With a market capitalization of Rs 6.87 lakh crores, the stocks of Hindustan Unilever Limited (HUL), a fast-moving consumer goods manufacturer and marketer selling beauty and personal care items, etc, soared up to 3.50 percent to hit its 52-week high level of Rs 2,937.50 on Monday.
On June 21st, 2024, Trade Brains initiated coverage on Hindustan Unilever Limited, providing a target price of Rs 2,910 apiece. Within around 2.50 months, the FMCG company’s stock, rallied approximately 20 percent, and hit the mentioned target price, going on to hit its fresh 52-week high price on September 9th, 2024.
Some of the factors highlighted in Trade Brain’s research report include increasing operating revenues from each business segment, aggressive management guidance, and focusing on continuous innovation & premiumization. Click here to read the report.
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One of the probable factors leading the shares to rise today pertains to a recent BSE filing dated 6th September 2024 wherein the FMCG company’s Board of Directors decided to constitute a committee of Independent Directors for a detailed evaluation of HUL’s ‘Ice Cream’ business and to make the necessary recommendations to the Board.
The Board also granted its approval to explore potential structures and alternatives for the same. Furthermore, the committee’s recommendations will be presented to the Audit Committee and the Board of Directors for review.
The discussions regarding its ice cream business began in March 2024 when Unilever PLC, HUL’s parent entity, announced its intention to separate its global Ice Cream business across jurisdictions.
Written by Amit Madnani
