Hindustan Unilever Ltd. share price target

HUL acquired GSK Consumer Healthcare's business in 2019 and integrated Horlicks and Boost brands with the foods & refreshment segment Q3FY22 Results: HUL's numbers were on expected lines....

Maintain BUY with revised TP of Rs. 2,700 (earlier Rs. 2,900) valuing the stock at 56x FY24E EPS. At CMP, risk-reward appears fair from a long-term perspective.

HUVR's 3QFY22 result was broadly in line with our volume, sales, and gross margin estimate, but sharply lower ad spends (down 14.3% YoY and 260bp YoY as a percentage of sales) led to a 8.5-9% beat in our EBITDA, PBT, and adjusted PAT estimates. Since the largest player (also the first to report its result) has cut ad spends, it remains to be seen whether it is a harbinger of a trend that its other Staples peers also adopt to shore up margins in a difficult commodity cost environment. Two factors have held back HUVR's performance over the past few quarters...

(Ocean freight 200%, Crude oil 80%, CPO 60% and Polyethylene 40% YoY). However, we remain positive on the longer term structural story given 1) sustained market share gains 2) strong innovation pipeline 3) scale up in emerging categories (Green Tea, Fabric Conditioner, Liquid Detergents, Liquid Dishwash, Hair conditioner) and 4) distribution gains from strategies like WIMI and SHIKHAR. We expect 10.9% Sales and 13.6% PAT CAGR over FY22-24 and assign a DCF based target price of Rs 2900 (Rs 2930 earlier). We believe risk reward is favorable at 44x FY24 EPS and ~2% dividend yield. BUY....

key categories, uncertain margin outlook over medium term HUL's 20% correction from the peak shows twin impacts of 1) slowdown in rural demand due to lower farmgate income and lower remittances from workers and 2) Impact of Inflation, mix changes and base impact in key categories in urban India, partly neutralized by uptick in discretionary...

Maintain BUY with a TP of Rs 2,565.

HUL managed to maintain healthy margins despite rise in input costs. Upcoming festive season and pickup in demand in the urban areas should drive volumes and aid company performance. We upgrade our...

Two important takeaways from HUL's 2Q results – (1) Focus (now) on ‘profitable volume growth’ after prioritising market share at (some) cost of margins and (2) Improvement in product innovation after a brief lull (in line with our expectations - see What Markets Want #1: HUL). On the industry, some fresh concerns around rural deceleration – HUL, particularly, should be largely fine given recovery in other pockets (urban and discretionary).

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...