Hindustan Unilever (HUL) share price dropped more than two per cent in trade on Friday, continuing its losing spree despite the FMCG major announcing a dividend of Rs 22 per share in its fourth-quarter results. The sentiment turned bearish as the management commentary called the operating environment volatile in an uncertain global context, high inflation and looming weather vagaries (read monsoon) that impacts rural demand in India.

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HUL's net profit came in at Rs 2,552 crore, up 10 per cent year-on-year (YoY). The maker of popular detergent brand Surf Excel posted a total sales of Rs 14,638 crore for the quarter, up 11 per cent YoY. During FY 2022-23, total sales came in at Rs 58,154 crore (up 16 per cent). EBITDA increased by 9 per cent, profit after tax before exceptional items grew by 11 per cent while profit after tax rose 13 per cent. 

ALSO READ | HUL Q4 result: Net profit grows 10% YoY to Rs 2,552 crore, firm declares 2200% dividend

Hindustan Unilever Ltd (HUL) on Thursday announced a final dividend of Rs 22 per share for the financial year ended March 2023 — a 2,200 per cent payout given the face value of Re 1 per share. The latest dividend takes the company's total dividends for the year to Rs 39 per share. 

ALSO READ | HUL dividend date 2023: Board announces 2,200% dividend

Brokerages on Hindustan Unilever

Major brokerages have reduced the target price on Hindustan Unilever while maintaining their ratings mostly. Jefferies has cut its target to Rs 2,875 from its previous Rs 3,100 while maintaining a 'buy' rating. Morgan Stanely has maintained an 'equal-weight' rating with a target price cut to Rs 2,408 from Rs 2,497 per share. JP Morgan has also reduced its target to Rs 2,750 from Rs 2,800 while maintaining an 'overweight' stance. Citi has retained 'buy' rating with a target cut to Rs 2,900 from Rs 3,000. HSBC has maintained 'buy' and reduced the target to Rs 2,950 from the previous Rs 3,050.

Meanwhile, HUL stock price opened at Rs 2,454.10 apiece on BSE, down more than half a per cent from its previous close of Rs 2,468.20 and further dropped to the day's low of Rs 2,419.60.