HUL open offer begins at Rs 600 per share, stock trades flat

AppId is over the quota
AppId is over the quota

At present, Unilever PLC has 52.48 per cent stake in HUL. The proposed open offer is valued at $5.4 billion and post the offer the stake will go up to 75 per cent.

At 11:00 a.m.; HUL was trading 0.4 per cent lower at Rs 590.85. It hit a low of Rs 589.05 and a high of Rs 594.35 in trade today.

Rahul Singh, Head of Research, Standard Chartered Securities in an interview with ET Now said that the valuations seemingly look attractive, but if you compare it with the previous open offers we might get very less or lukewarm kind of tendering in this process.

"Long term, we continue to be positive on Hindustan Lever and anyone with a long term view may or may not choose to tender their shares in this offer if they think the premium is not good enough," he added.

HUL is a market leader in the fast moving consumer goods business in India, with brands spanning categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants etc.

The stock is up over 20 per cent since April and has remained in a range so far in the month of June.

According to analysts, minority investors can tender their stake in the company at the open offer price. At Rs 600 per share, the stock is valued at around 34xtimes FY15 earnings, making it look expensive in the short term.

The performance of Hindustan Unilever Ltd was a mix bag in Q4FY2013. The volume growth of 6 per cent in the domestic consumer business was ahead of the Street's expectation; however, the same is way below the 10% volume growth clocked by the company in the past.

"We believe the next two quarters will have to be keenly monitored in terms of any improvement in the volume growth," Sharekhan said in a note.

The brokerage firm broadly maintains their earnings estimates for FY2014 and F2015.

We have collated views from different brokerage firm as to what investors should do with the open offer:

CLSA: Open offer price if attractive; Recommend investors to sell the stock

IDFC: Subscribe to open offer; Stock is getting re-rated

13 en Stock nouveau marché commerce conseils

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D-Street gives thumbs-up to Budget; give it 7 on 10; top stock bets

AppId is over the quota
AppId is over the quota
NEW DELHI: Analysts on Dalal Street gave a thumbs-up to Arun Jaitley's maiden Budget 2014 as it was able to strike a fine balance between offering just the right incentives to various sectors to revive growth & job creation and his math on fiscal deficit.

On a scale of 1-10 most analysts on the Street gave a rating on 7 or 8 the Budget 2014 as it is expected to revive investment cycle and spur growth in Asia's third largest economy.

Even though markets corrected on the Budget Day, experts' view that the long term trend remain intact and investors use every decline to enter markets.

"We rate the Budget at 8 on a scale of 10. It is expected to spur the next wave of growth getting the Indian economy out of its worst growth in over a decade," said Sudhakar Ramasubramanian, MD- Aditya Birla Money Ltd.

"Modi government has lived up to the voter's optimism. While the implementation remains the key, Indian markets are set for a good time in the foreseeable future," he added.

Ramasubramanian is positive on sectors like Banking, Infrastructure, Capital Goods, Real Estate, Power and Auto. L&T, Maruti, ICICI Bank, Oberoi Reality and ITNL.

According to analysts, the current market set up has all the ingredients of structural bull-run in place, and advice investors to remain invested in India Growth Story and increase exposure in fundamentally well researched stocks to achieve their financial goals.

Dharmesh Mehta of Axis Capital rate Budget 3.5-4 on a scale of 5 (or 7-8 on a scale of 10). "Clearly, markets have liked the Budget and there is nothing which is negative, except that we all expected the retrospective tax, which is not gone types, but it is not even there. So it is like a little bit of grey area," he added.

Mehta is of the view that the worst is over for the market and upcoming earning season is likely to give further direction to markets. The maiden budget of NDA government is well balanced and growth oriented with a number of measures across sectors to kick start investments in the economy.

The minister said that the government is committed to achieve fiscal deficit of 4.1 per cent for 2014-15 and set a target of fiscal deficit of 3.6 per cent for 2015-16 and 3 per cent for 2016-17 which is very positive.

The government has come up with a series of measures for individuals as well including rebate on interest on home loans, hike in limit under Section 80C and increase in personal income tax limit.

"The budget has also ironed out several operational issues that have been plaguing the capital market with introduction of single KYC and one demat account for all transactions across financial sector space," said Jayant Manglik, President-retail distribution, Religare Securities Ltd.

Top stocks in focus post Budget:

All the stocks indicated below have a positive impact as economic growth traction improves. Hike in Life insurance helps ICICI Bank capitalise itself. Passage on Insurance Amendment Bill could be a positive trigger for the bank.

HUL open offer begins at Rs 600 per share, stock trades flat

AppId is over the quota
AppId is over the quota

At present, Unilever PLC has 52.48 per cent stake in HUL. The proposed open offer is valued at $5.4 billion and post the offer the stake will go up to 75 per cent.

At 11:00 a.m.; HUL was trading 0.4 per cent lower at Rs 590.85. It hit a low of Rs 589.05 and a high of Rs 594.35 in trade today.

Rahul Singh, Head of Research, Standard Chartered Securities in an interview with ET Now said that the valuations seemingly look attractive, but if you compare it with the previous open offers we might get very less or lukewarm kind of tendering in this process.

"Long term, we continue to be positive on Hindustan Lever and anyone with a long term view may or may not choose to tender their shares in this offer if they think the premium is not good enough," he added.

HUL is a market leader in the fast moving consumer goods business in India, with brands spanning categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants etc.

The stock is up over 20 per cent since April and has remained in a range so far in the month of June.

According to analysts, minority investors can tender their stake in the company at the open offer price. At Rs 600 per share, the stock is valued at around 34xtimes FY15 earnings, making it look expensive in the short term.

The performance of Hindustan Unilever Ltd was a mix bag in Q4FY2013. The volume growth of 6 per cent in the domestic consumer business was ahead of the Street's expectation; however, the same is way below the 10% volume growth clocked by the company in the past.

"We believe the next two quarters will have to be keenly monitored in terms of any improvement in the volume growth," Sharekhan said in a note.

The brokerage firm broadly maintains their earnings estimates for FY2014 and F2015.

We have collated views from different brokerage firm as to what investors should do with the open offer:

CLSA: Open offer price if attractive; Recommend investors to sell the stock

IDFC: Subscribe to open offer; Stock is getting re-rated

Taking stock of 2 M [infographic]

Thanks Mr. Lavigne, Assistant Editor Web | July 10, 2014 4:42 PM EDT

Today, two lines of the world largest container announced its intent to launch a sharing agreement 10 years vessels, dubbed 2 M, to cover more ports with direct links and improve efficiency through a better use of the capabilities of the ship and economies of scale.