New Research Reports

With an 18% upside potential from the CMP, we maintain our BUY rating on the stock

Hindustan Unilever’s (HUVR) 2QFY25 revenue was up 2% at INR157.3b (in line), with underlying growth of 3%. Volume growth of 3% was below our estimate of 5% (4% in 1QFY25).

HUL’s Q2FY2025 performance was slight miss on expectations with revenues growing by 1.5% y-o-y while PAT declined by ~4% y-o-y; underlying volumes grew by 3%, lagging street expectations of 4-5%.

Takeaways: (1) Varun (VBL) has aggressively ramped up production (operating at maximum utilisation) at its recently commissioned DRC facility, due to strong demand. It plans to scale up production capacity at DRC in a phased manner.

Quarterly Update Q3CY24

Tata Consumer Products (TATACONS) reported 8% YoY EBIT growth in 2QFY25 on the back of a strong performance in its international branded beverage segment (EBIT up 74% YoY) and non-branded business (EBIT up 86% YoY).

Compared to consensus, sales came in 3% lower while EBITDA was in line

Tata Consumer Product Ltd’s (TCPL’s) Q2FY2025 performance was broadly in line with expectations with revenues growing by ~13% y-o-y (organic growth at 5%) and OPM rising ~50 bps y-o-y to 14.9%.

Nestle’s Q2FY25 revenue growth was disappointing; it further de-accelerated to 1% YoY (vs 4% in Q1FY25) due to subdued consumer demand.

We remain optimistic about the company's long-term prospects. With an 11% upside potential from the CMP, we maintain our BUY rating on the stock.