Hindustan Lever recovered from its early low of Rs 162.70 on Thursday on a technical correction and some value buying.

By 10:50 IST, the scrip of the FMCG behemoth rose 1.99% to Rs 166.40. Over 137,000 Hindustan Lever shares were traded on BSE by then.

A technical correction after a sustained fall is being credited as the reason for HLL finding its feet back again. Investors are now finding value in the scrip after major losses earlier. Another reason for the buying is deemed to be the selling phase by FIIs being near finished on the counter. FIIs have reportedly been offloading in HLL following a shift in portfolio.

In the nine sessions between 23 January and 5 February 2003, HLL lost 10% to Rs 163.15 from Rs 181.15.

As per market buzz, brokerage firm Salomon Smith Barney has recently offloaded on behalf of an unknown foreign institutional investor. Life Insurance Corporation of India is believed to have bought the stock over the last few sessions.

Yesterday, HLL announced that it plans to foray into full-fledged herbal healthcare by the middle of this year. The company has decided to unveil a couple of over-the-counter Ayurvedic healthcare products like cough syrup, pain balms on a nationwide scale

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). 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 to Rs 542.84 crore (Rs 54.28 billion).

Going by the latest results, analysts feel the company will 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.

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