Hindustan Unilever Ltd. share price target

We maintain BUY rating with the revised TP of Rs 2,450 (55x FY24E EPS) vs earlier TP of Rs 2,700 (56x FY24E EPS)

HUL’s underperformance of ~60% vs the Nifty over Mar’20-April’22 may be potentially interpreted as the stock already factoring in most of the concerns: (1) rural slowdown-led demand pressure, (2) inflation woes and (3) D2C-led premiumization challenges (reality and narrative).

Slowdown is wide spread, rural has been impacted more even as full impact of inflation and Russia Ukarine crisis is yet to play out fully We are cutting HUL's EPS estimates by 2.3/8.2/6.1% for FY22/23/24 and DCF based target price to Rs2356 (Rs2900 earlier). This follows impact of 1) deepening slowdown in demand in rural and urban India 2) likely hit on...

HUL, the largest FMCG player in India, was formed by merging three subsidiaries of Unilever in 1956

Hindustan Unilever Limited (HUL) is the largest FMCG player in India.

With its strong brand power, diversified portfolio, increasing market share and wide distribution network, the company is well positioned to deal with near-term uncertainties. Ongoing measures like grammage reduction on certain products will aid combat input cost inflation in future. We reiterate our BUY rating on the stock with a rolled forward...