Henkel shares up 5% on report of likely brand sale

MUMBAI: Shares of Henkel India rose early in the trade on Wednesday, on a report in The Economic Times that the company is understood to have put a handful of brands on the block.

But, brokers expect the gains in the Henkel stock, in which activity of institutional investors is minimal, to fizzle out soon. The company is hardly researched by stock analysts and investors and there is lack of clarity about its overall business prospects, according to them.

At 10:15 am, Henkel shares were up 51 paise or 4.7% at Rs 11.43, off early highs of Rs 11.66.

The brands that are believed to be on block include Aramusk, one of the oldest male deodorant soaps, Moloy sandalwood soap, Maha Bhringol hair oil and Tuhina skin care cream on the block.

According to the report, the move is seen as a part of the Rs 500-crore arm of German consumer products company Henkel's strategy to focus on its flagship brands such as Henko, Mr White, Pril, Margo and Fa in a competitive market.