Hindustan Unilever Ltd. share price target

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...

Company posted 9.4% declines in Q4FY20 revenue to Rs. 9,011cr, primarily impacted by breakage of supply chain (company plants now running at 70-75% utilization) and subdued demand amidst nationwide lockdown post mid-March. Company witnessed weaker revenue across all three segments with Beauty & Personal Care segment leading the declines (-13.5% YoY) while followed by Food & Refreshments (-6.7%) and Home Care (-4.3%). For FY20, company managed to achieve 1.5% YoY growth in...

Gross margin expanded by ~138 bps to 52.43% Y-o-Y on account of benign commodity prices. EBITDA decreased by 11% Y-o-Y to `2,065 crs in Q4FY20 led by higher ad spends, partly offset by lower staff costs and other expenses. Reported EBITDA margin stood at 22.9% as opposed to 23.9% in Q4FY19, contracted by 40 bps (160bps...

Hindustan Unilever (HUVR IN) performance was subdued and below our and consensus estimates on key headline numbers. Domestic sales growth came in lower at 9.4% YoY (2.5% our estimate) driven by a 7% decline in underlying volume growth (3% our estimate).

Hindustan Unilever Ltd (HUL), India's largest listed consumer packaged goods firm 70 bps contraction in operating profit margin (OPM) to 22.8%, dragged operating profit down by 12% to Rs 2100 crore. With other income standing higher by 134% to Rs 264 crore, the degrowth at PBIDT was restricted to 6% to Rs 2364 crore. After accounting for higher interest cost...

We believe the lockdown would impact Q1FY21 financials in even bigger way given first 20 days of April manufacturing was at extremely low utilisation. Further, we believe even in May, facilities would be working below optimum utilisation with continuance of labour and supply chain problems. On the demand front though, essentials (soaps, sanitisers, floor cleaners, personal hygiene products & tea) would continue to witness higher growth. However, certain discretionary categories (cosmetics, skin products, ice creams, etc.) would see subdued growth in H1FY21E. We...