<ul><li>India’s largest consumer goods company HUL posted an increase in revenue for the June quarter, primarily due to the <keyword id="6373926" type="UNKNOWN" weightage="20" keywordseo="horlicks">Horlicks</keyword> boost from the GSK acquisition.</li><li>All but one of HUL’s segments posted a reduction in its revenue – only the Food &amp; Refreshment segment posted a growth of 34%.</li><li>Shareholders, on the other hand, hinted that they want more than just a Horlicks boost – the share price of HUL took a knock on back of earnings, falling by 3.6%.</li><li><a href="https://www.businessinsider.in/stock-market/markets/news/a-deal-with-google-is-not-the-only-lifeline-vodafone-idea-is-betting-on/articleshow/76086104.cms">Check out the latest news and updates on Business Insider.</a></li></ul>Such is the power of Horlicks – a 140-year old brand that has given a boost to the topline of Hindustan Unilever (HUL), turning a 7% fall in sales to a 7% increase. As a result, HUL posted a 52% jump in revenue in the food and refreshment segment in the June quarter.<br /><br />However, even though Horlicks boosted HUL’s revenue, shareholders want more. In the first hour of trade today, HUL’s shares were down by 3%, signalling that shareholders are not happy with the June results.<br /><br />  <div type="image" title="Hindustan Unilever share price" msid="77100892" hostid="261" caption="&amp;lt;p&amp;gt;Hindustan Unilever share price in July, 2020&amp;lt;/p&amp;gt;"></div><br />In the run up to the earnings, HUL’s shares surged by 7.5%. However, since the earnings were released, the company’s shares have taken a beating, falling by as much as 3.6%.<br /><br /><strong>Here’s how HUL performed in the June quarter<br /></strong><br />HUL is the largest consumer goods company in India, and the GSK acquisition might have saved it the blushes in the June quarter. Despite the lockdown impacting its business, HUL posted an increase of 7% in its revenues, and a 4.2% increase in its profit.<br /><br />If the benefit from the GSK consumer business takeover is removed, HUL’s revenues would have shrunk 7%. Barring the food and refreshment segment, every other segment posted a fall in revenue.<br /><br /><table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Segment<br /><br /></td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Revenue (in crore)<br /><br /></td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Growth<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Others<br /><br /></td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">171<br /><br /></td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-36%<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Beauty &amp; Personal Care<br /><br /></td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">4039<br /><br /></td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-12%<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Home Care<br /><br /></td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">3392<br /><br /></td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-2%<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Food &amp; Refreshment<br /><br /></td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">2958<br /><br /></td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">34%<br /><br /></td></tr></tbody></table><br /><em>Source: HUL</em><br /><br />“Domestic Nutrition business performed well; immunity boosting Horlicks with added Zinc was launched in the quarter,” HUL said in a statement.<br /><br />Other products drove HUL’s revenue down. “Ice creams, foods solutions and our vending businesses which are driven primarily by out of home consumption were massively impacted by the lockdown and closure of restaurants/eateries,” the company added.<br /><br /><strong>Near-term uncertain, but HUL reassures its shareholders<br /></strong><br />Despite near-term outlook remaining uncertain, HUL tried to assuage its shareholders.<br /><br />“While constraints continue due to restrictions in several parts of the country and the near-term demand outlook remains uncertain, we remain well positioned to drive competitive, profitable and responsible growth,” the company said.<br /><br /><strong>SEE ALSO:<br /><br /><a href="https://www.businessinsider.in/business/corporates/news/hindustan-unilever-limited-first-quarterly-earnings-profit-revenue-and-share-price-chart/articleshow/77085971.cms">GSK merger became a pain killer for HUL</a><br /><br /><a href="https://www.businessinsider.in/business/corporates/news/hindustan-unilever-limited-ceo-sanjiv-mehta-says-the-product-inventory-range-will-be-smaller-and-simpler-hereon/articleshow/76128468.cms">HUL CEO says the product inventory range will be smaller and simpler hereon⁠— analysts believe others may have the same plan</a><br /><br /></strong><a href="https://www.businessinsider.in/business/corporates/news/hul-vs-emami-a-lawyer-explains-whats-fair-and-not-in-the-battle-of-brands/articleshow/76829901.cms"><strong>HUL vs Emami — A lawyer explains what’s fair and not in the battle of brands</strong></a><br />

Horlicks helps HUL clock a profit – but shareholders want more

<ul><li><strong>HUL acquired brand Horlicks from GSK for about $398 million (₹ 3,041 crore) for the Indian market.<br /></strong></li><li><strong>HUL’s parent company Unilever paid around $54 million (₹415 crore) for Horlicks brand for other geographies. <br /></strong></li><li><strong>Edelweiss research predicts that by the end of the financial year 2020, HUL will be leading the food company business in India after buying out the Horlicks brand.</strong></li></ul>Even in a volatile market, Hindustan Unilever’s (HUL) share price saw a 19% surge in the last one month. All thanks to the HUL and GlaxoSmithKline Consumer Healthcare (GSK) merger, which will make it India's biggest food company.<br /><br />            <div type="image" title="HUL&amp;#39;s BSE Shareprice" msid="75245618" hostid="261"></div><strong>Source:BSE<br /></strong><br />The secret of the strength in the HUL-GSK deal is Horlicks, a health drink — which is made of wheat flour and malted wheat. However, Horlicks was earlier owned by one of GSK Plc’s group entities and hence did not automatically come into HUL’s fold pursuant to the merger. <br /><br />HUL paid GSK $398 million (₹30.5bn) more to buy Horlicks for the Indian market. And Unilever, HUL’s British-Dutch parent company, too paid around $54 million (₹4.15bn) to sell Horlicks in other countries.<br />            <div type="Article" hostid="261" msid="75243841" title="Coronavirus cases in India rise to 17,265— with 1553 new cases in the last 24 hours" mstype="2" mssubtype="0"></div><br /><strong>Horlicks accounts for 43% share in HFD category<br /></strong><br />Almost 90 years after its India debut, Horlicks commands a premium and has managed to maintain its strong 43% volume share in India’s ₹6,500 crore health food drinks (HFD) category, according to <a href="https://economictimes.indiatimes.com/industry/cons-products/fmcg/gsk-fy19-value-share-in-health-drinks-weakens/articleshow/69350925.cms?from=mdr">ET</a>.<br /><br />And it could become much bigger under HUL whose distribution network is thrice as vast as compared to GSK in India.<br />            <div type="image" title="horlicks/twitter" msid="75245664" hostid="261"></div><br />Hence, just like its earlier acquisition of Indulekha, an ayurvedic oil for hair fall control, which saw a four-fold revenue jump in the last four years, HUL can propel Horlicks to new heights too. <br /><br />According to Edelweiss, the HFD category continues to provide immense growth opportunities. It grew by as much as 14-15% for a decade before the current economic slowdown amid coronavirus.<br /><br />Edelweiss research predicts that by the end of the financial year 2020 HUL will lead the food business in India much ahead of its competitors Nestle India, Britannia and ITC.<br /><br /><strong>HUL to become the biggest food company in India<br /></strong><table style="width:341.0pt;margin-left:4.7pt;border-collapse:collapse;mso-yfti-tbllook: 1184;mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tbody><tr> <td style="width:132.0pt;border:solid windowtext 1.0pt; mso-border-alt:solid windowtext .5pt;background:white;padding:0in 5.4pt 0in 5.4pt; height:16.5pt"> <b>Food companies</b><br /><br /> </td> <td style="width:209.0pt;border:solid windowtext 1.0pt; border-left:none;mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt: solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt;background: white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> <b>Turnover (</b><b>₹</b><b> crore) FY20E</b><br /><br /> </td> </tr> <tr> <td style="width:132.0pt;border:solid windowtext 1.0pt; border-top:none;mso-border-left-alt:solid windowtext .5pt;mso-border-bottom-alt: solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt;background: white;padding:0in 5.4pt 0in 5.4pt;height:47.25pt"> <b>Hindustan Unilever (F&amp;R) and GSK consumer</b><br /><br /> </td> <td style="width:209.0pt;border-top:none;border-left: none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt; background:white;padding:0in 5.4pt 0in 5.4pt;height:47.25pt"> ₹12763<br /><br /> </td> </tr> <tr> <td style="width:132.0pt;border:solid windowtext 1.0pt; border-top:none;mso-border-left-alt:solid windowtext .5pt;mso-border-bottom-alt: solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt;background: white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> <b>Nestle India</b><br /><br /> </td> <td style="width:209.0pt;border-top:none;border-left: none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt; background:white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> ₹12295<br /><br /> </td> </tr> <tr> <td style="width:132.0pt;border:solid windowtext 1.0pt; border-top:none;mso-border-left-alt:solid windowtext .5pt;mso-border-bottom-alt: solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt;background: white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> <b>Britannia</b><br /><br /> </td> <td style="width:209.0pt;border-top:none;border-left: none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt; background:white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> ₹11532<br /><br /> </td> </tr> <tr> <td style="width:132.0pt;border:solid windowtext 1.0pt; border-top:none;mso-border-left-alt:solid windowtext .5pt;mso-border-bottom-alt: solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt;background: white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> <b>ITC</b><br /><br /> </td> <td style="width:209.0pt;border-top:none;border-left: none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt; background:white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> ₹10935<br /><br /> </td> </tr> </tbody></table><strong>Source: Company, Edelweiss research<br /><br /></strong>The merger of HUL-GSK also involves HUL distributing GSK’s over-the-counter (OTC) brands like ENO, Crocin and Sensodyne for five years, which will further strengthen HUL’s position in the chemist channel.<br /><br /><strong>SEE ALSO: <a href="https://www.businessinsider.in/business/ecommerce/news/you-wont-be-able-to-order-non-essential-items-on-amazon-flipkart-and-others-till-lockdown-is-lifted/articleshow/75230373.cms">You won’t be able to order non-essential items on Amazon, Flipkart and others till lockdown is lifted</a><br /></strong><a href="https://www.businessinsider.in/policy/economy/news/india-amends-fdi-policy-to-prevent-opportunistic-acquisitions-of-indian-companies-by-the-chinese/articleshow/75222108.cms"><strong>India amends FDI policy to prevent ‘opportunistic acquisitions’ of Indian companies⁠ by the Chinese</strong></a><br />

The $452 million Unilever-GSK deal had to be changed because India’s love for Horlicks is worth billions

<ul><li><keyword id="6365619" type="COMPANY" weightage="20" keywordseo="hindustan-unilever">Hindustan Unilever</keyword>’s fourth-quarter earnings showed a 1% fall in profit after tax, a 9% fall in domestic sales, and a 7% fall in volume growth.</li><li>The share price of India’s largest fast-moving consumer goods major ended 1.2% lower on a day that the Sensex rallied over a 1,000 points. </li><li>With the supply chain impacted due to the coronavirus lockdown across the country, overall revenue has been affected on expected lines</li></ul>Hindustan Unilever’s fourth-quarter earnings showed a 1% fall in profit after tax, a 9% fall in domestic sales, and a 7% fall in volume growth. The share price of India’s largest fast-moving consumer goods major ended 1.2% lower on a day that the Sensex rallied over a 1,000 points. <br /><br />  <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-chart" data-src="visualisation/2173668" data-url="https://flo.uri.sh/visualisation/2173668/embed"><script src="https://public.flourish.studio/resources/embed.js"></script></div>]]></cdata></div><br />  <div type="Article" hostid="261" msid="75472198" title="Tech Mahindra’s net profits see a massive 32% drop even as its digital business is treading water amidst the COVID-19 crisis" mstype="2" mssubtype="0"></div><br /><strong>COVID-19 lockdown hits <keyword id="44863" type="CITY" weightage="20" keywordseo="HUL">HUL</keyword> where it hurts the most<br /></strong><br />With the supply chain impacted due to the coronavirus lockdown across the country, overall revenue has been affected on expected lines. “Demand patterns are changing, and we are likely to see an upswing in categories like health, hygiene and nutrition. In the near term, we are also likely to see some adverse impact on discretionary categories and out of home channel,” the company statement said. <br /><br />Earlier on April 23, <a href="https://economictimes.indiatimes.com/markets/stocks/earnings/unilever-withdraws-outlook-for-2020-will-pay-interim-dividend/articleshow/75317560.cms">Unilever</a> withdrew its full year forecast and had said that it cannot assess the impact of coronavirus on its business. <br /><br />Many of HUL products come under essentials along with LifeBuoy sanitizers and hand wash in its brands, however that wasn’t expected to help the company. “High stocking up will not compensate for the soft demand for a long period. HUL has ramped up supply for soaps and sanitizers for a while now since the outbreak in China. People are, however, hoarding these products to a very large extent and hence it is difficult to meet demand,” an Edelweiss estimate had said earlier.<br /><br /><strong>The biggest food company in India </strong><br /><br />With its merger with Glaxosmithkline Consumer Healthcare (GSK), Hindustan Unilever became the biggest food company in India. According to reports, GSK is also planning to sell 5.7% stake in HUL worth $3.7 billion. Through the merger HUL acquired Horlicks from GSK for ₹30.5 billion. <br /><br />However, after the deal was sealed, GSK has decided to dump the $3.9 billion worth HUL shares that it received as part of the deal. The expected flooding of shares in the market from GSK also took the HUL stock down in trade three days in a row, ahead of today’s earnings report.<br /><br />See Also:<br /><a href="https://www.businessinsider.in/policy/economy/news/rbi-extends-amended-money-market-trading-hours-from-10-am-to-2-pm-till-further-notice/articleshow/75468609.cms">India's blue-chip indices see a dizzying rally this week thanks to a series of good news⁠— these are the top gainers and what pumped them up</a><br /><a href="https://www.businessinsider.in/stock-market/news/here-is-a-list-of-top-25-stocks-that-qualify-for-ten-baggers-according-to-ambit/articleshow/75468072.cms">Here is a list of top 25 stocks that qualify for ‘Ten Baggers’, according to Ambit</a>

HUL fourth-quarter volume growth down 7%, profit falls 1%, India sales slide 9% ⁠— as COVID-19 strikes India’s largest consumer firm

The Indian economy just clocked its eighth straight quarter of slowing GDP (gross domestic product) growth. Consumer confidence had slipped further after hitting a six-year low late last year. All this had to hurt earnings of companies— Page Industries, Colgate, Dabur, <keyword id="106317" type="CITY" weightage="20" keywordseo="Asian-Paints">Asian Paints</keyword> to name a few— that depend on people spending money on their products.<br /><br />In the last one month, at least ten companies have seen cuts in earnings estimates anywhere between a slight tweak to as much as 10%. <br /><br /><table style="width: 389pt;"> <colgroup></colgroup><col /> <col /> <tbody><tr> <td class="xl63" style="height:15.0pt;width:132pt">Company</td> <td class="xl64" style="border-left-width: initial; border-left-style: none; width: 257pt;">Cut in earnings estimate in last one month</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Page Industries</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-10.60%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Marico</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-2.40%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Emami</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-2.30%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Titan</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-1.50%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Berger Paints</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-1.40%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Jubilant Foodworks</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-1.40%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Godjrej Consumer</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-1.30%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Asian Paints</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-1.30%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">HUL</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-0.30%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Dabur</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-0.20%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Britannia</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">0.10%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">GSK Consumer</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">0.30%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Nestle</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">0.40%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">ITC</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">0.70%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Pidilite</td> <td class="xl67" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">3%</td> </tr> <tr> <td class="xl68" style="height: 15.75pt; border-top-width: initial; border-top-style: none;">Colgate</td> <td class="xl69" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">3.70%</td> </tr></tbody></table><em>Source: Axis Capital</em><br /><br /><strong>The following is the commentary from analysts on each of the stock that has seen a cut in the consensus earnings estimate.<br /></strong><br /><strong>Page Industries:</strong> “The path to earnings recovery, particularly after the unprecedented margin dip in 3QFY20, is unclear. Category slowdown, weak channel liquidity and competitive tailwinds present significant near-term challenges. Our channel checks across various cities in the country also do not indicate green-shoots of recovery,” Motilal Oswal said in its report on Feb 13 while cutting the target price for the stock to ₹22,250 a piece for the next one year .<br />
  
  
  
  
  
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<br /><strong>Marico: </strong>From a slowdown in rural consumption and drying of cash circulation among dealers and distributors who are looking to cut down on inventory are not the only problems for the company. As economic growth got slower and people got more penny-wise, some of the company’s customers are moving back to unbranded products that are cheaper and can be bought in small quantities as per need. <br />
  
  
  
  
  
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<br />This has led to a cloud of uncertainty for Marico, which has lost over 15% in share value since early December. “The near term pain envisaged, when we released our initiation note on Dec 2, has actually extended by a couple of quarters, with revival now expected from the second half of the next financial year ending March 2021,” according to Nirmal Bang Institutional Equities, which still has a ‘buy’ rating on the stock and a target price of ₹400 that implies a nearly 33% jump from the current value.<br /><br />Aside from being oversold, the only silver lining for Marico is the cheaper price of key inputs.<br /><br /><strong>Emami: </strong>Like Marico, Emami also benefits from cheaper commodities but that is no good when data shows that domestic volume growth contracted for the first time in recent memory. But the fears have already played out and the stock has lost over 35% of its value in the last one year. “Valuations are at about 60% discount to peer average,” cited a Motilal Oswal report while recommending that investors buy Emami expecting a 19% jump in price in the next one year. <br /><br />
  
  
  
  
  
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<br /><strong>Titan:</strong> ‘Growth’ was never under question for Tanishq; ‘Growth + Margins’ was, said the opening lines of a report from ICICI Securities recently. Tanishq is a jewellery chain operated by Titan that also sells watches and eyewear.<br /><br />The company’s jewellery business surprised analysts by growing 11% and making as much profit margin as a year ago, if not better. But watches and eyewear, two other important segments, showed signs of weakness. <br /><br />Over 85% of the company’s revenue comes from jewellery and the recent rise in gold prices may affect buyers’ sentiment. <br /><br />
  
  
  
  
  
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<br /><strong>Berger Paints:</strong> Berger’s revenue growth decelerated further and earnings were 7% below estimates, Kotak Institutional Equities said after the latest quarterly report from the company. One of the biggest stumbling blocks for the company is the sharp slowdown in car sales and production. The fall in crude oil prices as the coronavirus spread is good news but not good enough. Kotak rated the stock as ‘sell’, adding that the fair value for the stock would be ₹430, nearly 25% lower than the current level.<br /><br />
  
  
  
  
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 <br /><strong>Jubilant Foodworks: </strong>The sole franchise holder for Domino's Pizza and Dunkin Donuts in India is faced with a double whammy. Both vegetables and milk are getting expensive shrinking margins.<br /><br />In early 2018, Jubilant’s same store sales ⁠— sales from stores open for at least a year ⁠— were growing well above 20%, today it is down single digits. The same-store sales in the latest third quarter 5.9% and that was the highest this financial year. The ongoing quarter, Jan to March 2020, may see a hit from a rise in violence in Delhi that has led to fewer people stepping out to eat or ordering in for that matter.<br /><br />PhilipCapital’s target price for the stock is ₹1,750 not very far where it is right now.<br /><br />
  
  
  
  
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<br /><br /><strong>Godrej Consumer: </strong>The same PhilipCapital gave a ‘high-conviction sell’ rating for this company that is a king of toiletries in India⁠— from soaps and shampoos to hair colour. <br /><br />What’s helping Godrej is the fact that 45% of business is overseas and in countries that have shown better economic performance. Without the 11% growth (in constant currency terms) in overseas revenue, the total topline growth would have been much worse than the 2.1% clocked in the latest third quarter.<br /><br />
  
  
  
  
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<br /><br />However, a report from Credit Suisse has projected a turnaround in the home insecticides sales and therefore increased the target price to ₹680 a piece a year from now, a 21% rise from Friday’s closing price.<br /><br /><strong>Asian Paints:</strong> As a paint maker, Asian Paints has challenges similar to those of Berger Paints mentioned above. But Asian Paints is a leader in the market and has been focussed on gaining market share by offering competitive prices to beat the slowdown.<br /><br />Asian Paints has expanded its market share (value) from 44% in the financial year ending March 2008 to 53.6% at the end of March 2019. “With the entry of new players, Asian Paints has increased its aggression in trade and is focusing on gaining market shares even in low priced paints / putty &amp; primers,” an ICICI Securities report said citing the risk of action from the country’s monopoly regulator. <br /><br />
  
  
  
  
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<br /><strong>HUL: </strong>Hindustan Unilever, which sells every soaps and shampoos to food items of daily use at home, has been improving its profit margin nine years in a row. The current slowdown has not changed that but the volume growth is abysmally low at 5% for the last three quarters compared to 12% in the first quarter of financial year 2018.<br /><br />
  
  
  
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<br /><br />There is no recovery in sight for at least another two quarters. While rising prices of key inputs are either forcing price hikes or narrower margins, people’s spending power has been eroded by rising inflation and now, rising cost of keeping a mobile phone. <br /><br />There may be some upside after the company’s decision to set up a 100% subsidiary to enjoy a lower tax rate of 15%. However, the street is waiting to see how this plays out and what benefits accrue. ICICI Securities kept its estimates unchanged citing the risk of further slowdown in consumption and irrational competition.<br /><br /><strong>Dabur: </strong>Except for Dabur Amla, Dabur India’s journey so far in the Indian Hair oil sector has been lackluster. Its other key offerings like Dabur Anmol and Dabur Almond has not been able to make a mark till now. Vatika, a key offering positioned in the coconut oil segment has not worked well in India, while has gained good success in international markets, said a report from SBI Caps recently.<br /><br />
  
  
  
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<br />The growth in the modern trade has gradually decelerated as the slowdown catches up and the company is trying to beat that with new product launches. It is expected that the company owned by the Burman family, so far known for its health supplement Chyawanprash and hair oil, may launch fruit-based cold drinks this summer to take on the like of Coke, Pepsi and Parle.<br /><br />The consensus earnings estimate is only 0.2% down for Dabur in the last one month but in the last one year it is down by 8.4%.<br /><br /><strong>SEE ALSO:<br /></strong><a href="https://www.businessinsider.in/business/corporates/news/profit-margin-on-jockey-and-speedo-shrinks-shows-page-industries-q3-earnings/articleshow/74119148.cms" data-type="tilCustomLink" target="_blank">Biting slowdown is squeezing Page Industries' profit margin on Jockey and Speedo</a><br /><br /><a href="https://www.businessinsider.in/stock-market/markets/news/coronavirus-impact-and-other-reasons-why-stock-market-experts-say-dont-buy-shares-now/articleshow/74059150.cms" data-type="tilCustomLink" target="_blank">Coronavirus and beyond— reasons why this is not ideal time to buy stocks in India, according to experts, money managers, and researchers</a><br /><br /><a href="https://www.businessinsider.in/business/corporates/news/for-lic-ipo-to-succeed-the-life-insurance-giant-has-to-dump-a-lot-of-sick-stocks/articleshow/73889676.cms" data-type="tilCustomLink" target="_blank">For LIC IPO to succeed, the life insurance giant has to dump a lot of sick stocks</a><br /><br />

You Searched For "hul gsk news" and got 4 results

Horlicks helps HUL clock a profit – but shareholders want more

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The $452 million Unilever-GSK deal had to be changed because India’s love for Horlicks is worth billions

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HUL fourth-quarter volume growth down 7%, profit falls 1%, India sales slide 9% ⁠— as COVID-19 strikes India’s largest consumer firm

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Inside India’s consumption slump⁠— stories from Godrej Consumer to Page Industries to Emami and many more

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