Hindustan Lever was done in by selling by FIIs on Tuesday, losing 1.10% to Rs 166.20.
By 11:35 IST, the scrip of the FMCG major was at the top of the list of losers in the 30-share BSE Sensex. By then, it had already reached a high of Rs 169.90 and a low of Rs 165.05. Over 314,000 Hindustan Lever shares were recorded as volumes on BSE.
HLL has lost 8.25% to its current levels from Rs 181.15 on 23 January 2003.
FIIs are believed to be offloading in HLL. Market talk has it that Salomon Smith Barney is selling on behalf of an unknown FII. Life Insurance Corporation is believed to have been buying on the counter over the last few sessions.
A shift in portfolio by FIIs has been the reason cited for the selling in HLL. No other fundamental reason can be traced for the current selling
HLL's quarterly results, in fact, have been in line with expectations. And analysts believe that the company should witness an improvement in top line in the coming quarters, albeit small. Analysts feel bottom line growth will be impressive in the January-March 2003 quarter, largely due to the focus on power brands, increase in the profitability of the foods business and due to the securing of the future of the non-FMCG businesses.
For the full year ended 31 December 2002, HLL recorded a 7% growth in bottom line to Rs 1,755.68 crore (Rs 17.55 billion), but a 7% drop in top line to Rs 9,954.85 crore (Rs 99.54 billion). For the fourth quarter ended 31 December 2002, HLL registered a 7% growth in bottom line to Rs 466.51 crore (Rs 4.66 billion) on a 2% decline in top line to Rs 2634.5 crore (Rs 26.34 billion). At the profit after tax but before EO level, the company has registered a 9% growth in net profit to Rs 542.84 crore (Rs 5.42 billion).
As on 31 December 2002, the promoters' holding in HLL was 51.6%, while the public, domestic institutions and FIIs held 21.4%, 13.4% and 12.83%, respectively.
BSE Code: 500696
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