoon this year and this probably could be the last quarters where the company will see this kind of a muted revenue growth.

His call on the HUL stock remains positve even for long term and added that personal care business will grow at a faster pace.

"We remain positive for with 3-5 year perspective. Considering the income levels going up and we expect a volume growth of over 5 percent and there is no change of ratings at this point of time," said Manyal.
First Published on Oct 26, 2016 06:27 pm