Hindustan Unilever Ltd. share price target

However, over the medium term we believe, HUVR has the right growth matrix like 1) broad based portfolio straddling across price-value matrix, 2) focus on cost savings 3) GSK-CH integration led tailwinds, 4) execution prowess vs peers and 5) strong data analytics capabilities. We maintain BUY rating

Large parts of business continue to gain market shares and penetration 25.0% to 24.7%, leading to 10% rise in operating profit to Rs 3226 crore. Other income fell 43% to Rs 53 crore. PBIDT rose 9% to Rs 3279 crore. Provision for interest fell 10% to Rs 28 crore. PBDT rose 9% to Rs 3251 crore. Provision for depreciation rose 6% to Rs 281 crore. Profit before tax grew 9% to Rs 2970.00 crore. Share of profit/loss were nil in both the periods. Extraordinary items were an expense of Rs 5 crore, a fall of 94%. Effective tax rate was 26.4% compared to 25.2%. Minority interest was Rs 4 crore compared to nil in corresponding previous period. Profit from discontinued business was Rs 3 crore against nil in corresponding previous...

Hindustan Unilever (HUVR) 2QFY22 result was below our estimates. Volume growth at 4% YoY (on a base of 1%) was soft. Inflationary headwinds continue to be stronger than expected. Price hikes to the tune of 5% in 1QFY22 followed by 7% in 2QFY22 are steep. However, strong recovery in out-of-home and discretionary segments are encouraging. Integration with GSK reached 80% level (vs 50% in 1QFY22). HUVR continues to gain market share in >75% of the business. Inflation in palm oil, crude oil, polyethylene and ocean freight continues to rise. Management expects cost pressures to stay for at least 1-2 quarter. Accordingly, we have marginally trimmed our estimates for FY22-23E. Also,...

GTM integration for nutrition business at 85% mark We are cutting FY22/23 EPS by 1.9%/0.2% on the back of 1) Inflationary environment impacting GRMs and 2) Slowdown witnessed in rural demand neutralized partly by uptick in Discretionary segments. Despite the near term inflation challenges, we remain positive on the structural story given that 1)...

While commodity costs remain elevated, we believe mix improvement would lead to continued sequential margin improvement. HUVR's share of the Discretionary and Out-of-Home (OOH) portfolios (~15% of sales) is higher v/s peers. Moreover, these businesses have much higher margins than the rest of the portfolio. As a result, the earnings growth outlook from 2HFY22 is incrementally better v/s peers....

We expect HUVR to witness MoM improvement in demand since June-21 Change in Estimates | Target | Reco aided by resilient Rural demand and improving Urban demand. Inflation in Palmoil and Crude is likely to pressurize margins, however the intensity will...

We marginally revise our FY23E/24E and maintain BUY with a revised TP of Rs. 3,100 (earlier Rs. 2,670) as we raise our target PE to 56x FY24E EPS (earlier 50x FY24E EPS).

We attended HUVR's analyst meet where the management sounded positive on the future growth potential and achieving competitive growth backed by Change in Estimates | Target | Reco 1) category leading position in ~80% of its portfolio 2) market development in...

The management shared details on the augmentation of its analytics and R&D; strengths, which were already far superior v/s peers. As highlighted in our Annual Report note, there have been a host of initiatives in the past year focusing on the burgeoning E-Commerce market, which now contributes 89% to HUVR's sales. The company's portfolio is already wellplaced, with its E-Commerce market share higher than its Modern Trade (MT)...

While our long-term outlook remains positive, we expect margins to remain under pressure in the near-term, unless the company manages further price hikes. The stock is trading at expensive valuations. Given limited upside to current price level, we downgrade our rating to HOLD with a revised TP of Rs. 2,540 based on 54x FY23E adj. EPS. Volume growth aids topline on YoY basis Company's Q1FY22 standalone revenue came in at Rs. 11,915cr (+12.8% YoY, -1.8% QoQ) aided by volume growth on improved consumer demand, despite disruptions...