Hindustan Unilever Ltd. share price target

16 September 2020 Detergents, Tea, Oral Care, etc. Of the remaining 20% portfolio, 15% declined by 45% while the rest 5% declined by 69% during the quarter. Skin Care the largest segment of the remaining 20% portfolio performed poorly in 1QFY21, but has started to recover consistently since June (although it is yet to turn positive YoY). With the Ice-Cream business being a washout in 1QFY21, it contributed significantly to business decline in the quarter. However, the Ice-Cream business is much less salient in the base quarter of 2QFY21 (2QFY20) v/s 1QFY21. Therefore, 2QFY21 is not expected to be as drastically impacted by the Ice-Cream business as 1QFY21. The GSK business was affected by temporary plant shutdowns due to COVID- led disruption and some labor issues. The temporary shutdown at HUVRs Haridwar plant due to COVID issues did not affect operations owing to adequate inventory buffers.

Company rebuilt supply chain, launched 50 products; rationalised of SKUs to supply relevant products and enhanced capacity of sanitisers (by 120x) and handwash (by 6x) to capture growing demand. HUL focuses on improving profitability through cost-savings; synergistic...

Amid the pandemic induced global chaos, one thing is at least clear: a few powerful and quality companies are set to gain more clout and HUL is one such name. With key brands in its bucket, solid quarter( Q1FY21) along with...

operations of the company. But with operating profit margin (OPM) contract by 120 bps to 25.1%, the operating profit was down by 1% to Rs 2695 crore. Other income was up by 6% to Rs 154 crore and thus the PBIDT was down by 1% to Rs 2849 crore. After accounting for higher interest cost (up 15% to Rs 31 crore) and higher depreciation (up12% to Rs 257 crore), the PBT was down by 2% to Rs 2561 crore. The EO expense was Rs 119 crore, a swing of RS 126 crore. Thus the PBT after EO was down by 7% to Rs 2442 crore. However with taxation stand lower by...

Q1FY21 standalone revenue rose 4.4% YoY primarily on account of acquisition of GSK-CH and higher sales of foods & refreshment. EBITDA margin shrank 110bps YoY to 25.0% due to negative impact of COVID-19 lockdown costs, partially offset by savings and synergies of...

Demand outlook: On a MoM basis HUL has witnessed recovery in business which in April was at 70% further improving in May and in June the company reported 5% revenue growth on YoY basis including 6% distributor inventory re-stocking. However, whether this demand sustains is too early to call out

HUVR has successfully integrated GSK which reinforces our confidence in long-term growth story led by 1) Increased Market penetration by leveraging HUVR's distribution capabilities (increase in reach by 1.75x initially and then 2.25x), 2) Launch of sachets and pouch packs at aggressive price points (20% discount), 3) Low rural penetration of HFD in South and East India, 4) Savings in media costs and material procurement, 5) Reduction in number of depots and 6) Savings of 3% in Royalty costs as it now owns Horlicks brand. Synergy benefit of 250-300bps has been realized already, the HUL expects 550-700bps...

GSK Consumer addition helped boost operational performance Revenues came in line with our estimate but EBITDA and APAT was a beat. Core business registered 8% volume de-growth - was in line. Core business witnessed 170bps deterioration in margins but merger...

21st July 2020 Hindustan Unilever (HUVR) reported 5% beat on sales and ~10% beat on EBITDA and PAT v/s our estimates. The outlook is gradually improving, with the discretionary part of the portfolio (15% of sales) gradually seeing recovery. In a period of relative normalcy, HUVR (as has been the case in recent years) is likely to report superior earnings growth, which has led us to margins stood at 51.8% (220bp contraction YoY), while EBITDA margins contracted by 110bp YoY to 25%. sales declined 7% YoY in v/s est. The segmental EBIT margin up by 20bp YoY for F&R;, but down by 140bp/150bp for HC/PC. to the P&L; A/c was approved by its Shareholders in 2016. The Board approved the distribution of the Reserves to its Shareholders by means of a Special Dividend of INR9.50/share.

HUL Q1FY2021 performance is not strictly comparable on y-o-y basis due to consolidation of GSK Consumer Healthcare's (GSK Consumer) nutrition business. Overall performance was better than our as well street expectation with revenue and adjusted PAT growth of ~4% and ~8%, respectively. The underlying volume decline for the quarter stood at 8%, which was much lesser than our as well as the street's expectation of 11-13% for the quarter. Around 80% of HUL's domestic business (largely includes essential products) registered a growth of 6%, while discretionary products (skincare,...