Hindustan Unilever Ltd. share price target

programs such as project symphony and zero based budgeting to drive savings across the value chain and thus has been able to take up the savings from 3-4% historically to 5% during FY17....

Ahead of expectations: Net sales, EBITDA and Adj. PAT grew 5%, 14% and 15%. FMCG volumes stood flat YoY, affected from GST led destocking in Jun-17. On the back of cost efficiencies and stable input costs, OPM expanded 176 bps YoY to 21.9% YoY. Gross margin expanded 90 bps YoY to 51.4%. GST led issu..

Revenue grew by 3.72% to Rs. 8401.0 Cr in Q1FY18 when compared to the previous quarter. Revenue grew by 3.72% to Rs. 8401.0 Cr in Q1FY18 when compared to the previous quarter.

For the quarter, the company's domestic consumer business grew at 6% with flat underlying volume growth. EBIDTA margin expanded by 180 bps to 21.9%. Growth and margin improvement were mainly achieved through a combination of price hikes, favorable product mix & cost saving measures. The company maintained its strategy to focus on volume driven growth and improvement in operating margin while strengthening its portfolio through innovation, premiumization, and...

HUL's high valuation is natural, considering consistent market share gain with margin expansion and strong RoCE. We expect HUL to be a key beneficiary of GST and premiumisation. We increase our target P/E to 42x (40x earlier) on Jun-19EPS. Our TP is Rs 1,304 (Rs 1,200 earlier). We maintain BUY. HULs 1Q numbers came in better than expectations, despite channel destocking pressure. HULs net revenue was up 5% YoY at Rs 85.3bn (1% expectation). The domestic consumer business registered healthy 6% growth, with flat UVG (-1% expectation). EBITDA and APAT were up 14% and 15% respectively.

HUL reported a healthy set of numbers ahead of our estimates despite the de-stocking ahead of GST implementation. The company reported sales growth of 5.0% YoY (volume remained flat) to | 9094 crore, 8.1% higher than our estimate of | 8416.3 crore The refreshment segment grew 10.8% YoY, followed by home care segment, which grew by 5.9%. The food and personal care...

Superior Growth Trajectory to Sustain Rich Multiples; Upgrade to BUY Hindustan Unilever (HUL) has reported a strong set of numbers in 1QFY18 as its net sales grew by 5.2% YoY to Rs84bn, while EBITDA and PAT (before exceptional item) surged by 14.1% YoY and 14.6% YoY, respectively. Despite flat volume growth due to overhang on account of GST rollout, revenue growth was higher due to effect of pricing action in the previous quarters. Continued focus on premiumization, strong new product funnel, consistent focus on cost rationalisation and higher share of organised players post GST would drive accelerated growth for HUL in coming years. We expect HUL to post revenue and earnings CAGR of 12.2% and...

HUVR's investor day 2017 was focused on highlighting strategies and key areas such as up trading, new product development with thrust on creating segments of the future, expansion into naturals and relentless efforts at strengthening the core.

We attended HULs annual investor meet. Our interaction with the company?s senior management has further increased our confidence on its earnings trajectory over the next two to three years.

Hindustan Unilever (HUL) hosted its Annual Investor Meet on June 2, 2017 where the company reiterated its positive outlook on the long term consumption story of India driven by urbanisation and premiumisation. The key thrusts for the company remain on a) strengthening the core portfolio, b) continuous innovation across categories, c) premiumisation, d) market development both in terms of low penetrated products as well as creating need for future categories, e) strong focus on the natural's segment and f) touching lives of consumers with a differentiated...