Hindustan Unilever Ltd. share price target

marketing and innovations. HUL seems well placed to gain from 1) increased consumer focus on hygiene increasing demand for personal wash, Detergents and Hygiene 2) Synergy benefits in GSK as the current...

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...

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,...

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.

We recommend a BUY on HINDUSTAN UNILEVER with a Target Price of Rs 2,386 an upside of 6% from CMP of Rs. 2,253 and Stop Loss Rs 2,185.

Annual Report Analysis

HUVRs volume and earnings growth in recent years has been far superior to that of its Consumer peers; the company is likely to continue to do well over the medium to long term as well. However, as the laggard Soaps segment could now see higher growth in terms of both volume and premiumization (hand washes, sanitizers, and body washes are at a much higher price index than soaps), the companys overall earnings growth Mr Mehta believes the Detergents and Home Care segments are also bound to do well amid the pandemic as well as later, albeit not at as accentuated a pace as Rising demand has been witnessed for immunity-building products and in-home consumption is also growing.

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company with a heritage of over 80 years in India. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall's and Pureit. HUL is a...

The GSK Group sold a 5.7% stake (13.37 crore shares) in Hindustan Unilever Limited (HUL) through multiple block deals in the open market at an average price of Rs. 1,902 per share. The stock has corrected by ~16% from its high and its currently trading at 48.1x its FY2022E earnings. GSK Group selling the stake has reduced supply overhang on the stock and the current valuations factors in a sluggish Q4 due to supply disruption caused by the nationwide lockdown in the fag-end of the quarter. We expect supply disruption to sustain in the coming months till the time the nation recovers from the pandemic situation. Thus, H1FY2021 would see HUL's sales significantly...

The GSK Group sold a 5.7% stake (13.37 crore shares) in Hindustan Unilever Limited (HUL) through multiple block deals in the open market at an average price of Rs. 1,902 per share. The stock has corrected by ~16% from its high and its currently trading at 48.1x its FY2022E earnings. GSK Group selling the stake has reduced supply overhang on the stock and the current valuations factors in a sluggish Q4 due to supply disruption caused by the nationwide lockdown in the fag-end of the quarter. We expect supply disruption to sustain in the coming months till the time the nation recovers from the pandemic situation. Thus, H1FY2021 would see HUL's sales significantly...