MUMBAI: Shares of HSIL could rally 20% in the next two-three months as the company decides to unlock value by demerging its consumer products, distribution and marketing business into a new entity Somany Home Innovation (SHIL). Typically, consumer products businesses are traded at a higher PE than manufacturing businesses, according to analysts..HSIL will retain the manufacturing of all the building and consumer products in addition to manufacturing and sales of packaging products. The HSIL stock has rallied 74% so far this year to close at ₹496 on Wednesday.Also, the branding, marketing, sales, distribution of building products will be transferred to a new company called Brilloca which will be a wholly-owned step-down subsidiary of SHIL. “We expect growth in sanitaryware to accelerate, led by overall improvement in the economy and capacity expansion; glass segment is likely to see improved outlook in the medium term. However, we are awaiting clarity on the balance sheet charges for post-demerger

Source: Economic Times November 24, 2017 03:22 UTC