Hindustan Unilever Ltd. share price target

Hindustan Unilever (HUVR) reported a good set of numbers on all fronts in 4QFY21, led by a recovery in its Discretionary portfolio and Detergents. Two-year average like-to-like sales growth has now improved to 5.8% in 4QFY21 from minor decline in 1QFY21. Ongoing lockdowns would result in a temporary impact on high-margin discretionary product sales, leading to a 4.3% EPS reduction in FY22E; we have retained our FY23E forecasts. We continue to monitor the situation as it unfurls. HUVR is likely to resume the strong earnings growth path from the preCOVID era (~18% CAGR in the four years ended FY20), led by the same...

HUL is India's largest fast-moving consumer goods company with well-renowned household products.Maintain buy with a TP of Rs 2,550.

On a consolidated basis, the FMCG major's net profit rose 18.8% to Rs 1938 crore on 20.57% rise in revenue from operations to Rs 12,181 crore in Q3 FY21 over Q3 FY20. The FMCG major's profit before tax rose 16.46% year-on-year to Rs 2,596 crore in Q3 FY21. EBITDA grew by...

HUL reported moderate 4% volume growth in Q3FY21 due to muted demand in the detergent category. Revenue grew by 21% YoY (7% organic) to `11,682 cr led by the consolidation of new brands (Horlicks and Boost)....

Hindustan Unilever (HUVR) reported in-line operating performance for 3QFY21. Like-to-like sales growth of 7% YoY (20.9% YoY reported growth, including GSK) was in-line. On the other hand, underlying like-to-like volume growth of 4% was below expectations with realizations (led by...

Retain BUY with revised TP of Rs. 2,636 (earlier Rs. 2,455) as we raise our target PE to 55x FY23E EPS (53x earlier) given strategy to invest for growth and deliver a consistent and profitable volume led growth.

Hindustan Unilever (HUVR) 3QFY21 result was below our estimates due to higher than expected raw material cost pressure. Overall business, on comparable basis, grew 7%YoY (+4%YoY volume growth) driven by continued double-digit growth momentum in health, hygiene and nutrition portfolio. Revenue from discretionary portfolio moderately declined by 1%YoY while revenue from out-of-home portfolio recovered strongly compared to previous two quarters. Revenue from rural India grew at double digit while from urban remained in positive territory. Inflationary raw material led to decline in gross margin while higher other expenses contributed towards decline in...

Nutrition business to drive food segment growth Cost inflation, media spends to restrict margin expansion Palm Oil & Tea prices have been up 40% compared to last year. Though, crude prices have been 30% lower, it is slowly inching up. The company has taken only partial price hikes in last six months. Further, media spends have increased by 175 bps sequentially due to aggressive new launches. We believe these cost increase would restrict operating margin expansion. We...

We have done SKU level analysis of Hindustan Unilever's (HUVR) soap, detergent and tea portfolio which contributes c. 60% to total revenue. We note that; (i) tea and soap category, FMCG companies have taken price hikes driven by inflationary raw material pricing trend (ii) in tea portfolio HUVR has been highly conservative in taking price hikes while in Soaps it has been aggressive compared to competition (iii) in detergent powder category HUVR has taken price cuts in line with deflationary raw material pricing trend while P&G; has taken price hike. We expect; HUVR to gain volume led market share in both detergent and tea portfolio which contributes c. 33% to total revenue. In soaps...