Remain invested in HUL, says Dipan Mehta

Dipan Mehta, Member- BSE & NSE advice investors to remain invested in HUL.

Mehta told CNBC-TV18, “The problem in HUL has been a phenomenal outperformer over the past several months and this certainly is a miss and therefore we are seeing the disappointment in the stock price. But I think from a long term investor point if view I think HUL still deserves to be a part of the portfolio and such minor variations in quarterly performances are to be expected.”
He further added, “These are not debt instruments which will give the perfect return QoQ, these are companies in the real world which are facing several challenges and opportunities as well. So, although the body language does sound pretty good for the management you have to assume that it’s entering into a phase of slightly slower growth. Also I think the kind of base effect also seems to be catching up and that also one needs to factor but none the less it’s a great company and investors who’ve got into the shares earlier should remain invested but I think fresh investments or increasing exposure could be put off by maybe 2-3 months, have a look at one more quarterly result and then assess whether there is any further return expected, whether it is going to be a market performer or outperformer.”