Kotak downgrades HUL on declining rupee, packaging norms

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Kotak Institutional Securities has downgraded Hindustan Unilever to ‘reduce’ from ‘add’.

The brokerage said it had downgrades the stock on a likely deceleration in 2012 volume growth, negative impact of new standard packaging regulations, depreciation of the rupee raising input costs and the recent outperformance of the stock.

“In the balance, we see downside risks to HUL’s business emerging,” said Kotak in a note.

At 1:17 pm, the stock was trading down 0.22 percent at Rs 391.75 on BSE.

Reuters