The 54 reports from 14 analysts offering long term price targets
for Hindustan Unilever Ltd. have an average target of 2041.08. The consensus estimate
represents an upside of 0.72%
from the last price of 2026.50.
We maintain HOLD rating on the stock with a revised target price of Rs.2,210 based on FY21 PE of 55x. Revenue growth in-line with expectations The company reported topline growth of 6.7% for Q2FY20, aided by strong growth in Home Care segment (Rs. 3,371cr./+9.5% YoY), followed by Food & Refreshment (Rs. 1,847cr./+8.4% YoY) and Beauty and Personal Care (Rs. 4,543cr./+5.3% YoY). Despite unfavorable macroeconomic conditions and slow urban and rural demand, companys innovation driven strategy facilitated strong performance and maintained its position...
Despite challenging scenario, HUVR delivered a strong Q2FY20 with a beat on all counts versus our estimates. UVG was healthy at 5% (ahead of our 4% estimates) and growth as broad based across segments.
Most consumer categories have seen uptick in demand in the ongoing festive season. We believe volume growth trajectory has bottomed out. However, we don't expect HUL's volume growth to accelerate meaningfully (high single digit territory) in 2HFY20 given its higher base on a 3 year CAGR basis (9% vs. 6% in 1HFY20). GSK's acquisition is running behind schedule and is expected to be integrated by Feb-20 (vs. Dec-19 earlier). We maintain our NEUTRAL rating as we don't see any near-term triggers for re-rating in the stock. HULs 2QFY20 show was respectable amidst concerns of slowdown worsening. Co maintains a cautious outlook and hopes for a recovery in rural demand. We maintain our estimates and NEUTRAL rating. We value HUL at 45x on Sep-21 EPS with TP of Rs 2,017.
Premiumisation trend to help drive higher revenues/margins Driven by premiumisation trend across segments, HUL's revenue has grown 9% in the last 10 years. On the back of premiumisation, the FMCG major has gained market share in most of its key categories like laundry, personal wash, hair care and beverages. Over the years, HUL has launched premium products across its key categories. Its most successful premium products (Surf, Dove, Lipton) have been growing significantly, ahead of market growth. As a result, HUL's operating margins has seen consistent expansion...
We cut HUVR's FY20 and FY21 EPS by 1.1% and 2.6% despite 5% volume Change in Estimates | Target | Reco despite good monsoons 2) limited scope to increase margins from current...
14 October 2019 EBITDA rose 21% YoY to INR24.4b (16% on a comparable basis after adjusting the company has started utilizing the corporate tax benefits from 2QFY20 itself, leading to a sharp PAT beat. Domestic consumer business sales were up 7% stood at 54.5%, while the EBITDA margin expanded 290bp YoY to 24.8% up 210bp YoY adjusted for Ind-AS 116 and 50bp adjusted for the impact of government grants. Notably, HUVR delivered a margin improvement despite a 20bp YoY/70bp QoQ increase in ad spend. Revenue was up 9.4% YoY at Home Care (34% of sales) and 5.3% YoY at Personal Care. Food & Refreshments (19% of sales) sales were up 8.4% YoY. Margin expanded 150bp YoY in Home Care and 260bp YoY in Personal Care, but shrank 140bp YoY in F&R.; Rural growth was 0.5x urban for the sector in 2QFY20.
Hindustan Unilever Limited's (HUL) Q2FY2020 performance was largely in-line with our expectations. Revenue grew by 6.7% and adjusted PAT grew by ~21.5% (operating profit margin [OPM] expanded by 191 BPS on a comparable basis to 23.8%). Strong growth in PAT was mainly on account of reduction in corporate tax rate, while profit before tax grew by ~8% during the quarter. Volume growth of the domestic consumer business stood at 5% on a q-o-q basis, despite moderation in rural demand in July and August 2019....
Over the past few years, Axis Direct Muhurat Picks have outperformed the Benchmark indices. Despite the volatility involved in Samvat 2075 (Muhurat Picks 2018)our recommended portfolio has outperformed the benchmark by margin.
We retain our HOLD rating on the stock, with a revised target price of Rs 1,790, based on 48x FY21E adj. EPS. Topline boosted by volume growth HUL reported 6.6% YoY growth in topline to Rs. 10,114cr, with product sales revenue contributing Rs. 9,984cr (+6.7% YoY). The revenue growth was led by improvements in the rural and urban consumer business (+7%) with underlying volume growth of 5%. By segment, revenue growth was led by home care division (+10.1% YoY to Rs. 3,465cr; volume driven growth) followed by food & refreshment business (+9.2% to...
Reported Profit after Tax (after accounting for exceptional items) grew by 14.8% Y-o-Y to `1755 crs led by improvement in EBIDTA and other income in Q1FY20. PAT Margin stood at 17.4% as opposed to 16.1% in the same quarter in the previous year. Exceptional Items includes profit from the sale of surplus properties, provision towards...
Hindustan Uniliver Limited (HUL) Q1FY20 profit rises 15% YoY to Rs 1,755 crore; in line with Street estimates. Revenue of Hindustan Unilever Limited (HUL) grew by 7% y-o-y at Rs. 10114 crore in June 19 quarter. Volume growth of 5% can be attributed to strong traction to new launches. OPM improved by 250 bps to 26.2% due to better leverage, lower ad spends and other cost initiatives. 100 bps improvements is due to Ind AS 116 on leases. Operating profit grew by 18% y-o-y to Rs. 2647 crore. Interest cost was up by 243% to Rs 24 crore and depreciation was up by 69% to Rs 214 crore. Thus PBT...
HUVR delivered a modest operational beat in Q1FY20 (5% UVG, 13% EBITDA growth) with a strong EBITDA Margin expansion of 244bps. This more than modest Op. Margin beat was led by tight cost control, leverage in A&SP; due to lower competitive intensity and RM tailwinds.
In 2017, our upgrade on HUL was led by the rationale that the company will outperform its peers during a challenging environment. We are entering another patch of uncertainty (opportunity to outperform) but this time risk reward is not favorable. We maintain our NEUTRAL rating, which may change with (a) Further time correction in the stock, (b) Recovery in rural demand and (c) Successful integration of GSK portfolio (ability to surprise on margin expansion). HULs 1QFY20 performance reflects the underlying stress in consumption. With a turn in macros, HUL will be the first to bounce back given the inherent strength in its business. We maintain our NEUTRAL rating since we downgraded in Jul-18 (stock is flat since then). We value HUL at 45x on Jun-21 EPS with TP of Rs 1,804.
Hindustan Unilever's (HUVR) reported numbers for 1QFY20 were slightly below our expectations with top-line growth being the lowest in seven quarters. Rural market continued to witness deceleration in growth and rural growth rates are now almost equal to urban. However, other than Skin Cleansing products, growth rates were healthy across categories with Homecare delivering double digit growth, which is the most encouraging aspect this quarter. The key takeaways from the earnings were: 1) Although overall growth rates witnessed a decline, it was still largely led by volume and importantly it was broad based with the exception of Personal Wash products 2) Operating margin was substantially...
Despite higher penetration levels, the detergent segment continued to witness strong growth mainly on account of premiumisation trend. The upgradation trend from Wheel' to Rin' in central India and powder to liquids in urban India has been driving growth in the home care segment. The company re-launched Rin' nationally during the quarter and launched Sunlight Liquid' in certain geographies. The company continued to witness strong in growth in south India markets. In purifiers, HUL has changed its strategy to concentrate on the premium segment by launching purifier with copper charge technology in FY19....
We upgrade HUVR from HOLD to Accumulate given that HUVR should emerge Change in Estimates | Target | Reco as one of the biggest gainers from Govt's social push aimed at bottom end of...
Hindustan Unilever Limited's (HUL) Q1FY2020 performance was largely in-line with our expectation. Revenue grew by ~7% and adjusted PAT grew by ~11%. Operating profit margin (OPM) expanded by 150 BPS on a comparable basis to 26.2%. Volume growth of the domestic consumer business moderated to 5% in Q1FY2019 from 7% in Q4FY2019 mainly on account of consumption slowdown in rural India. However, the same was decent in view of industry volume growth of ~6% during the quarter. We expect the volume growth...
Satisfactory volume growth on high base and consumption slowdown HUL's volume grew +5% YoY and operational results were in line with our estimate. We are positive about this as (1) the base was unfavorable (+12%) and (2) the industry, across categories, is experiencing a slowdown. We expect the volume growth to remain in mid-single digit, due to an unfavorable base in next few quarters. Even a 6%+ volume growth is a positive, given HUL's size. In addition, the GM and EBITDA margin rise on an unfavourable base (highest Q1 EBITDAM in 10 years+), indicates that...
EBITDA of INR26.5b was up 17.6% YoY (13% on comparable basis after adjusting for Ind- AS 116; v/s est. of 8.7% to INR24.5b), while PAT (bei) was up 11.7% YoY to INR17.5b (v/s est. Domestic consumer business sales were up 7% YoY led by underlying volume growth of 5% YoY (v/s est. Company took a 4-6% price reduction in in July given that commodity costs are softening further; this is expected to boost demand, Barring home care and certain pockets in modern trade, competitive intensity has declined in most categories, which is one of the factors resulting in lower industry-wide ad spends, and launch momentum remains strong.
