(Bloomberg) --
Analysts are starting to sour on Hindustan Unilever Ltd. as weak rural demand clouds the outlook for India's largest consumer staples company.
The firm's third-quarter net income missed expectations, triggering several downgrades on the stock over the past week. At least five brokerages, including CLSA and HSBC, have cut ratings on the stock to sell, notching up bearish calls on the company by the most since 2018.
READ: Hindustan Unilever Drops Most in 6 Months After 3Q: Street Wrap
Subdued sales recovery in the rural market and negative pricing growth remain as headwinds for Hindustan Unilever, Morgan Stanley analysts said in a note dated Jan. 19. The company reported 149 billion rupees ($1.8 billion) in revenue for the December quarter, slightly lower than a year ago.
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