Exit HUL, says VK Sharma

VK Sharma of Anagram Stock Broking is of the view that one can exit HUL.

Sharma told CNBC-TV18, "HUL usually does well in a bear market, it outperforms the markets and of the five bear markets we have seen, it has outperformed in the four, so it’s good for this stock to be in a bear market. But if you are looking for absolute returns I don’t think this is the stock, if you were to look at the last ten years CAGR, the stock hasn’t given you more than 4% returns per annum, so that is not the rate at which you are taking risk in stocks. So my advice at this point of time when the stock is doing well, you need to exit and even if you are having a longer term horizon like 2-3 years, probably buying Tata Steel or any other commodity stock like Hindustan Zinc, one year down the line even if you sit on the cash will give you more returns three years down the line than HUL per se."

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.

Source: Moneycontrol