Hindustan Unilever Ltd. share price target

We maintain HOLD rating on the stock with a revised target price of Rs.2,210 based on FY21 PE of 55x. Revenue growth in-line with expectations The company reported topline growth of 6.7% for Q2FY20, aided by strong growth in Home Care segment (Rs. 3,371cr./+9.5% YoY), followed by Food & Refreshment (Rs. 1,847cr./+8.4% YoY) and Beauty and Personal Care (Rs. 4,543cr./+5.3% YoY). Despite unfavorable macroeconomic conditions and slow urban and rural demand, companys innovation driven strategy facilitated strong performance and maintained its position...

Despite challenging scenario, HUVR delivered a strong Q2FY20 with a beat on all counts versus our estimates. UVG was healthy at 5% (ahead of our 4% estimates) and growth as broad based across segments.

Most consumer categories have seen uptick in demand in the ongoing festive season. We believe volume growth trajectory has bottomed out. However, we don't expect HUL's volume growth to accelerate meaningfully (high single digit territory) in 2HFY20 given its higher base on a 3 year CAGR basis (9% vs. 6% in 1HFY20). GSK's acquisition is running behind schedule and is expected to be integrated by Feb-20 (vs. Dec-19 earlier). We maintain our NEUTRAL rating as we don't see any near-term triggers for re-rating in the stock. HULs 2QFY20 show was respectable amidst concerns of slowdown worsening. Co maintains a cautious outlook and hopes for a recovery in rural demand. We maintain our estimates and NEUTRAL rating. We value HUL at 45x on Sep-21 EPS with TP of Rs 2,017.

Premiumisation trend to help drive higher revenues/margins Driven by premiumisation trend across segments, HUL's revenue has grown 9% in the last 10 years. On the back of premiumisation, the FMCG major has gained market share in most of its key categories like laundry, personal wash, hair care and beverages. Over the years, HUL has launched premium products across its key categories. Its most successful premium products (Surf, Dove, Lipton) have been growing significantly, ahead of market growth. As a result, HUL's operating margins has seen consistent expansion...

ff Upside Risks: (1) Higher consumption leading better-than-expected demand; (2) significant better pricing growth despite benign raw material prices; (3) higher-than-expected synergy benefit of from GSK integration....

14 October 2019 EBITDA rose 21% YoY to INR24.4b (16% on a comparable basis after adjusting the company has started utilizing the corporate tax benefits from 2QFY20 itself, leading to a sharp PAT beat. Domestic consumer business sales were up 7% stood at 54.5%, while the EBITDA margin expanded 290bp YoY to 24.8% up 210bp YoY adjusted for Ind-AS 116 and 50bp adjusted for the impact of government grants. Notably, HUVR delivered a margin improvement despite a 20bp YoY/70bp QoQ increase in ad spend. Revenue was up 9.4% YoY at Home Care (34% of sales) and 5.3% YoY at Personal Care. Food & Refreshments (19% of sales) sales were up 8.4% YoY. Margin expanded 150bp YoY in Home Care and 260bp YoY in Personal Care, but shrank 140bp YoY in F&R.; Rural growth was 0.5x urban for the sector in 2QFY20.

We cut HUVR's FY20 and FY21 EPS by 1.1% and 2.6% despite 5% volume Change in Estimates | Target | Reco despite good monsoons 2) limited scope to increase margins from current...

Hindustan Unilever Limited's (HUL) Q2FY2020 performance was largely in-line with our expectations. Revenue grew by 6.7% and adjusted PAT grew by ~21.5% (operating profit margin [OPM] expanded by 191 BPS on a comparable basis to 23.8%). Strong growth in PAT was mainly on account of reduction in corporate tax rate, while profit before tax grew by ~8% during the quarter. Volume growth of the domestic consumer business stood at 5% on a q-o-q basis, despite moderation in rural demand in July and August 2019....

Over the past few years, Axis Direct Muhurat Picks have outperformed the Benchmark indices. Despite the volatility involved in Samvat 2075 (Muhurat Picks 2018)our recommended portfolio has outperformed the benchmark by margin.

We retain our HOLD rating on the stock, with a revised target price of Rs 1,790, based on 48x FY21E adj. EPS. Topline boosted by volume growth HUL reported 6.6% YoY growth in topline to Rs. 10,114cr, with product sales revenue contributing Rs. 9,984cr (+6.7% YoY). The revenue growth was led by improvements in the rural and urban consumer business (+7%) with underlying volume growth of 5%. By segment, revenue growth was led by home care division (+10.1% YoY to Rs. 3,465cr; volume driven growth) followed by food & refreshment business (+9.2% to...