In case of Hindustan Unilever, Credit Suisse expects the stock to hit a target of Rs 1,770 per share, implying 7 percent potential upside.
Global investment firm Credit Suisse downgraded Britannia Industries and Hindustan Unilever to Neutral, which pushed both stocks down by 2.65 percent and 2 percent intraday respectively on Wednesday.
The brokerage house said Britannia valuations indicated little room for upside, though it raised target price to Rs 6,900 from Rs 6,000 per share earlier.
It further said Britannia, the country's largest biscuit maker, is largely a single-category company and its cash conversion is poor versus HUL as well as Nestle India. "We like the business from a medium-term view."
In case of Hindustan Unilever, Credit Suisse expects the stock to hit a target of Rs 1,770 per share, implying 7 percent potential upside.
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It feels the return of normal competitive activity will cap upside and margin expansion in FY20/FY21 may be capped hereon. "We cut FY20/FY21 earnings estimates by 2-4 percent. For FY19, margin should expand as the base in Q2/Q3 is favourable."
At 11:26 hours IST, Britannia stock price was quoting at Rs 6,195.00, down Rs 148.35, or 2.34 percent and Hindustan Unilever was down 1.54 percent at Rs 1,626.05 on the BSE.
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