India's largest FMCG player Hindustan Unilever's share price surged to a fresh lifetime high as the market cheered the Kwality Wall's maker's plan to evaluate way forward for its ice cream business.
On March 19, Unilever, the parent company of HUL, announced its intention to separate its global ice cream business across jurisdictions.
"After due consideration, HUL's Board has decided to constitute a committee of Independent Directors of the Company (“Independent Committee”) to evaluate in detail the prospects of the Company’s Ice Cream business and to make recommendations to the Board," said the FMCG giant in a filing with the bourses.
At 1.10 pm, HUL shares were quoting Rs 2,923 on the NSE, higher by three percent compared to the previous session's close.
Follow our live blog to catch all the updates
During the meeting, HUL's board also gave its approval to explore potential structures and alternatives for the same. Based on the recommendation of the "Independent Committee", the matter will be placed for final consideration of the Audit Committee and the Board at their respective meetings to be scheduled in due course.
The optimism in HUL also lifted the Nifty FMCG index to a fresh life-time high, marking the index as an island of green in an otherwise muted market. Other gainers on the FMCG index were United Breweries, Dabur India, United Spirits and Marico.
"HUL looks to maintain its thrust on reshaping the portfolio in high-growth spaces, where it has identified categories like home care liquids, beauty, body wash, and international cuisines. Amid the evolving consumer base, the channel of future remains key for growth. HUL is engaging with channel partners to better address consumer needs," noted Emkay Global in a recent note.
The brokerage has a target price of Rs 3,200 per share, indicating an upside of 13 percent.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
